Blockchain

How to Invest in Blockchain: The Ins and Outs

How to Invest in Blockchain: The Ins and Outs

With the world moving in as fast as a pace that it is, it’s becoming increasingly harder to keep up with technology. Twenty to thirty years ago, “the internet” was still a mysterious and awe-inspiring topic. Nowadays, most of us probably couldn’t imagine a day without it. And if all those years ago investors would ask “how should I invest in oil?”, now people seem to wonder how to invest in blockchain.

If you were to invest in blockchain right now – at this very instant – how would you do it? Well, if you have no idea (or maybe are doing some additional research) – you’ve come to the right place!

Blockchain can be a difficult subject, so we’ll try to take it slow and start from the very beginning. We’ll cover the basic definitions to be up to par – then we’ll dive straight into the blockchain technology stocks and investments.

Introduction – All About Blockchain

So, let’s start at the top. If you’re reading this guide, chances are you probably know just what a blockchain is. But just to be sure, let’s have a quick recap.

In its most simple form, blockchain is an ever-growing list of information. This information is made out of blocks – all of these blocks are linked together with each other using cryptography. They contain various information – timestamps, specific codings, and most importantly for a crypto enthusiast – information on the various transactions that happen within.

Blockchain allows the two parties (between whom the transaction is happening) to avoid a third party – more often than not that would be a bank. The data of the transaction is kept encrypted within the blocks which are quite hard to modify and dabble with.

As of 2014, blockchain 2.0 has come into existence. 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 safer, better-optimized transactions.

Investing In Blockchain

DISCLAIMER: Before making any sort of investment, you should always consult with a financial expert or advisor. Any sort of transaction or investment that you make is purely at your risk.

Now that we’ve got that out of the way, we can jump straight into investments.

First of all, why would someone invest in blockchain? The question seems simple enough, but there are many different reasons why people choose to put their funds into the hands of crypto.

Big companies tend to take the lead when it comes to blockchain investments. Most of these companies are based in the USA – only the 5th biggest investor comes from Beijing, China (Node Capital).

Individual people have a wide variety of reasons to invest in blockchain. Some see a bright future in the crypto world – these people tend to think that cryptocurrencies are the way to go and that eventually, they’ll eliminate other types of currencies in general.

Others are more attracted to the financial side of the matter – cryptocurrencies tend to fluctuate heavily in price. One day-specific crypto might be worth cents, then skyrocket in price overnight. These types of spikes often rattle up the crypto communities worldwide – countless articles are talking about and giving examples on how much money you would have had to invest in Bitcoin when it first came out to be a millionaire today.

Again, one could think of many different reasons to invest in blockchain. But when you finally decide on emptying your piggy bank and rushing to the nearest “Blockchain Trading Booth” you suddenly realize that such a thing doesn’t exist.

So… How to invest in blockchain, then?

Method No. 1 – Stocks

Stocks are probably one of the most common thoughts that pop into someone’s head when they are trying to figure out how to invest in blockchain. And for a good reason!

Stocks are a pretty good place to start if you’re thinking about blockchain investments. Now I’m going to tell you about three solid places that are worth investing in when it comes to blockchain technology stocks.

360 Blockchain Inc

360 Blockchain Inc is probably one of the first firms that come to mind when thinking about how to invest in blockchain technology.

According to its official website, 360 Blockchain’s mission is to empower blockchain technologies with their capital to create the best opportunities for its shareholders. They are based in Canada, and today are one of the few CSE-based companies that post their annual revenue for public display.

How to invest in blockchain - Blockchain chart

What makes 360 Blockchain unique as a company is that they invest exclusively in the blockchain. Another thing to keep in mind if you’re thinking about how to invest in blockchain and if this company seems to suit you is that they also focus on investing in technologies that are using blockchain in some sort of new, innovation-driven ways.

Above I’ve included the 360 Blockchain’s stock information from the last 6 months. As you can see from the graph, the company is in a minor slump. This isn’t strange at all when you take into consideration that for the last few months, most cryptocurrency prices have been recorded low.

Overall, if you’re thinking about how to invest in blockchain technology, 360 Blockchain Inc is worth checking out. Even though 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’ll come right back up.

IBM

IBM is the holders of their blockchain technology, which they claim to be superior. The company has joined the Hyperledger Project (a collaborative, open-source project that aims to further develop blockchain-based ledgers) to help develop and advance the earlier versions of the blockchain.

how to invest in blockchain - IBM common stock

The company stresses just how great and profitable their blockchain technology is for businesses. They have recently showcased a trial version of blockchain as a platform for banks. It is evident that IBM is serious with what they do, and they truly believe in the future of blockchain – after all, their whole business model is based on it.

I’ve added a stock chart for you to better see the company’s stock value from the last six months. It is quite apparent from the chart that IBM is serious about their business model and that they’ve got the numbers to prove it.

In summary, IBM has set out to revolutionize businesses with its blockchain technology. If they keep this pace up, they might be worth looking at when thinking about how to invest in blockchain.

Hive Blockchain Technologies

Hive Blockchain Technologies (from this point onward: Hive) is quite a common pick when thinking about how to invest in blockchain technology. As they put it themselves, the Hive is “building a bridge from the blockchain sector to traditional capital markets” (hiveblockchain.com/corporate).

The company currently operates four sectors (two in Iceland and two more in Sweden). These sectors are primarily used to mine Ethereum. Hive has great pride in the fact that they try to be environmentally friendly. The company has built its sectors on cool jurisdiction to minimize the effects that major cooling machines have on the environment.

how to invest in blockchain - Hive blockchain technologies chart

Hive is dedicated to building and developing the blockchain infrastructure. They are trying to accomplish this by partnering with Genesis Mining Ltd. and mining cryptocurrencies 24/7. At the time of writing this article, the company is only mining Ethereum.  They are, however, looking to expand into Bitcoin mining, as well.

As with 360 Blockchain, Hive’s stock prices have also been down for some time now. Again, this makes sense when you look at the recent Ethereum (the cryptocurrency of the company) prices.

Even though Hive’s stocks are crashing, it is probably worth keeping an eye on this company for long-term investments. Hive has some major investors and advisors on its side. This might make things turn to the positive side at any given time for people looking for how to invest in blockchain.

Method No. 2 – Cryptocurrencies

If you’re thinking about blockchain investments, but stocks aren’t your thing, the next best (and most common) option would be to simply buy cryptocurrencies.

Yes, I’m serious.

Though often overlooked by people thinking about how to invest in blockchain, this method is a very popular one. Even though folks from the cryptocurrency communities usually buy cryptos for other reasons (i.e. trading), it is a pretty famous way to invest in blockchain.

I’m going to tell you about three of the most commonly invested in cryptocurrencies, just so you could have a clearer picture of what I’m talking about. Maybe these will be the entry point for you when thinking about to invest in blockchain.

Bitcoin (BTC)

Bitcoin is probably the most well-known cryptocurrency out there. It is considered to be the OG coin, having held its ground for longer than any other coin in the business.

Bitcoin has thousands and thousands of enthusiasts and investors alike. This crypto has made up a huge following over the years, thanks to its notoriety and – what seems like – an overnight burst into the mainstream.

how to invest in blockchain - bitcoin price chart

It is clear from the graph provided above that Bitcoin is in a downhill trend at this point. Despite this fact, many people still wholeheartedly believe in the future of the coin. This might be one of the main factors for this Crypto’s re-emergence.

Ethereum (ETH)

Another very popular cryptocurrency, Ethereum takes second place in the market position next to Bitcoin. Just like it’s contender, Ethereum is a very popular and well-known cryptocurrency in the crypto world.

A strong quality that ETH has is that many of the new startups and ideas are based on its network. BAT (Basic Attention Token) is a great example of this. Because of this, a lot of people think that Ethereum will one day overtake Bitcoin in the market position ranking.

Ethereum bears the same story as its colleague cryptocurrencies – for some time now, it has been crashing in price. This may be due to various factors, but one thing’s for certain – ETH isn’t alone in this downfall.

All things considered, Ethereum to this day has a strong following that believes in the future of this crypto. If you’re thinking about how to invest in blockchain, you would probably do well not to forget this coin.

Ripple (XRP)

Yet another very popular cryptocurrency, Ripple has held its ground for quite some time now. It has managed to keep up with the bigger, more well-known cryptos in the market.

One of the main reasons why people who look to invest in blockchain turn their sights to Ripple is its market price. As of writing this article, the price of one XRP is $0,28. This makes the coin very popular among people who might not have the funds to go big, but still, want to pitch into the crypto investment world.

Ripple has been going down in price since the beginning of 2018. It is worth noting, however, that the crashing process of this coin has been very steady and without any sudden, unexpected spikes.

With XRP always getting into the news for different reasons, it wouldn’t be a crazy thing to say that this coin might just start climbing back up in the future ahead.

Method No. 3 – Startups

Although not as obvious as the other two, this method is pretty popular if you’re thinking about how to invest in blockchain.

Over recent years, there have been many startups that surprised the world with their innovative ideas and goals. A lot of them had one, simple thing in common – blockchain.

When looking to invest in blockchain, always keep your eyes on startups that are built and centered around the blockchain technology. One good example of this would be the before mentioned BAT (Basic Attention Token).

This token was built around the Ethereum network. It currently operates in the Brave browser but is expanding. BAT aims to eliminate all fraud that happens between publishers, advertisers, and users.

It is truly an ambitious project, but the BAT team has been working hard and the results are noticeable!

This is just an example of a blockchain-based startup. With a little bit of digging, you can come across many different projects. Who knows – maybe one of them is exactly what you’ve been looking for?

How to Invest in Blockchain? – Conclusion

Blockchain (and the cryptocurrencies that are based around it) is becoming a more and more popular, almost unavoidable topic. It is just natural that investors turn to this topic and start to unravel just how to invest in blockchain.

There are many different ways you could choose to start investing. In this tutorial I’ve shown you just three – there are plenty more to choose from if you’d wish.

So to answer the bugging question “how to invest in blockchain?”, I’d say that it depends on the person and his or her wants and needs. Everyone’s different, and if you choose to delve into the world of crypto, I wish you the best of luck!

3 Comments

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  • Wow, nice article. Now I got idea on how I should invest in blockchain. What do you think about future of Blockchain Technology Market.

  • An excellent article that talks about how to invest in Blockchain. And this is not only buying and selling cryptocurrency, but also other ways (investing in stocks of companies that are developing in the field of blockchain technologies)