Over time, we are seeing crypto become more and more mainstream, and this also means more ways for investors to gain exposure to cryptos like Bitcoin, Ethereum and Solana.

One of my favorite ways to buy into the crypto scene is to use ETPs like ETFs, ETNs and ETCs, depending on what’s available and what I’m looking for. I’ll be defining these shortly and the differences between them.

Throughout this article, I will be referring to Bitcoin tracker products, but everything applies to trackers of other cryptos as well.

Why Buy a Bitcoin Tracker?

For a myriad of reasons that I’ve previously discussed on this blog, you might not want or be able to buy Bitcoin and crypto from a crypto exchange – wiring fiat currencies and then trading that money for cryptos such as Bitcoin and Ethereum.

Let’s say you want to buy Bitcoin, but you don’t want to sign up to a crypto exchange and buy (and store) the cryptocurrency directly.

Or perhaps your bank prevents you from transferring fiat currencies to the well-known exchanges, effectively blocking you from doing what you want to do with your money. That’s a discussion for another article, although I think that this ridiculous situation with banks is just temporary and will not be an issue in a few years’ time at max.

So what are your alternatives?

One way is to buy Bitcoin in a peer-to-peer fashion, using Hodl Hodl. However, this is not an ideal way to proceed if you want to buy substantial amounts (say €10,000 or more in Bitcoin).

Thankfully, there is now a very easy way to get crypto exposure, using traditional stockbrokers. Banks won’t hassle you, as from their perspective, you are just transferring money to a regular stockbroker.

In the case of an eventual sale, and subsequent withdrawal of fiat into your bank account, their reasoning is the same. It’s your regular stockbroker, no foul play suspected, compliance boxes checked, all good to go.

What about big hedge funds and institutions? According to research done in 2021, institutional investors in Europe prefer exchange-traded instruments over buying crypto directly. Over half (53%) use ETPs to access bitcoin, while about a quarter (23%) use structured products and only one in five (21%) use direct investment.

To recap on why you would want to buy crypto through a stockbroker:

• Your bank/s refusing to allow transfers to/from crypto exchanges
• Not trusting yourself in being able to self-custody your cryptos
• Buying through a company – audits and accounting becomes complex when trading through exchanges.
• You’re an institutional investor

All are very valid reasons for being unwilling or unable to use crypto exchanges like Coinbase and Binance to buy cryptos.

The alternative lies in using your regular stockbroker to buy into crypto funds.

It’s time for some definitions.

The global term for all these products is Exchange-Traded Products (ETPs). There are several types of ETPs, like:

• exchange-traded funds (ETFs)
• exchange-traded notes (ETNs)
• exchange-traded cryptocurrencies (ETCs)

When you start looking for crypto products you can buy on stock exchanges, things can get quite confusing. In Europe, when you see products listed as ETPs, the legal structure is actually an ETN. You will also find ETFs and ETCs, but ETNs are definitely the most common.

Bitcoin and crypto ETFs are not yet available in Europe and the U.S., although they are available in Canada and Brazil.

When compared to the U.S. however, Europe offers much easier access to crypto products through ETPs – this is done through ETNs, and ETCs to a lesser extent. These ETPs offer exposure to the cryptocurrency market without the concerns of custody or owning the underlying asset. By investing through an ETP, investors can benefit from institutional-class custody, simplified trading through a standard brokerage account, greater liquidity, and transparent trading.

Unlike ETFs which are considered investment funds, ETNs and ETCs are structured as an unsecured debt, meaning that the issuer – usually a bank – can potentially not be able to repay the principal and default the bond.

So, once you login to your favorite broker, you need to find these funds and simply buy their stock. Some of the most famous ones (and their country of domicile) are the following:

• BTCetc – Physical Bitcoin ETC – Germany
• WisdomTree Bitcoin ETP (BTCW SW) – Jersey
• 21Shares Bitcoin ETP (ABTC SW) – Switzerland
• VanEck Vectors Bitcoin ETN – Liechenstein

The BTCetc Physical Bitcoin ETC from HanETF is an exchange-traded cryptocurrency (ETC) that tracks the price of Bitcoin. This ETF company coined the term exchange-traded cryptocurrency (usually the term ETC refers to exchange-traded commodity) and comes with the extra benefit that you can convert and withdraw to actual Bitcoin whenever you want, subject to some fees. This is the biggest European Bitcoin fund by a significant margin, signifying that investors are attracted by the convertibility offered by this setup. It also has the highest TER at 2.0% p.a. You can find it traded on several countries’ exchanges, giving you the flexibility to invest in EUR, USD or CHF. From my understanding, this ETC is identical to an ETN save from the ability to convert to Bitcoin on demand. Custody is provided by BitGO.

The 21Shares Bitcoin ETP works with fully collateralized debt, meaning that it is 100% backed by Bitcoin held in an independent trust for investors, while custody is provided by Coinbase and possibly Kingdom Trust, Bitcoin Suisse and Copper. All of them are top-tier custodians. This ETP is regulated and domiciled in Switzerland. Even though it is 100% backed, there is still a risk of theft, hacking, as well as the need to deduct the costs of the liquidation should any player within this ETP become insolvent. The TER is 1.49%.

The Van Eck Bitcoin ETN is a fully collateralized exchange-traded note that invest only in Bitcoins. Note that not all ETNs are collateralized, making this ETN particularly safe compared to others. The note aims to replicate the performance of the MVIS CryptoCompare Bitcoin VWAP Close Index (MVBTCV Index). The custodian is Bank Frick and the fund is domiciled in Liechtenstein. The base currency is EUR and TER is 1.00%.

My suggested broker for such trades is DEGIRO. I’ve written an in-depth review of this platform earlier so check that out if you want to learn more about this broker.

flatexDEGIRO offers several crypto trackers that follow the underlying performance of digital currencies, such as Bitcoin or Ethereum. There is no need to set up a crypto wallet or use a crypto exchange.

Canadian residents have it better than their US counterparts, as several ETFs launched there in 2021: Purpose Bitcoin ETF (BTCC), Evolve Bitcoin ETF (EBIT), CI Galaxy Bitcoin ETF (BTCX), 3iQ CoinShares Bitcoin ETF (BTCQ), and Fidelity Advantage Bitcoin ETF.

My Favorite Bitcoin Tracker Products

Not all tracker products are created equal. There are a few main questions to ask yourself when choosing a product:

• What’s the size of the fund?
• Who’s the provider?
• What is the total expense ratio (TER)?
• Where is the fund domiciled?
• What’s the replication method?
• What currency do I need to use?

A bigger fund inspires more trust, although you also need to consider how long it’s been on the market. If it’s a newer fund, then I would look at the provider, and if they are well-established with a long track record of solid ETF products, then the fund size would not be that important.

Some reputable providers are WisdomTree, VanEck and CoinShares.

The TER is very important to me. I am fine with paying money to compensate for the storage costs and the ancillary costs of operating the fund, but a 1% difference can make a significant difference in returns over the long-run, especially given crypto’s growth potential. I typically look for an expense ratio of 1% or lower.

Lastly, I want to make sure that they are physically-backed. This means that they for every dollar/euro invested in the fund, they hold the equivalent value in Bitcoin, usually in safe cold storage. This is not usually an issue, as all the tracker products I’ve seen in Europe use physical backing as their replication method.

It’s not a bad idea to split your funds between different providers if they have similar setups. This will minimise the risk in the unlikely event that a provider goes out of business or suffers a catastrophic loss of its physical backing.

Right now, as a European resident, my choice is the VanEck Vectors Bitcoin ETN fund as it has a low total expense ratio (TER) of just 1% per year while being based in Liechtenstein, which is a country whose financial sector I deem to be of sufficient quality. Its base currency is also EUR which is ideal since a good chunk of my savings are typically stored in Europe’s currency, the Euro.

On the other hand, I also use the WisdomTree Bitcoin ETN to diversify between providers and also to be able to invest my USD savings and thus avoid currency conversion costs. The Coinshares Physical Bitcoin ETN would be an alternative – it is a slightly bigger fund with negligibly higher TER but it is domiciled in Jersey instead.

Buying Stocks from a Crypto Exchange?

You might also be interested in doing somewhat of the opposite of what I described in this post – buying stocks from a crypto exchange. This is still a new area in crypto, but there are already some exchanges that offer tokenized stocks that can be purchased with cryptos, as I describe in my post about that subject.

The biggest advantage, in that case, is that you can trade stock tokens 24/7 rather than being limited by the opening hours of the markets. This is especially useful if important news comes out during the weekend, or you invest through stock exchanges located in a different time zone to yours.

If you’re an investor who prefers owning Bitcoin, Ethereum, etc outright, then just head over to my list of best crypto exchanges and take action from there.

Buy Crypto ETPs on DEGIRO

Investing in stocks, bonds, and ETFs involves risks including complete loss. Please do your research before making any investment.

Cryptocurrencies have made their way to the multi-billion dollar online casino scene. There are many websites active in this space that cover traditional games like blackjack, roulette, and even sports betting.

You also have crypto dice games that operate on a decentralized network via Provably Fair. If this is something that you’re keen to learn more about, this guide explores everything there is to know about crypto betting.

In this article, I discuss the ins and outs of how crypto betting sites differ from traditional gambling platforms – and which providers dominate this sector in 2021.

Before we go into the discussion, here’s a quick list of my favorite crypto betting sites:

• 1xBit
• Betchain
• Betflip
• Bitstarz
• Cloudbet
• Primedice

What is Crypto Betting?

As the name suggests, crypto betting refers to the process of gambling online. However, instead of betting with traditional payment methods like a debit/credit card or e-wallet, you’ll be gambling with a cryptocurrency like Bitcoin, Ethereum, or others.

In many ways, crypto betting sites operate like any other online gambling platform. This is because you will have access to popular games like:

• Roulette
• Blackjack
• Baccarat
• Slots
• Video Poker

In many cases, the above games will be backed by the same regulated software providers that you find in the traditional gambling scene. This includes the likes of Evolution, NetEnt, Microgaming, and Playtech.

Read more: The best crypto trading apps

As such, by playing a crypto betting game that has been produced by one of these providers, you know that a prolonged testing phase has been implemented to ensure the game is 100% true and fair.  On some crypto betting sites, you can also access sportsbook markets and live poker.

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Blockchain, cryptocurrencies, and decentralized finance have gained traction over the past few years and so have lending platforms. Satoshi’s dream of a decentralized economy has morphed into solutions for healthcare, supply chains, agriculture, and many other industries.

Of course, finance remains at the very top with different blockchain-based solutions being developed every day. One such solution is blockchain lending platforms. This article provides a brief comparative analysis of two top crypto lending platforms: YouHodler and Crypto.com.

Overview and General Features

Crypto lending services provide three essential services:

• Supplying crypto assets to earn interest– commonly referred to as annual percentage yield (APY).
• Providing loans.
• Extras, as you will see below.

This segment delves into the three platforms, citing their key features and extra services.

1. YouHodler

YouHodler is an E.U. and Swiss-based FinTech platform (think crypto bank) that allows you to borrow and multiply funds by leveraging financial tools in a relatively secure way. The two-year-old company has followed the yellow brick road right from inception, transforming from a simple lending platform to a top APY provider while accruing support from mainstream cryptocurrency institutions such as Ledger, Elliptic, and Ciphertrace.

Here are the key features:

Savings

Instead of hodling your assets in dormant wallets, you can deposit them into your Youhodler savings account and earn interest from the get-go. Users can deposit a minimum of $100 (in crypto equivalent) and withdraw at any time, including the profit earned.

At the time of writing, up to 22 coins are supported on the platform, including BTC, ETH, UNI, BNB, and stablecoins like USDT, USDC, TUSD, HUSD, PAX, and DAI.

APRs on stablecoins are as high as 12%, while yields on BTC, ETH, and UNI are 4.8%, 5.5%, and 7%, respectively.

Yields are remitted into your account weekly once you deposit your coin. YouHodler compounds your earnings: new gains are compounded on the previous week’s earnings plus capital, making it possible to achieve even more than the APR.

It is important to note that you can only earn these yields if you withdraw at the end of the week. Additional funds deposited within the week will generate interest in the next week.

Loans

You can borrow fiat currency such as USD, EUR, GBP, and CHF against your crypto assets. The loan-to-value (LTV) ratio is 90%, and you really cannot get that anywhere else. You can also use lower LTV ratios. They support over 20 coins as collateral, and you can borrow fiat currency or stablecoins (as mentioned earlier).

They have unique exit strategies based on the price down limit (PDL)—a “Stop Loss-Esque” feature used to curtail losses and close positions. If your collateral falls to a certain point below the PDL, they hold the right to sell the collateral to close the loan.

You will be notified via email if your PDL drops below 70% of your collateral.

Read more: My in-depth review of YouHodler

If your collateral price rises, you can choose to take profit at a price level. When that happens, YouHodler can sell your collateral, repay the loan and send the remaining amount to your wallet automatically. Interest rates range between 2.5% and 12.5% depending on the loan duration.

Turbocharge

This unique feature enables you to set off a cascade of loans. You can use borrowed fiat to buy crypto assets which can then be used as collateral to secure another loan. Crypto assets available for this feature include BTC, ETH, LINK, BNB, and XRP.

MultiHodl

The Multihodl feature allows experienced traders to multiply funds through a series of processes that mostly involve predicting selected currency pairs’ likely trajectories.

Universal currency conversion

Tying all the previous features together is YouHodler’s universal conversion feature. This allows clients to convert any currency on the platform to any other currency pair without limitations. Fees are reasonable and as low as 0.5% per conversion.

2. Crypto.com

Crypto.com is on a mission to fast-track mainstream adoption of cryptocurrencies. So far, they have done an excellent job: catering to the crypto-initiated, newcomers and merchants using a variety of financial protocols in their full-grown ecosystem.

There are two native tokens, namely MCO and CRO.

• MCO- utility token; used to improve stakes and investment yields.
• CRO- a cross-asset intermediary currency used to settle asset swaps on the chain. You can stake it to earn as well.

Crypto.com’s key features include:

Credit

Like other lending platforms, you can get up to 50% of stablecoins such as USDT, TUSD, and Paxos by supplying BTC, ETH, LTC, MCO, XRP, CRO as collateral. You can also cut your annual interest rate by staking more than 500 MCO tokens. here are the details.

Crypto Earn

With Crypto Earn, you can supply numerous coins and stablecoins to earn interest.

APYs at the time of writing

• On supported stablecoins: up to 12%
• On BTC: 6.5%
• On Eth: 5.5%
• On Crypto.com Coin: 6%
• Other altcoins: 3%

What’s more, you can calculate your credit and earnings with an in-built APY calculator.

Web and mobile wallet support for trading

Crypto.com provides a non-custodial wallet for both android and iOS users to manage their crypto assets. The app contains an in-built Binance-Esque market analysis function that supports more than 200 coins. This enables swift analysis and management of your coins.

You can exchange assets in the spot, margin, and derivatives markets.

Crypto.com’s tentacles extend to DeFi as well. You can set up your wallet, and stake your coins in several DeFi protocols.

Visa cards

By acquiring Crypto.com’s Visa card, you can spend your coins in shops that accept crypto as payment. These cards come in colors, and they are—in ascending order of luxury– Blue, Ruby, Green, Gold, and Obsidian. One that stands out in terms of affordability and juicy features is the Ruby card.

MCO Ruby card

By staking only 50 MCO tokens to get this metal card, you can enjoy the following benefits:

• 2% Cashback on all purchases
• Free monthly Spotify subscription.
• Up to $400 monthly in ATM withdrawals at zero cost.
• $4000 monthly interbank exchange rate.
• Note that you can withdraw your stake at any time, but your cashback benefit will fall to 1%, and there will be no monthly Spotify sub.
• 1 MCO = $3.23 at the time of writing

Security

Each lending platform has different measures put in place to minimize the risk of thefts, employee frauds, and other security breaches.

YouHodler

• YouHodler partners with Elliptic and CipherTrace to monitor transactions, prevent laundering, fraud schemes, terrorism, etc., and LedgerVault insurance protocol to ensure all crypto assets in a $150 million insurance pool.
• Anyone can request 3FA which locks withdrawals unless verified manually by the client.
• YouHodler users a mixture of hot and cold storage wallets to ensure funds are never kept 100% online.

Crypto.com

• They secure 100% of cryptocurrencies in cold storage.
• They are partners with Ledger—a global authority in security solutions for blockchain and cryptocurrencies.
• Like others, crypto assets are insured with a $100 million policy via Arch’s Underwriting at Lloyd’s syndicate.
• They use 2-factor authentication.
• They are verified with several standard information and security management protocols.

Pros and Cons

YouHodler Pros

• They support crypto-crypto and crypto-fiat currency conversions.
• No utility tokens.
• They offer up to 12% APY on stablecoins.
• Weekly compound interest.
• Highly safe and monitored.
• Flexible loan repayment options.
• Immediate withdrawal.
• No credit checks.
• Dispute resolution via the Blockchain Association and the Financial Commission.
• Insurance using Ledger Vault $150 million of insurance
• iOS and Android app
• More transparent than most competitors
• 24/7 customer support

YouHodler Cons

• $100 minimum savings deposit.
• Relatively short track record
• Not available to USA or China clients right now

Crypto.com Pros

• Interest on Crypto Earn is paid daily.
• They support a wider range of supported fiat and cryptocurrencies.
• User-friendly app with market analysis.
• Compound interest on savings.
• Composite metal card with juicy features.
• Low trading fees

Crypto.com Cons

• A minimum deposit of $200
• Unavailable in Switzerland, Malta, and North Korea
• Stablecoin USDT is not supported for US users.
• Significant stablecoin restrictions for Singapore users.

Bottom line

While these crypto-lending platforms keep offering mouthwatering deals, it is important to assess your needs clearly to choose the ideal platform. Recall: individual wallets are not FDIC-insured on none of these platforms; as such, it would be prudent to invest what you can afford to lose.

My current view is that:

YouHodler is best suited for those looking to invest more than $100 to earn APYs weekly, borrow cheap loans for projects, and multiply capital by actively trading using the multi-hodl feature and Turbocharge features.

Crypto.com is best suited for experienced crypto traders looking for diverse investment opportunities all in one place.