Using Bitcoin to Buy Stocks

Fredrick Awino
06.09.2022
451 Views

Skeptics can say so much about bitcoins including the different seasons of plummeting and shedding off that almost threw investors into a spin. On the other hand, bitcoin has so many success stories from the many billionaires who trace their fortunes to it. With such mixed stories, a budding investor or trader in cryptocurrency has a choice to go by positive vibes about the currency and one such good dawn is that bitcoins can be used to buy stock. 

WARNING: Investing in crypto, or other markets, can be of a high risk for your savings. Do not invest money you cannot afford to lose, because there is a risk for losing all of your money when investing in crypto, stocks, CFDs or other investments options. For example 77% of retail CFD accounts lose money.

Personally, I have read a series of testimonies of how many individuals have been winning and making fortunes from cryptocurrency. What I can confirm from such stories and inspirations is that cryptocurrency has become a massive life changer for the lucky ones. 

But aside from the success stories, there are others who have cried foul. Maybe they failed to put their strategies right. Well, it is vital to note that before engaging in any investment in cryptocurrency, one must know that it is a risky venture. You can either win big or lose very badly. Therefore, it is only prudent that you put in just what you are ready to lose.

All in all, Bitcoin remains to be the most famous and popular cryptocurrency that has existed since 2009. Of all the investors owning cryptocurrency, a large portion of them have BTC. This is closely attributed to the soaring rise in the price of BTC and its high value in the crypto market. Evidently the thronging in the demand to own BTC is on the highest end.

It is easier to invest in BTC directly through the simplicity of various indirect securities like futures and shorting futures. The IPO of Coinbase defines the very first public traded crypto exchange which categorically directs more attention to BTC price. Listing for sure makes investors demand for more information on how to invest in BTC given its level of popularity and price soaring.

What is Bitcoin (BTC)?

When looking into cryptocurrency, you are bound to come across a number of cryptocurrency offerings. And given a chance you may end up settling for BTC as your most preferred option to invest in, given the high value it fetches. But probably it is because of its popularity and famous nature in the cryptocurrency market.

By definition, Bitcoin refers to a digital currency based on a decentralised peer-to-peer network controlled by crypto users. There is no third-party involvement in any transactions initiated. All transactions are then made public within the BTC network to avoid issues of double spending. 

According to some internet sources, BTC was created by a group of persons with an intention of solving the issue of double spending. There is absolutely no risk associated with the identification of buyers and traders in BTC but most investors like to trade anonymously. It is valuable and this can be closely related to the value of gold.

I cannot blame any enthusiast given the fact that the BTC dollar value average has continuously gone up to $21,626.9. The market capitalization of BTC is also at $386,457,144,517.55. who wouldn’t want to invest on such great values. Investing in BTC is always a good idea.

Buying Stocks with Bitcoin

There is a perception making rounds that investors could experience some complexities while buying stocks and shares using BTC. This apprehension whether real of just perception continue even as many brokers offer trading opportunities in both. Despite the existence of a natural cross-over in the two markets, direct exchange of BTC for stocks has been on the low.

Currently, the world markets users are able to use BTC to purchase stock in various companies. Consider Facebook, Netflix, Apple, Boeing, Ford, and other numerous companies. This is only possible through tokenize and fractionalize smart connections. 

Clients are now able to trade and hold stock in the entire S&P 100. The tokenize and fractionalize platform has the intent to raise the functionality to also cover the whole S&P 500 share index. But this did not just stop here, Germany’s DAX, UKs FTSE 100, and Japan’s Nikkei are all for this interest. Besides, there are many other interesting markets in Brazil, Korea, France, and more of the several other ETFs.

Current Best Brokers/Exchanges to Buy Stocks with BTC

If you have been investing in cryptocurrency assets, then it is true that you sure must made lots of good profits in Bitcoin. And now you have contemplated on the idea of releveling your portfolio so that your coins are not overly dormant.

With the intention of investing your digital money in stocks, you have the option of bypassing the bank and using your Stablecoins. Your money is then moved to an exchange with an option of stock trading which accepts cryptocurrency deposits.

One example of such exchanges is the FTX which can easily accept your BTC deposits through the tokenized stocks platform. FTX has tokenized stock trading markets on various large-scale companies that have been listed in the US. TSLA is an example of a market that trades tokens for Tesla stocks.

Additionally, you are also able to purchase traditional stocks from platforms that give room for trading in stocks and BTC. For this we have eToro as a better choice for this purpose. eToro also offers you the option of buying fractional stocks. Not many stock brokers have the option of fractionalization available for you but eToro does. 

Cryptocurrency Trading 

Over the last decade BTC has registered a return on investment of 100%. This clearly suggests that investing in BTC has never been a disappointment but rather the best idea. Maximisation of profits and returns is all dependable upon timing against the highly volatile cryptocurrency market.

However, the option of trading your BTC for stocks is also a simple enough procedure. It allows you to simply purchase BTC through your trading account and then you will decide on which stock you wish to trade on. 

In the initial stages, the stocks form trading pairs with bitcoin. But as all these advances, world markets are adding support for future trading against other cryptos. Besides, you can also trade your BTC pairs by combining several major tokens. Remember however, always keep exchanges on what you are willing to lose.

Author Fredrick Awino