Friday, June 21, 2024

Which Cryptocurrencies Can You Trade on the Stock Market?

Many people want to know if it’s possible to trade cryptocurrencies on the stock market. If you’re one of them, you can find the answer directly below.

For over a decade now, cryptocurrencies have experienced worldwide popularity.

This is largely thanks to Bitcoin, which helped to bring the concept of digital currencies into the mainstream.

Since the explosion of Bitcoin, various other cryptocurrencies have entered the market. A few examples include:

  • XRP
  • Dogecoin
  • Binance Coin

Of course, not every cryptocurrency is as valuable as Bitcoin. However, as society progresses towards a digital outlook, the potential for a particular cryptocurrency to suddenly skyrocket in value is always there, which is what makes the industry so exciting.

Unsurprisingly, traders have joined the crypto party – and you might want to do the same, too. So, this raises the question:

Which Cryptocurrencies Can You Trade on the Stock Market?

Right now, cryptocurrency is independent of the stock market.

What this means is that cryptocurrencies are not traded on the stock market the same way that stocks from other entities are. You cannot directly trade any cryptocurrency – such as Bitcoin – through a stock exchange. Interestingly, though, you can use EFTs (exchange-traded funds) that can then be traded on stock exchanges, as EFTs track the prices of most cryptocurrencies.

For example, cryptocurrencies are not traded on Wall Street, largely because cryptocurrencies aren’t regulated, which makes them a ‘risky’ investment in the eyes of many traders.

Despite this, there’s a strong belief that the price of cryptocurrencies (such as Bitcoin and Ethereum) have a large influence on the stock market, but this cannot be officially verified.

The good news is that you can buy stocks in any cryptocurrency. For example, you can visit okx.com for ethereum stock prices to see if the prices appeal to you and your budget. You can also view the stock prices of various other cryptos, like the above-mentioned Bitcoin.

The most commonly traded cryptocurrencies include Ethereum, Bitcoin, and Dogecoin.

How Can I Buy Crypto Stocks?

To buy crypto stocks, you will firstly need to find a brokerage or crypto exchange. Think of these as the ‘middlemen’ between you and the cryptocurrencies.

Robinhood Markets is a popular example of a crypto exchange that millions of people use.

From there, it’s simply a case of creating an account and selecting the amount of money you wish to exchange for stocks in your desired cryptocurrency.

For example, with Bitcoin, you can invest as little as $2, which is pretty good for a beginner to try.

Are Cryptocurrencies Safe to Invest In?

Many newbies and beginners are sceptical about cryptocurrencies, as they don’t know whether they’re a safe investment or not.

The truth is that, as of 2022, cryptocurrencies are an excellent investment opportunity. It’s highly recommended, though, that you stick with either Ethereum or Bitcoin, as these are the most valuable and reliable cryptocurrencies on the market.

If you want to, you can take a risk by trading lesser-known cryptocurrencies, such as Filecoin, but this always comes with a risk, as you can never be certain how they’re going to perform on the market moving into the future.

Claire James
Claire Jameshttp://www.firedigitaluk.com
Claire is an accounts manager at Fire Digital UK, an online publishing and content marketing company based in the North West.

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