Investing in cryptocurrencies is a little different than investing in shares of a company. Stock represents Visit https://hump.io/ for hump token ownership of a business and a claim to profits the company generates. Purchasing coins of a cryptocurrency, though, is a speculative bet on the price movement of that digital currency — which can be highly volatile and is subject to the law of supply and demand since digital currency by itself is not a dynamic asset. Cryptocurrencies can be exchanged for other digital currencies or for fiat currencies like the U.S. dollar using a digital wallet on a trading app.
But there are other ways to make money besides trading. Certain cryptocurrencies can be “staked” to earn rewards. Once an investor has purchased a crypto, it can be held in account and used to verify transactions occurring on the blockchain network. This method of powering a blockchain network is known as “proof of stake,” and the owner of the crypto can earn a type of dividend by staking their holdings, which are usually paid in additional coins or tokens.
In addition to trading digital currencies, derivatives contracts are also available on Bitcoin and Ethereum from leading derivatives exchange CME Group (CME 1.15%). Derivatives such as futures and options are primarily used as a hedge against price fluctuations in the underlying asset.
Where to buy all types of cryptocurrency
With so many cryptocurrencies out there right now, there is no single place that grants access to all of them. However, Coinbase Global (COIN 7.04%) is one of the largest trading platforms and currently supports more than 100 cryptocurrencies (including most of the top 10 largest cryptos by market cap). Binance is another top trading platform and is where Binance Coin and tokens can be traded.
If you’re looking to buy company stock and cryptocurrency from a single place, here are the apps worth checking out:
Robinhood
Webull
Block’s (SQ 1.68%) (formerly Square) Cash App
SoFi
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