How to invest in blockchain: the complete guide: With the world changing as fast as a pace, it’s getting harder and harder to keep up with technology. Twenty to thirty years ago, “the Internet” was still a mysterious and awe-inspiring subject. These days, most of us probably couldn’t imagine a day without it. What if, all those years ago, investors were wondering “how to invest in oil?” People now seem to be wondering how to invest in blockchain.
If you were to invest in blockchain right now – right now – how would you do it? Well, if you have no idea (or maybe do some additional research) – you’ve come to the right place!
Blockchain can be a difficult subject, so we’ll try to slow it down and start from the start. We’ll cover the basic definitions in order to be up to the task – then dive straight into stocks and blockchain technology investments.
Introduction – Everything about blockchain
So let’s start at the top. If you are reading this guide, chances are you will know exactly what a blockchain is. But just to be sure, let’s quickly recap.
In its simplest form, blockchain is an ever-growing list of information. This information is made up of blocks – all of these blocks are linked to each other using cryptography. They contain various information – time stamps, specific encodings, and most importantly for a crypto enthusiast – information about the various transactions that occur inside.
The blockchain allows the two parties (between whom the transaction takes place) to avoid a third party – more often than not, that would be a bank. The transaction data is kept encrypted in blocks which are quite difficult to modify and dabble.
Since 2014, blockchain 2.0 has emerged. This is a more sophisticated version of its predecessor – blockchain 2.0 allows the user to create more complex smart contracts, which in turn allow for more secure and better optimized transactions.
Invest in blockchain
DISCLAIMER: Before making any type of investment, you should always consult a financial expert or advisor. Any kind of transaction or investment you make is at your own risk.
Now that we’ve got that out of the way, we can go straight to investing.
First of all, why invest in blockchain? The question seems simple enough, but there are many different reasons people choose to put their funds in the hands of crypto.
Large companies tend to take the lead in blockchain investments. Most of these companies are based in the United States – only the fifth investor is from Beijing, China (Node Capital).
There are many reasons for people to invest in blockchain. Some see a bright future in the crypto world – these people tend to think cryptocurrencies are the way to go and eventually they will eliminate other types of currencies in general.
Others are more drawn to the financial side of the matter – cryptocurrencies tend to fluctuate greatly in price. Someday a specific crypto might be worth a hundred and then skyrocket overnight. These types of spikes often rattle crypto communities around the world – there are countless articles out there that talk about and give examples of how much money you should have invested in Bitcoin when it became a millionaire today.
Again, one could think of many different reasons for investing in blockchain. But when you finally decide to empty the bank and rush to the nearest Blockchain Trading Booth, you suddenly realize that such a thing does not exist.
So … How do you invest in blockchain, then?
Method # 1 – Inventories
Stocks are probably one of the most common thoughts that popped up in someone’s head when trying to figure out how to invest in blockchain. And for good reason!
Stocks are actually a great place to start if you’re thinking about blockchain investments. Now, I’m going to tell you about three solid places worth investing in when it comes to blockchain tech stocks.
360 Blockchain Inc
360 Blockchain Inc is probably one of the first companies that comes to mind when thinking about how to invest in blockchain technology.
According to their official website, 360 Blockchain’s mission is to give blockchain technologies their own capital in order to create the best opportunities for their shareholders. They are based in Canada and are today one of the few CST-based companies to post their annual revenues for public display.
What makes 360 Blockchain unique as a business is that they invest exclusively in blockchain. Another thing to keep in mind if you are thinking about investing in blockchain and if this business seems right for you, is that it is also focused on investing in technologies that use blockchain in new ways. and focused on innovation.
Above I have included 360 Blockchain stock information from the past 6 months. As you can see from the graph, the business is in a mild crisis. This is not at all when you take into consideration the fact that over the past few months, most cryptocurrency prices have been at an all-time high.
All in all, if you are thinking about how to invest in blockchain technology, 360 Blockchain Inc is definitely worth checking out. Even if their stock is currently in a crash period, it would probably be a good idea to keep an eye on them – you never know when they will be back.
IBM are the owners of their own blockchain technology, which they claim is superior. The company joined the Hyperledger Project (a collaborative open source project that aims to further develop blockchain-based ledgers) to help develop and advance earlier versions of the blockchain.
The company emphasizes how excellent and profitable their blockchain technology is for businesses. They recently presented a trial version of the blockchain as a platform for banks. It’s obvious that IBM is serious with what it does and really believes in the future of blockchain – after all, its entire business model is based on it.
I added a stock chart so you can better see the value of the company’s shares over the past six months. It is clear from the graph that IBM takes its business model seriously and has the numbers to prove it.
In short, IBM has decided to revolutionize businesses with its own blockchain technology. If they keep up with this pace, it might be worth considering when thinking about how to invest in blockchain.
Hive Blockchain Technologies
Hive Blockchain Technologies (from now on: Hive) is a fairly common choice when thinking about how to invest in blockchain technology. As they themselves put it, Hive is “building a bridge between the blockchain industry and traditional capital markets” ( hiveblockchain.com/corporate ).
The company currently operates four segments (two in Iceland and two more in Sweden). These sectors are mainly used to mine Ethereum. Hive takes great pride in trying to be environmentally friendly. The company has built its sectors on a cold jurisdiction in order to minimize the effects of major cooling machines on the environment.
Hive is dedicated to building and developing blockchain infrastructure. They are trying to accomplish this by partnering with Genesis Mining Ltd. and by mining cryptocurrencies 24/7. At the time of writing, the company is only mining Ethereum. However, they are also looking to expand into Bitcoin mining.
As with 360 Blockchain, Hive’s stock prices have also been going down for some time now. Again, this makes sense when you look at recent prices for Ethereum (the company’s cryptocurrency).
Even if Hive shares fall, it’s probably worth keeping an eye on this company for long-term investments. Hive has major investors and advisers on its side. This could cause things to turn on the positive side at any time for people looking to invest in blockchain.
Method # 2 – Cryptocurrencies
If you’re thinking about blockchain investments, but stocks aren’t really your thing, the second (and most common) option would be to simply buy cryptocurrency.
Yes. I’m serious.
Although often overlooked by people who think about how to invest in blockchain, this method is actually quite popular. Even though people in cryptocurrency communities typically buy cryptos for other reasons (i.e. trading), it’s actually a pretty famous way to invest in blockchain.
I’m going to tell you about three of the most commonly invested cryptocurrencies, just so you can get a clearer idea of what I’m talking about. Maybe this will be the entry point for you when considering investing in blockchain.
Bitcoin is probably the most well-known cryptocurrency on the market. It is considered the OG coin, having held its ground longer than any other coin in the area.
Bitcoin has thousands and thousands of enthusiasts and investors. This crypto has been a huge hit over the years, thanks to its notoriety and – what appears to be – an overnight explosion in the mainstream.
It is clear from the chart above that Bitcoin is in a downtrend at this point. Despite this fact, many people still believe wholeheartedly in the future of the coin. This could be one of the main factors in the reemergence of this crypto.
Another very popular cryptocurrency, Ethereum takes second place in the market after Bitcoin. Much like its competitor, Ethereum is a very popular and well-known cryptocurrency in the crypto world.
A strong quality of ETH is that many new startups and ideas are based on its network. BAT (Basic Attention Token) is a prime example. For this reason, many people believe that Ethereum will one day overtake Bitcoin in the market position ranking.
Ethereum is unraveling the same story as its cryptocurrency colleagues – for some time the price has fallen. This could be due to a number of different factors, but one thing is certain: ETH is not the only one experiencing this drop.
All things considered, Ethereum has a strong following to date who believe in the future of this crypto. If you are thinking about investing in blockchain, you would probably do well not to forget about this coin.
Yet another very popular cryptocurrency, Ripple has held its own for quite some time now. It has managed to keep up with the biggest and most well-known cryptos in the market.
One of the main reasons people looking to invest in blockchain turn to Ripple is its market price. At the time of writing this article, the price of an XRP was $ 0.28. This makes the coin very popular among people who may not have the funds to go big, but still want to get into the world of crypto investing.
Ripple’s price has been dropping since the start of 2018. It should be noted, however, that the process of crashing this coin has been very smooth and without sudden and unexpected spikes.
With XRP still in the news for different reasons, it wouldn’t be crazy to say that this coin could start to rise again in the future.
Method # 3 – Startups
While not as obvious as the other two, this method is actually quite popular if you are thinking about investing in blockchain.
Over the past few years, many startups have surprised the world with their innovative ideas and goals. Many of them had one simple and common thing – blockchain.
When looking to invest in blockchain, always keep an eye out for startups that are built and focused on blockchain technology. A good example of this would be the previously mentioned BAT (Basic Attention Token).
This token was built around the Ethereum network. It currently works in the Brave browser but is growing. BAT aims to eliminate any fraud that occurs between publishers, advertisers and users.
It really is an ambitious project, but the BAT team worked hard and the results are clearly noticeable!
This is just an example of a blockchain based startup. With a little digging, you can come across many different projects. Who knows – maybe one of them is exactly what you were looking for?
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How to invest in blockchain? – Conclusion
Blockchain (and the cryptocurrencies that surround it) is becoming an increasingly popular, almost unavoidable topic. It is only natural that investors will turn to this topic and start to find out how to invest in blockchain.
There are many different ways to start investing. In this tutorial, I’ve only shown you three – there’s a lot more to choose from if you want.
So to answer the “how to invest in blockchain?” Bug question, I would say it depends on the person and their wants and needs. Everyone is different, and if you choose to dive into the world of crypto, I wish you good luck!
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