It’s an exciting time for blockchain stocks and investments right now. Interest in blockchain is skyrocketing worldwide. Likewise, interest in cryptocurrency is also higher than ever. Despite the popularity, volatility in the crypto markets is unlikely to go away any time soon.
The best crypto investment usually revolves around the blockchain. A lot of misconceptions still exist around what blockchain is. Blockchain is a public ledger, completely digital, that records transactions. All information is recorded in a block, hence the name.
This information is digitally verified. When adding it to the blockchain, everything is given its unique identity number. The transparency makes it easy for developers to employ blockchain to create new currency units, thereby making blockchain a cryptocurrency goldmine. It can easily create new crypto coin and successfully scale cryptocurrencies.
Brands like Walmart, Starbucks, and governments are looking at ways to use blockchain technology. If corporations and governments invest in the blockchain space and reap the rewards, there’s no rule saying you can’t. Here are the best ways to invest in blockchain.
Advantages of Blockchain
Before we dig into the nitty-gritty of how to invest in blockchain, let’s look at the benefits.
- Experts are predicting a dramatic effect on businesses. From brick-and-mortar stores to eCommerce, diverse blockchain applications help companies be more efficient and increase profitability.
- Blockchain is already getting significant attention from investors and tech companies. They have evaluated ways to integrate blockchain technology to make service faster and more proficient.
- The development of blockchain has sped up in the past two years of COVID-19 as the world moved towards working remotely. Many use the Internet for everyday transactions that we’d typically do in-person.
Disadvantages of Blockchain
There are risks in blockchain investing. Although blockchain is developing exceptionally quickly, an investment in the wrong place could be dead in the water in a matter of months.
- There are a lot of new cryptocurrencies built on blockchain. Not all will succeed. Investing in a crypto coin does not guarantee growth. Many fail and that will continue to be the case.
- If you aren’t investing long-term and need your money withdrawn quickly, you’re at the mercy of a volatile cryptocurrency. Taking your money out at the wrong time could mean losing your principal. It happened to many who weren’t investing for the long term.
Strategy #1: Directly Buy Cryptocurrency
The easiest way to invest in the blockchain is to buy cryptocurrency directly. If you invest right, the growth can be unparalleled to any other investment. You can do this investing via a Bitcoin machine near me and you. There are hundreds across the country. You can also go through an online exchange or use peer-to-peer transactions with similar processes.
This direct investing could also apply to companies developing blockchain technology for themselves. You can invest through businesses like Walmart, PayPal, VISA, Mastercard, and other corporations in the financial sector.
Strategy #2: Buy Shares of a Cryptocurrency Trust
Another option is to buy shares of a cryptocurrency trust. Bitcoin trusts allow investors to access cryptocurrency through brokerage or retirement accounts. Quick and straightforward, you won’t need to do anything exceptionally advanced or time-consuming.
These trusts periodically sell limited private shares to accredited investors. They may later sell those shares directly through public markets. This method circumvents the difficulties of owing the actual digital crypto itself.
Strategy #3: Buy into an Exchange-Traded Fund (ETF)
An ETF invests in shares of companies with exposure to blockchain technology. This fund offers investors lower cryptocurrency ownership costs and simplifies the process of crypto investing. If you already know what it’s like to buy stocks, ETFs mimic that experience.
More and more cryptocurrency ETFs are on the rise. It is trendy for everyday investors to seemingly dip their toes into long-term crypto and blockchain investing without a fundamental understanding of anything.
Strategy #4: Buy into a Crowdfunded New Crypto Coin
Lots of new cryptocurrencies are released every year using blockchain technology. They typically run an initial coin offering, or ICO, through crowdfunding. It allows developers to raise money and gives their crypto coin a fair start.
You may find it tricky to zero in on what’s a good blockchain investment. This method is only for the people who are comfortable doing lots of research. If you keep tabs on what’s happening in the blockchain world, you will discover new blockchain projects developed every month. If you invest in the right one early, the sky is the limit.
Strategy #5: Invest in the Financial Services Sector
Many financial services brands are beginning to look at blockchain and cryptocurrency. They evaluate the feasibility of incorporating blockchain into their day-to-day operations. PayPal allows payments from Bitcoin now. Square allows for buying and selling of Bitcoin from its wallet. Mastercard and VISA partner with different blockchain start-ups to upgrade their payment networks.
There are so many assets in the financial and tech worlds taking close looks at how blockchain can benefit them. If you can invest in a blockchain start-up at this speculative phase, it’s a stable investment strategy with potentially strong growth ahead.