The last couple of months have seen increasing dynamism in blockchain technology, as numerous companies, financial institutions, banks, and individuals have decided to invest in the blockchain boom. Despite all the potential, it can oftentimes be difficult for someone just starting out to get a slice of the pie and carry out an investment in this market. Therefore, in this article, we will cover a total of three ways that one can invest in blockchain technology.
1. Purchase digital currencies
You’ve probably heard about and even considered this method already. However, oftentimes people avoid buying digital currencies, as many deem them untrustworthy due to volatility issues. However, the reason digital currencies don’t work by the same rules as other investment vehicles is because they revolutionize the current financial system. Bitcoin doesn’t need institutional backing to be successful, and this is definitely clearer now that its price has skyrocketed. This is mostly due to the laws of supply and demand: as Bitcoin has a limited supply and a demand that grows bigger and bigger by the day, its value is bound to grow. Learn to stop being afraid of volatility, as each decrease in value often leads to an increase shortly afterward. Stockpiling cryptocurrencies such as Bitcoin, Ethereum, and other altcoins can be a smart investment move, as with time, value increases can provide a high return on investment.
2. Consider investments in ICOs
While initial coin offerings are high-risk investments due to the current lack of regulation, if successful, investment yield could be considerable. For those who don’t know, ICOs are a form of crowdfunding adopted by startups in the digital currency market meant to raise capital quickly. Coins are pre-mined and then sold for capital, which is then reinvested by the company in their project. Once a project is active and deemed successful, the value of pre-sold tokens can increase. From that point on, investors can either sell their tokens for a profit or use them to take advantage of services being offered. Either way, be sure to do your research first, as the majority of ICOs out there lack actual use cases.
3. Stocks, start-up ventures, and angel funding
Perhaps one of the less risky methods of getting involved is to purchase stock originating from companies that are preparing to launch blockchain-based services. Another way would be to invest in startups not issuing ICOs, yet which are involved or have projects in the blockchain industry. This way, if successful, not only will you own a part of the company, but in the case of stock purchases, you’ll also be paid dividends.
Due to the increasing popularity of this market, it is very likely that the payoff for investors with varied blockchain portfolios, regardless of the investing method utilized, will be huge.