Thomas Lee, a real shark in the world of cryptocurrency and a head of Fundstrat Global Advisors, claims that a number of stocks should work. He says:
“Investors should have an exposure to blockchain, considering bitcoin that doesn’t have any correlation to equities, goods or any other bonds. Therefore, as a portfolio strategy, bitcoin might work as an efficient diversification tool. However, equity managers will find this impractical, considering the some problems like custody tokens, etc.”
Investors have been looking for some strategies to get profit from cryptocurrency without a need to buy them from the unsafe exchanges, susceptible to hacker attacks. Lee doesn’t include bitcoin derivatives that were presented on Cboe Global Markets Sunday and CME Group in the dangerous list.
Thomas Lee has always been of the main advocates of digital money. Recently, he doubled his target bitcoin price to $11,500. He offers equity managers to pay attention to these ideas and leverage the algorithm of blockchain in their portfolios:
- MGT Capital Investments Inc. (MGTI)
- DigitalX Ltd. (DCC)
- Bitcoin Investment Trust (GBTC)
- NVIDIA Corp. (NVDA)
- HIVE Blockchain Technologies Ltd. (HIVE)
- Advanced Micro Devices Inc. (AMD)
- S. Global Investors Inc. (GROW)
- Cboe Global Markets Inc. (CBOE)
- Square Inc. (SQ)
- com Inc. (OSTK)
- Goldman Sachs Group Inc. (GS)
- CME Group Inc. (CME)
Bitcoin futures become more and more available these days and speculators are actively shifting from the stocks of companies that have received profit as bitcoin’s price became 15 times higher this year. US Global Investors as well as HIVE Blockchain Technologies have recently lost about 10% of their income. Advanced Micro Devices and Nvidia have experienced losses in December as well.
According to Lee’s words, the stocks’ equal weighted basket has grown up by 136% this year. Surprisingly, he also mentions that these numbers still straggle bitcoin’s 1,685 rise in 2017.
So, how a common user can actually earn money without buying coins?
After reviewing some basic financial facts about current cryptocurrency market, we are going to talk about some accessible earning potential for common users.
As we already know, newcomers and smart investors want to take advantage of bitcoins without owning them because there are too many risks connected with exchange markets. As Thomas Lee believes, the best way to earn money is derivatives. Before we discuss why derivatives are profitable, let’s find out what are they and how they work.
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A derivative investment derives its value from something else, not an actual asset. Therefore, there is no need to own an asset to earn money on it. The most widely-used type of such investment is called a binary option. Binary traders make predictions about possible directions the price of an asset is going to take. It means that you are predicting whether bitcoin is going to grow or fall in value. To make a prediction, you invest money in binary options to designate your assumption. If you are right, then you get the money. Similarly, if you are wrong, you lose your investment.
Why should you try bitcoin binary trading?
When you choose bitcoin as a binary trading option, you have a good chance to make money despite the direction bitcoin is following. The trick is that binary options that rely on the most variable assets are the best. The reason is that high variability brings more opportunities for the asset.
Currency as an asset has the highest possible demand of all. It is obvious: everybody wants money! As everybody wants cash, the value of cash grows. And bitcoin is actually a cash. Currency market is the most variable one in the world and therefore it offers a great number of opportunities for a trader.
As for bitcoin, it goes a step ahead standard currency. Bitcoin’s variability creates perfect environment for binary trading, however it has one additional advantage. The currency market’s variability is analyzed through small price movements, while the visible bitcoin movements are enormous.
The swings in bitcoin value are immense. As a result, predictions become obvious, the trading process becomes easier and the chances to get profit grows.
If the enticing possibilities of bitcoin attract you, but you are not ready to buy coins – don’t worry. Binary trading is a great option for those who want to get money from bitcoin’s price movements without buying one. So consider this option, start trading and good luck!