With the rapid development of the cryptocurrency market, we’re seeing an increase of innovative cryptocurrency-powered platforms. Bitcoin and cryptocurrency owners can now use their digital assets to trade, take out loans, earn interest, bet on sports or real-world events, buy digital collectibles, and more.
While we can now do so many things with cryptocurrencies, there are still some areas that need improvement. For example, there is still a big divide between the world of cryptocurrency and the world of traditional investments and markets.
Currently, it’s not so easy to find ways to buy stocks with Bitcoin. We suspect that the main culprit for this is the lack of regulatory clarity on cryptocurrencies, which continues to be a problem in numerous jurisdictions despite the advances made in recent years.
Investing in stocks with Bitcoin
Fortunately, there do exist some ways that you can use cryptocurrency to speculate on the prices of stocks, indices, and commodities.
Please note that the platforms covered in this article don’t allow you to buy actual stocks, commodities, or funds that track indices. Instead, they offers ways for you to gain exposure to the price movements of these assets.
Only one of the featured platforms (Currency.com) allows users to gain exposure to specific stocks. However, the other services offer trading products that track major stock market indices, providing exposure to major stock markets such as the United States, Europe and Japan.
Now, let’s take a look at the various services you can use to invest your Bitcoin or other cryptocurrency into stocks or other traditional markets.
PrimeXBT is a Bitcoin-based trading platform that enables users to speculate on the price movements of cryptocurrencies, commodities and indices with high leverage. PrimeXBT has a very quick signup process, requires no KYC verification, and boasts a fully customizable trading interface.
As far as traditional markets are concerned, PrimeXBT currently lists trading products tracking the S&P 500 and NASDAQ-100 (United States), Nikkei 225 (Japan), Hang Seng Index (China), Germany 30 (Germany) and the UK100 (United Kingdom).
These instruments on PrimeXBT are structured as contracts for differences (CFDs) and they can be traded with up to 500x leverage – this should be more than enough leverage for all traders.
The pros of trading on PrimeXBT:
- Fast signup process and no KYC required
- Accepts Bitcoin
- High maximum leverage limit
- Also offers instruments based on commodities, cryptocurrencies and forex markets
The cons of trading on PrimeXBT:
- You can only withdraw Bitcoin
- Cannot gain exposure to specific stocks
Currency.com is a trading platform where users can access a huge variety of markets. Through Currency.com, users can gain exposure to stocks, commodities, popular indices, cryptocurrencies, as well as forex markets – the amount of markets is very impressive.
For stocks, Currency.com leverage, which ranges between 5x and 20x. The instruments listed by Currency.com are actually tokens that track the price movements of the underlying asset.
Of course, the most appealing feature of Currency.com for the purposes of this article is that the platform accepts cryptocurrency deposits – users can fund their accounts through Bitcoin, Ethereum, Bitcoin Cash and Litecoin.
Unlike the other two platforms featured in this article, KYC is mandatory on Currency.com. You will need to verify your identity before you can trade on this platform.
The pros of trading on Currency.com:
- Accepts both cryptocurrency and fiat currency
- Huge amount of markets available for trading
- Offers up to 20x leverage on stocks
- Demo trading mode
The cons of trading on Currency.com:
- KYC is mandatory
- Withdrawal fees are quite high
Synthetix is a decentralized finance protocol built on the Ethereum blockchain. The protocol is designed to facilitate the issuance of synthetic assets, or “Synths”. These Synths come in the form of ERC-20 tokens and are designed to track the price of other assets.
You can interact with the Synthetix protocol through platforms like Synthetix Exchange. The platform lists a variety of Synths, which track various types of assets including cryptocurrencies, commodities, and indices (Nikkei 225 Index and FTSE 100 Index are the two indices available at the moment).
For now, Synths tracking individual stocks are not yet available. However, the Synthetix ecosystem is evolving rapidly and we wouldn’t be too surprised to see a much more diverse array of Synths becoming available in the future.
Since all of the conversions between different Synths happen on the Ethereum blockchain, you don’t even need to create an account in order to trade through a platform such as Synthetix Exchange – simply connect your Ethereum wallet and you’re ready to go. However, you will need to use your ETH to purchase some Synths such as sETH or sUSD before you can start trading.
The pros of trading on Synthetix:
- Synths that track the price of fiat currencies, cryptocurrencies, commodities, indices
- Gain exposure to real-world assets through the Ethereum blockchain
- All you need to trade is an Ethereum wallet
The cons of trading on Synthetix:
- Synths tracking individual stocks are not available yet
- The system is arguably more complex than using a standard centralized exchange
- Leveraged Synths are not currently available
Koinpro is a trading platform that accepts deposits made with Bitcoin or stablecoins. While you cant trade individual stocks on Koinpro, the platform does give users the ability to trade major stock market indices, including the S&P 500, Euro Stoxx 50, Nikkei 225, and more. Koinpro also offers trading instruments for speculating on the price movements of gold and crude oil.
The platforms instruments for speculating on traditional markets are CFDs (contracts for differences).
Koinpro offers leverage of up to 100x, and the platform can also be tested out without any risks thanks to its demo trading mode. In addition to indices and commodities, Koinpro also lists a pair of Bitcoin futures contracts.
The pros of trading on Koinpro:
- 8 tradeable stock market indices
- Gold and crude oil
- Up to 100x leverage
- Demo trading
The cons of trading on Koinpro:
- Doesnt offer markets for individual stocks
- BTC and USD deposits only
The bottom line
As we can see, it is possible to use cryptocurrency to gain exposure to stocks and other traditional assets, but we still have a long way to go, especially when it comes to investing in specific stocks with cryptocurrency – when it comes to indices and commodities, the situation is noticeably better. Hopefully, this article introduced you to new platforms that will give you additional options on your cryptocurrency journey.
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