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How To Invest in Blockchain?

BitForex Editor
Sep 07, 2020

Blockchain has been the rave recently but contrary to what some people assume, blockchain technology has been on the block-long before now. The story dates back to twelve years ago when a person or group by the name, Satoshi Nakamoto published a report on bitcoins. The concept of the technology was that transfers could be made between two parties and both parties would be able to verify the transfer without having to involve a third party.

Not too many people saw the value of exploiting such a system and to date, many people still do not see any reason why they should utilize this technology or invest in it. However, the blockchain industry has withstood the neglect and rejection and gone on to thrive regardless. This technology is now being employed in several institutions including cybersecurity organizations and banks. In no time, the industry would become highly saturated and the early adopters would be grateful to have invested early enough.

How Does Blockchain work?

Generally, blockchain is defined as a “is a distributed, decentralized, public ledger” and this definition alone is enough to discourage non-tech lovers which are understandable but we would be breaking it down to simple terms here. When we talk about blockchain, we are simply referring to a series of blocks linked together in a chain-like format. Actually, it is a tad more complex than seeing it as just some Lego blocks joined together.

A chain consists of multiple blocks and each block is unique so no two blocks can be mistaken or mixed up. Before entering into a chain, every block is assigned a specific identity to differentiate it from the others and these blocks contain valuable information. If the block is being generated in a bank transaction, it can hold the name of the account holder, the account number, the holder’s private details, and the content of the account. All these pieces of information may not be stored in the usual number and text arrangement as they would be when written on paper because the blocks use an algorithm to record information. So, a person’s real name could be stored as some other unique name along with other details.

After a transaction is completed (blocks can only be generated when there is a transaction), the block verifies all information and stores it on its system without human intervention. This is one feature that makes it a lot different from our conventional record systems. When verification is complete, the block is then hashed—given a unique identity—before it is passed onto the chain.

6 Ways to Invest in Blockchain

Since blockchains are not physical assets that can be purchased, stored, and left to mature, one would wonder how it is supposed to be an investment opportunity. If this is you, then simply read on to see some of the ways that you can invest and earn from the blockchain industry.

1. Exchange-traded Funds (ETF). This option is quite affordable for many who plan to invest in the blockchain industry. This opportunity offers access to numerous platforms where one can invest in with relatively low capital rather than having to purchase stocks at higher prices. There are several trusted platforms for exchange trades but these are a few of the most trusted.

2. Reality Shares NASDAQ NexGen Economy ETF (NASDAQ:BLCN)

3. Blockchain Technologies ETF (TSX:HBLK, OTC Pink:BKKCF)

4. Amplify Transformational Data Sharing ETF (ARCA:BLOK).

5. Investing in stocks. This is a readily available alternative for anyone seeking to invest in blockchain today. Interested buyers would have to source for credible platforms selling stocks and put their money down. Some of the most prominent platforms are:

6. Cryptocurrency. This is a sure-fire way to invest in the blockchain industry although risky. Nonetheless, crypto investors could get lucky enough to hit a goldmine sooner than they expect. One safe way to invest in this is to purchase assets from a centralized exchange service before storing it in a safe wallet for yourself. The most risk associated with storing cryptocurrencies is hacking so you should be extra careful with the storage system you use.

Reasons for Investing in Blockchain

If you are still in doubt as to why you should lay down your money for something that is still picking up pace, then these are some points you should take note of:

1. Low risks involved. When you save your money in a bank, you can expect that the money should be available to you whenever you need but if the bank gets closed down or the government decides to freeze the assets, then your money wouldn't be readily accessible to you anymore. At that point, there is little to nothing you can do to salvage your hard-earned cash but this is not the case with blockchain. Your investment is not handled by humans and thus, cannot be controlled by them.

2. Impressive liquidity rates. The best part about investing in cryptocurrency is that you can purchase the assets at any time and sell them off at any time without a loss. There are always buyers ready in the market so you know that you are not taking a risk that cannot be handled.

3. High potentials. Saying that cryptocurrency or blockchain would bring you a ton of money in the first few weeks of investing could be an overstatement but there is no denying the fact that the system has high potentials. Experts currently predict a sharp increase in the industry which would mean big profits for investors especially the long-term investors.

Investing in blockchain technology is something you shouldn't sleep on in 2020 or whatever year it is you're reading this. The prospects are really high and early investors stand a chance of smiling to the bank—or at their crypto wallets—every day.

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