Blockchain Investments - A Smart Idea?

By Daniel Zo Blockchain, Investing, Fintech

In a recent article, we talked about the main advantages and disadvantages of investing in bitcoin. While the currency continues to evolve, its underlying technology, the blockchain is seeing an even quicker growth.

With this in mind, blockchain technology can be regarded as one of the hottest trends in the financial market at this moment in time, as it has the potential of completely transforming traditional business models in numerous sectors. Numerous banks, governments and financial institutions have openly discussed about their plans to adopt blockchain technology, which is why more and more people are actively looking for ways to invest in the blockchain boom.

Blockchain

To put things better into perspective, prior to making a blockchain investment, it is important to note the differences from traditional investments. There’s some great news, as opportunities continue to appear on a daily basis, yet the choices that investors make (how much they’re willing to risk), are the main barrier, setting investors apart. Without further ado, here are some of the most popular ways that you can get involved in the blockchain boom.

1. Stockpile bitcoin

Similar to traditional investments, people with capital tend to stockpile on stocks or assets such as gold, prior to a price increase. Based on this, many of the investment principles tend to remain the same. If you’d like to join on the blockchain boom, you’ll probably need some bitcoin. Thanks to supply and demand laws, if bitcoin and blockchain continue to be a success, then chances are that the value of your investment will rapidly grow, thus earning you a decent amount of money.

2. Blockchain Penny Stocks

Unfortunately, many people tend to ignore penny stocks in the blockchain market alongside with their massive potential. As you may already know, other than bitcoin, there are numerous alternative currencies present on the market, all based on the blockchain technology. What makes them different is the fact that most altcoins were developed to compete with bitcoin, by offering new features. With this in mind, certain altcoins have been created to provide increased privacy, allow escrow services and even enable digital asset registries and the possibility to carry out smart contracts. Some of the most popular alternatives include Litecoin, Ethereum and Monero, yet there are many others.

3. Startup Ventures and Angel Funding

As each day passes, more and more blockchain-based startups are launched, each offering a brand new service. As the number of opportunities is quickly growing, if you have access to capital, then investing in these sort of ventures is a great step forward. Providing angel funding will allow you to learn more about the market, and work on taking the company you have invested in to the next level.

4. Blockchain technology investments

At this moment in time, there are also numerous companies focused solely on blockchain technology. Although investing in these can be a bit more risky, investors who have a toleration for higher level of risks can get access to much larger returns. Most companies in this space work to improve blockchain technology, and then proceed to supply it to others.

Based on everything that has been outlined so far, the massive interest that has been generated in this technology, makes it a great investment opportunity that nobody interested in digital currency and the financial market should miss.