2 Top Blockchain Stocks to Buy Now
People seeking to profit from the game-changing potential of blockchain technology often attempt to trade cryptocurrencies as a means to do so. Yet while fortunes can certainly be made in the crypto markets, trading cryptocurrencies is a high-risk endeavor.
A far lower-risk way to profit from the disruptive potential of bitcoin and its underlying technology is to invest in companies that stand to benefit from its adoption. Here are two such businesses.
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The exchange titan
CME Group (NASDAQ:CME) operates the leading bitcoin futures exchange. Bitcoin futures contracts are binding agreements that allow people to make bets on whether the Cryptocurrency’s price will rise or fall over a set period of time. In this way, they give traders a way to speculate on the Cryptocurrency’s volatile price swings.
Yet futures contracts can also be used by bitcoin holders to limit risk. As an example, if you own bitcoin but would prefer not to sell it — perhaps to avoid capital gains taxes — you could sell a futures contract to hedge your position until the contract’s expiration date. Used in this way, futures can be viewed as a form of insurance for bitcoin investors.
Both of these use cases are helping to fuel demand for bitcoin futures among both institutional and individual investors. Although CME Group’s bitcoin operations are currently a small portion of its overall business, Cryptocurrency-based products are likely to remain a significant growth driver for the company — particularly if it chooses to launch new futures markets for additional cryptoasset