How to Buy Stocks Using Crypto – Bitcoin’s resilience over the years means the crypto coin is better suited to buying stocks in various markets globally. While it seems exciting to buy stocks using crypto coins, many offerings are yet to get behind the idea—volatility of the coin being a hindrance most companies are trying to avoid.
The crypto market is highly volatile, meaning sudden ups and downs can affect the real valuation of a company. Though traders can use the Best Crypto Day Trading Strategies in PrimeXBT or any other trading platform for personal gain, crypto prices are unpredictable, making investors skeptical about holding them at a time of uncertainty.
In a day’s price chart, the value of Bitcoin or any other cryptocurrency can rise as much as 5% or drop to record levels. In Q1 2022, the largest cryptocurrency by market cap fell below the $40K mark.
Such a colossal loss in January means that a company using Bitcoin as a benchmark would have lost a lot in valuation. The Dollar is more stable, making it a preferred alternative by a long shot.
Historic scenarios such as the massive loss in the crypto retreat in January dampen the mood for investors wanting to use Bitcoin as an alternative currency to the greenback in buying stocks.
Bitcoin and Company Stocks: Do the two have a Relationship?
Tesla had an idea to peg the value of some of their cars on Bitcoin; customers could use their stored crypto coins to buy new cars and shares. Such a move would have opened the gates for other companies to follow suit. If the deal lasted, PrimeXBT users could have easily withdrawn their crypto assets and used them to buy cars.
PayPal announced the integration of digital coins into their payment ecosystem, meaning that soon, most people will use their stored digital assets to buy anything in the open market anywhere in the world, including stocks.
Silvergate Capital is a company dealing in digital currency and has once seen its value rise by about $2 billion because of the colossal increase in the price of Bitcoin.
Buying NASDAQ’s Tokenized Stocks
NASDAQ has tokenized stocks for investor consideration, sold in brokerage accounts. The accounts require a special fee that helps move the funds into another account called the checking account. Funds moved into checking accounts can then transform into the desired crypto for the purchase of crypto stocks offered by the platform.
NASDAQ’S platform to buy crypto stocks has inspired the likes of the DX exchange, which offers a more streamlined approach to buying company stocks using cryptocurrency.
Unlike NASDAQ’s cumbersome procedure, DX makes the process seamless with definite crypto or fiat accounts for customers wishing to buy crypto stocks of any NASDAQ 100-listed company.
Users start by creating an account and filling it with desired crypto enough to purchase stocks.
DX provides a list of companies on the platform that includes Google stocks, Intel, Amazon and many publicly traded stocks available. Using the crypto, the user can pick the number of stocks available for purchase.
Purchased stocks in DX have a unique marker in the Ethereum blockchain, ensuring the security of the ERC-20 tokens, which are the tokenized stocks purchased. The tokens keep the same value as any stock bought in the open market.
The distinction between tokenized stocks in DX and other stocks is that they exist in the blockchain, written during the time of stock purchase. Tokenized stocks are also eligible for dividend payouts issued by the respective company.
Further, users can transform their tokenized stocks easily into another cryptocurrency, sell them or use them in PrimeXBT to trade.
The increased use of crypto coins has inspired giants like PayPal to incorporate the most traded coins in their payment platforms. PayPal enjoys access to millions of merchants all over the world—a situation that might encourage the use of crypto to buy stocks anywhere else in the world. NASDAQ tokenized stocks are a strong start, which might gain ground when more platforms onboard the idea.