April 26, 2019 – Mobile wallet service Abra has finally added the previously announced feature of buying US stocks in exchange for bitcoin and fiat in its app.
Abra users in the Philippines who updated their apps can now add US stocks in their Abra portfolio.
Go to “Manage Assets” on the top right of the app.
Click the US Stocks you like and the tap on “Save”.
The stocks will now show on your dashboard.
How is this possible? Abra calls it “synthetic currency“, which allows users to gain exposure to crypto assets, exchange-traded funds, and even stocks.
For simplicity’s sake, let’s say if the user deposits $100, Abra will immediately convert it to $100 worth of bitcoin in the background, although the app will continue to display the fiat $100.
If the value of bitcoin against the dollars goes up or down, Abra will cover the difference so that the user will always have $100 backed by $100 worth of bitcoin.
With stocks, the process is the same, only that we are buying shares (stocks).
For example, if the user buys 100 shares worth of Netflix stock, with 1 share = $1 (This is just a representation), the 100 shares are worth $100. Since the money is actually converted into bitcoins, then the 100 shares are backed by $100 worth of bitcoins in the background, while the app continues to display that the user has 100 shares worth $1 each for $100 in total.
Now, if tomorrow, Netflix stock becomes $2 per stock, then 100 shares are now worth $200. Because the shares are backed by bitcoins, Abra will put the necessary amount of bitcoins to your account so that your 100 shares (that is) now worth $200 is backed by $200 worth of bitcoins.
Abra confirms anyone can buy these shares of stocks for as low as $5, which opens up the opportunity for people who previously cannot access the US stock market because of regional barriers and high cost of entry. However, it is important to note that there are still risks involved so users must take caution before investing.
Disclaimer: This article is not a piece of investment advice.
This article originally appeared on BitPinas: Abra Now Lets You Buy US Stocks Like Netflix, Disney, Apple, Amazon, Etc
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