Avoid the Crypto Hype, Buy This ETF Instead
Tired of election news? Me too.
So let’s talk about some news going under the radar for a second.
Last month, online payments company PayPal (Nasdaq: PYPL) rolled out a program to allow its users to buy and sell cryptocurrencies — things like bitcoin and ethereum.
A small number of its customers got a notification that they could now invest in four different kinds of cryptos — all through their regular PayPal app, no special permissions necessary.
We’ve talked about bitcoin here before. We aren’t fans of investing in hype, especially when that hype is based on almost nothing… most stores still don’t accept cryptos, and good luck paying your rent in bitcoins. Prices in these “tokens” can swing wildly from hour to hour. We don’t recommend our readers invest in them unless they know what they’re doing.
However, many banks are experimenting with the technology behind cryptocurrencies — blockchain.
The financial sector could very well be on the verge of a revolution with this new technology. We won’t get into the weeds of blockchain today, but know that it can be used as a safe way to get money from one place to another almost instantly. (You’ll hear a lot more from us about this in the coming weeks. Stay tuned.)
That means PayPal’s move shows a broader point that we’ve been making in American Investor Today for a while.
Getting in on large trends early is one of the best ways to make money — anywhere, ever.
We’ve talked about how the founders of PayPal were at the forefront of the internet revolution in the 1990s.
They didn’t need to know that online payments would be everywhere one day. All they needed to know was that they were getting in on the ground floor of a massive, far-reaching technology. The internet would become entrenched in the lives of billions of people around the world.
Today, PayPal’s management doesn’t need to know whether bitcoin will be the next big thing. All it needs to know is that the technology behind it is the latest frontier in the global financial system.
It doesn’t take a genius to see that giving everyday people access to this new tech is going to be big business one day. The company is investing in a large, multi-decade trend and sitting back to let the profits come in.
This is exactly the strategy we talk about in American Investor Today.
Again, we can’t recommend our readers invest in cryptocurrencies. But one of our favorite ways to get exposure to massive technological trends like this is with the Vanguard Information Technology Index Fund ETF Shares (NYSE: VGT). The fund invests in companies at the forefront of this kind of innovation — including PayPal.
Even better, our team thinks companies like this will prosper not only through this rattled election season, but long after our economy fully recovers…
- Alpha Investor Managing Editor Lina Lee expects technology to continue to do well even after the pandemic is over. These are thriving industries like streaming, e-commerce and “Subscription of Everything” stocks. But no one is talking about this two-track recovery.
- These technology trends won’t be the only ways to profit in the coming years. There’s another, less well-known strategy that our team wants you to see right now.
- Meanwhile, as Election Day has turned into “Election Week,” our readers knew to not panic. Click here to read why.
- And despite the ranting and raving on the news, Americans are actually more generous than ever. Don’t believe the talking heads. The numbers say our country is one of the most giving places in the world.
Managing Editor, Winning Investor Daily
P.S. As technological trends continue to make millionaires around the world, my colleague Charles Mizrahi wants to make sure that every American has the chance to get in on these investments. He’s been in the markets for nearly four decades and he knows a massive opportunity when he sees one. He has his eye on one new technology in particular. In fairness to his subscribers, we can’t list his favorite companies here. But you can click here to find out more.