3 Ways to Buy Bitcoin Without Buying Bitcoin

These three cryptocurrency stocks are strong options for those wanting in on Bitcoin, but with a share price that’s pennies on the dollar.

cryptocurrency, crypto, blockcahin

Image source: Getty Images

Bitcoin (CRYPTO:BTC) continues to be one of the biggest investment trends of 2022. Yet lately, there’s been a pullback that’s left some potential investors scared. And rightly so. After hitting all-time highs of almost $86,000, Bitcoin has since more than halved in price. As of writing, it trades at $42,707.

Now granted, if you have the cash available, there are some investors that see this for the opportunity it is. But if you don’t, there are certainly ways to latch onto Bitcoin without making such a massive investment.

So today, we’ll focus on three options.

Purpose Bitcoin ETF

Exchange-traded funds in the cryptocurrency sector grew in popularity last year, as did Purpose Bitcoin ETF (TSX:BTCC.B). The company came on the market in 2021, and invests solely in Bitcoin. So you can pay pennies on the dollar compared to buying Bitcoin, but take full advantage of its growth.

The benefit over buying the cryptocurrency directly is that Purpose continues to buy up the digital currency on a regular basis. This also helps increase its assets, and in return its share price. Right now, of course, it’s trading lower than when Bitcoin was at all-time highs. But if you want to get in on the digital assets, this is a phenomenal, and cheap, way to do it.

Galaxy Digital Holdings

Another company that could give you access to Bitcoin is Galaxy Digital Holdings (TSX:GLXY). Galaxy stock has been bouncing up and down like a yo-yo in recent weeks. On the one hand, investors continue to take returns as the market goes through this pullback. On the other, bullish investors continue to then buy it up for a rebound.

So what about long-term investors? Analysts like Galaxy stock because it offers diversity. It manages cryptocurrency companies, invests in blockchain, mining, and of course Bitcoin and other digital currency directly. Now I’m not going to lie. Right now is a volatile time for Galaxy stock. But if you’re willing to be patient, you could see similar growth compared to last year, when the company doubled in share price.

Hut 8 Mining

Finally, I mentioned digital mining companies, so this is where you can also invest in Bitcoin. Hut 8 Mining (TSX:HUT)(NASDAQ:HUT) is a solid option, offering a strong jumping in point, trading at just 11.68 times earnings. Now while it mines for cryptocurrency in general, it focuses on Bitcoin on a massive scale. In fact, it owns more self-mined Bitcoin than any other publicly traded company in the world.

So if you want in on today’s price of the cryptocurrency, Hut 8 stock certainly offers you a lot of potential. The company continues to grow its operations, both organically through mining, and also through acquisitions. As it continues to bring in revenue, Hut 8 stock is sure to rebound once cryptocurrency makes it through this pullback.

Foolish takeaway

Cryptocurrency in general continues to experience this drop in share price, and Bitcoin is no exception. That being said, if you’re bullish on the digital currency long term, it’s a great time to consider it. But if you don’t have the cash or the stomach to take on big risk, then dipping your toe in these three could be a smart, long-term option.

This article represents the opinion of the writer, who may disagree with the “official” recommendation position of a Motley Fool premium service or advisor. We’re Motley! Questioning an investing thesis — even one of our own — helps us all think critically about investing and make decisions that help us become smarter, happier, and richer, so we sometimes publish articles that may not be in line with recommendations, rankings or other content.

Fool contributor Amy Legate-Wolfe has no position in any of the stocks mentioned. The Motley Fool owns and recommends Bitcoin.

More on Investing

question marks written reminders tickets
Tech Stocks

Nvidia’s Historic Stock Split: Will Investors See Bigger Gains?

Nvidia's (NASDAQ:NVDA) record 10:1 stock split entices many investors in several important ways. But some myths aren't technically correct.

Read more »

Senior Man Sitting On Sofa At Home With Pet Labrador Dog

Retirees: 2 TSX Dividend Stocks That Have Raised Payouts Annually for Decades

These stocks offer high yields and should continue to raise their payouts.

Read more »

TFSA and coins

5 Canadian Stocks With a Real Chance of Tripling Your TFSA’s Value

TFSA balances can triple in value with five Canadian stocks that have delivered outsized gains in recent years.

Read more »

A worker drinks out of a mug in an office.
Tech Stocks

Want $1 Million in Retirement? 3 Stocks to Buy Now and Hold for Decades

Growth stocks such as Docebo and Celsius Holdings should help you generate outsized gains in the upcoming decade.

Read more »

Hour glass and calendar concept for time slipping away for important appointment date, schedule and deadline
Dividend Stocks

This 8% Dividend Stock Pays Cash Every Month

Earn monthly cash of $154 with this 8% dividend stock.

Read more »

A miner down a mine shaft
Metals and Mining Stocks

Should Investors Buy the Correction in Lundin Mining Stock?

Lundin (TSX:LUN) stock has fallen by 10% in the last few weeks, but so has the price of copper. Coincidence?…

Read more »

Metals and Mining Stocks

Best Stocks to Buy in May 2024: TSX Materials Sector

A TSX materials sector ETF could help investors gain cheap diversified exposure to the hot sector's stocks – so will…

Read more »

man is enthralled with a movie in a theater

Should You Buy Cineplex While it’s Below $9?

With analysts expecting a significant recovery in the second half of 2024, is this the last chance to buy Cineplex…

Read more »