Friday , 21 September 2018


Here Are All The Ways You Can Buy, Trade, and Invest In Bitcoin

…Trading bitcoin may still not be as simple as trading most stocks, but it has made huge strides toward becoming a mainstream investment in 2017.

The original article by Wayne Duggan has been edited for length (…) and clarity ([ ]) by munKNEE.com to provide a fast & easy read. For all the latest – and best – financial articles sign up (in the top right corner) for your free bi-weekly Market Intelligence Report newsletter (see sample here) or visit our Facebook page.

Here’s a look at all the ways traders can play bitcoin and what may be coming next.

Coinbase

Coinbase is a cryptocurrency exchange and trading platform that allows customers to trade bitcoin directly. Coinbase even offers margin trading for traders who qualify under the Commodity Exchange Act. These qualifications are geared more toward institutional investors than small retail traders. Requirements include at least $5,000,000 in discretionary investments for individuals.

GDAX, which is owned by Coinbase, is a platform that allows active trading of bitcoin, as well as Litecoin and Ethereum. Other popular exchanges are Bitttrex, Gemini, and Poloniex.

The GBTC ETF

Grayscale Investments’ Bitcoin Investment Trust GBTC, trades on the OTC Market and invests directly in bitcoin. Unfortunately for investors, the GBTC ETF trades at a significant premium to its net asset value and is currently priced 49.5% above NAV, according to Bloomberg.

Bitcoin Options

In May, bitcoin options exchange LedgerX raised $11.4 million in funding to follow-through with its plan to operate a regulated cryptocurrency exchange and clearing house.

In October, the Commodity Futures Trading Commission officially approved LedgerX for derivative clearing, which began later that month. LedgerX reportedly handled more than $1 million in bitcoin derivatives trading in its first week…

Bitcoin Stocks

There are a handful of companies that are invested or involved with bitcoin or the cryptocurrency’s blockchain technology. These stocks come with their own risks and will have a looser correlation to bitcoin price movements than trading the cryptocurrency directly. Here are a few:

  • Overstock.com Inc. OSTK
  • Digital Power Corporation DPW
  • Riot Blockchain Inc. RIOT
  • U.S. Global Investors Inc. GROW
  • Social Reality Inc. SRAX

Several of these companies are small-cap stocks with all the volatility that comes with the territory.

Bitcoin Futures

The closest thing for traders to trading bitcoin in their trading accounts like an actual stock is the new Cboe XBT bitcoin futures contracts. After confirming that the account meets the necessary requirements, buying and selling bitcoin futures is as simple as entering the XBT ticker and clicking “trade.”

CME Group Inc. is expected to launch bitcoin futures trading later this month, and Nasdaq Inc. has said it plans to launch bitcoin futures trading sometime in early 2018.

Where To Trade Bitcoin

Several of the most popular online brokers are already allow bitcoin futures trading, and many more have said they will sometime soon:

  • Interactive Brokers IBKR allows long and short bets on bitcoin futures.
  • TradeStation has said it will support Cboe bitcoin futures.
  • Ally Financial has said it will support bitcoin futures trading.
  • TD Ameritrade, Charles Schwab, E-Trade and Fidelity are reportedly taking a “wait and see” approach before allowing Bitcoin futures trading on their platforms.

A Big-Board Bitcoin Listing

Of course, many investors would only consider investing in bitcoin if they could get access to the currency directly via an ETF listed on either the Nasdaq or the NYSE. The Securities and Exchange Commission has rejected multiple proposals for big-board-listed bitcoin ETFs, including the proposed COIN ETF backed by the Winklevoss twins.

The SEC has concerns over the lack of regulation of the bitcoin market, but has left the door open for additional proposals. There have reportedly been more than a dozen bitcoin ETF filings for that potential SEC approval, meaning a major Bitcoin ETF with all the regulatory protections of a major exchange listing could be on the way in a matter of months.

Scroll to very bottom of page & add your comments on this article. We want to share what you have to say!

Related Articles from the munKNEE Vault:

1. Bitcoin: Total Wipeout Alert

The pattern on the Bitcoin charts has all the hallmarks of a final terminal blow off that will be followed by a catastrophic wipeout and probably soon…The inexperienced get rich quick merchants who have been flocking in droves to Bitcoin in recent weeks will be vaporized.

2. Bitcoin: Plan Your Exit Strategy NOW – Don’t Wait Until the Stampede Starts

The above are the questions you need to be asking now, during the euphoria stage of a bull market. I’m not calling the top in bitcoin. I’m saying prepare for the top.

3. Bitcoin Price Of $32,500 On January 1, 2018 Possible – Here’s Why

The initial target of $24,340 on December 13 is realistic, considering the parabolic nature of the larger uptrend. With a sustained uptrend, the next target of $32,500 is on January 1, 2018. That upper price level is highly ambitious, yet not out of the question.

4. Bitcoin: Answers To 7 Questions You Were Too Embarrassed To Ask

While almost everyone has heard of Bitcoin at this point, many people are fuzzy on the details: what is a bitcoin, exactly? How do I buy some? What would I use it for? Here are the answers to those and a few other questions you were afraid to ask.

5. Bitcoin Gives Gold the Finger!

Those who love gold must feel horribly betrayed, particularly as they look at Bitcoin. The same money put into cryptos instead of gold would have yielded millions, if not billions (given enough starting capital) in profits, whereas gold has just withered away like a maple leaf on an autumnal sidewalk. It’s no different for the miners, of course.

6. Bitcoin Could Make Things Worse For Gold Before They Get Better

Bitcoin trading is totally bonkers and it doesn’t look like it’s going to calm down anytime soon. It’s morphed from an underground tech-geek trade to the biggest market mania we’ve seen in decades.

7. The Bitcoin Bubble Explained in 4 Charts

Many financial pundits and crypto advocates have scrambled to argue whether Bitcoin is a bubble or not so, as the financial community takes sides, I have dug into Bitcoin’s tremendous run using nothing but hard data to see whether it’s in bubble territory or not. Below is what I found as illustrated in 4 charts.