While blockchain technology is generally considered a high-risk investment, it also has the potential to make you substantial amounts of money. Therefore, depending on your circumstances, it’s something you might consider pursuing.
But how do you invest in blockchain technology? What are the methods for doing so, and what are some strategies you can use? Below, we’re going to get into both.
Without further ado, here is how to invest in blockchain technology.
Methods for Investing in Blockchain Technology
There are a number of different ways to go about investing in blockchain technology. Some of the most prominent methods include the following:
Purchase Cryptocurrency During Presales
When a new cryptocurrency is created, it is generally first made available at a pre-sale. This enables investors to get their hands on the new currency before it’s made viable.
There are numerous benefits to purchasing cryptocurrency at this time. For instance, there’s a huge volume of cryptocurrency available. This enables you to maximize your holdings and therefore gives you the best potential return on investment.
Of course, there’s also a potential of the cryptocurrency gaining no traction, and therefore causing you to lose substantial amounts of investment money. It’s a risk, but one with a potentially huge reward.
The specifics of buying during a pre-sale differ based on which pre-sale you’re buying from. That said, they usually entail joining a cryptocurrency exchange and setting up a crypto wallet with that exchange.
Invest in Cryptocurrency on an Exchange
You don’t have to purchase cryptocurrency during pre-sales (though it could be advantageous to do so). You could instead purchase it after it’s made available through one of many cryptocurrency exchanges.
There is no shortage of cryptocurrency exchanges out there, from Binance to Robinhood to Coinbase and more. Each of these comes with its own set of fees and regulations. However, they all enable the same: the ability to buy cryptocurrency.
When using these exchanges, you’ll need to create an account and open a crypto wallet. Once you’ve done that, you’ll be able to invest in everything from Bitcoin to Ethereum to a variety of other cryptocurrencies.
Buy Blockchain-related Stocks
Another option is to buy blockchain-related stocks. These are stocks for companies that work with blockchain. Such companies run the gamut from cryptocurrency exchanges to payment processors to data mining hardware companies and more.
Blockchain technology is undoubtedly poised to grow in the future. Therefore, many of these companies are a safe bet. Obviously, there’s some guesswork involved. However, if you put your money into a winning company, you could end up receiving huge returns on your investment.
Now, how do you go about buying blockchain stocks? There are a number of apps and software you can use. These include but aren’t limited to Webull, E*Trade, TD Ameritrade, and Stash, to name just a few.
Regardless of the platform you use, be sure to do ample research before buying. The more informed you become about different companies, the likelier you are to make a good investment.
Buy an Exchange-traded Fund
You can also go about this by buying an exchange-traded fund or an ETF. This is a fund that invests with blockchain companies, and therefore gives you the ability to get returns on said investments.
This is a good strategy for those who don’t want to subject themselves to a great deal of research. It essentially entails leaving the task to someone else, while also ensuring that your blockchain portfolio is diversified. This reduces risk and gives you the best chance possible at favorable overall returns.
The tradeoff here is that you don’t have the potential to get as much back on your returns. So, while it’s easier and less risky, it’s less fruitful overall.
There are a number of exchange-traded funds out there. That said, Amplify Transformational Data Sharing ETF and Global X Blockchain ETF are two of the best options.
Crowdfund a New Cryptocurrency
When a new cryptocurrency is being created, its developer needs funding to help solidify it as a viable option. This funding generally comes from a wide array of funders, one of which could be you.
How do you get involved in crowdfunding for a new cryptocurrency? By identifying an ICO or Initial Coin Offering. This is essentially an event during which a developer accepts funding in exchange for their cryptocurrency.
You can locate ICOs by simply Googling “ICO drops”, “ICO calendar” or “upcoming ICOs”. This will give you a number of links, most of which will lead to ICOs that are about to open.
Once you’ve identified these, it’s as simple as showing up to them when they drop and following the rules. You’ll provide some form of currency in exchange for the cryptocurrency that’s being developed.
Another option is to purchase NFTs. These are known as non-fungible tokens and they are essentially digital assets. They include everything from memes to images to GIFs and more.
Because these are stored on a blockchain, they can’t be duplicated. So, in the words, when you buy an NFT, you’re buying something completely unique.
Some NFTs sell for substantial amounts of money. Others cost no more than a few US dollars. All have the potential to grow in value over time.
You can purchase NFTs on many blockchain marketplaces. Two of the more popular marketplaces include Binance and Coinbase.
Win Cryptocurrency By Playing Games
One last option for investing in blockchain technology is to win cryptocurrency by playing games. There are a number of different websites that offer this capability. You play games on these platforms and, as you level up, you are awarded various types of cryptocurrency.
Some of these websites will award cryptocurrency in exchange for taking surveys. Literally, all you have to do is answer questions and you’ll be given cryptocurrency.
This is a decent way to get started in crypto trading. Once you’ve obtained some cryptocurrency, you can set out to make some smart investments. And it happens at no initial cost to you.
In addition to awarding coins in exchange for winning games, some of these platforms even allow you to build interest with them. So, in other words, if you leave your coins on these platforms, you will receive more and more coins over time.
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Why Invest in Blockchain?
We’ve laid out some of the ways in which you can invest in blockchain. Now, let’s discuss why you should invest in blockchain. What makes blockchain a good investment?
Blockchain Has the Capacity to Make a Company More Efficient
First and foremost, blockchain technology has the capacity to make a company more efficient. The more efficient a company is, the more money it will make as well.
This makes it highly valuable to companies the world over and makes it something that they’re likely to utilize in spades over the foreseeable future. This, of course, means that blockchain is likely to grow. And if it’s going to grow, it’s a good investment.
Blockchain Allows for Quick Scalability
Another reason to invest in blockchain technology is that it allows for quick scalability. Companies can quickly grow their networks and payment processing systems by using blockchain technology. This makes it highly beneficial to companies of all kinds.
In the coming years, you can expect blockchain technology to be used not only by large companies but by startups as well. The more companies that are using it, the more valuable blockchain stock will become.
Digital is Here to Stay
Digital has been here for a while now and it’s not going anywhere anytime soon. Therefore, it’s only natural that blockchain technology would thrive.
This is particularly true seeing as it ties in perfectly with cloud computing, artificial intelligence, and, of course, e-commerce. Companies are already starting to utilize blockchain technology and there’s no reason to believe that this will be reversed. You should strike while the iron is still hot.
Now That You Know How to Invest in Blockchain Technology . . .
Now that you know how to invest in blockchain technology, you might be ready to dip your toe into the water. If so, you’re in the right place. Cointiply is a great way to get started.
Here at Cointiply, you can play games as a means of earning cryptocurrencies. Once you’ve earned them, you can invest them through crypto exchanges as a means of getting bigger returns.
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