There are multiple ways to invest in the blockchain technology today
Nowadays, blockchain can be compared to personal computing in the 80s, the internet in the 90s, cell phones in the 2000s, or social networks and apps in the 2010s. Blockchain seems to be very promising, albeit a still not yet fully explored technology. Imagine you’d founded (or invested in) something like Apple, Google, or Facebook 10 years ago. Today you’d probably be a billionaire (at least a millionaire).
Some experts say that it may be early to invest in blockchain, but it is undoubtedly a good time to learn about it. The more you learn, the more reasonable your investments will be.
Before giving some investment advice, we should write a disclaimer. We are not a broker company, as well as we are not your broker or investment adviser. We are not here to tell you where to put your money. After all, you are the only one who is responsible for your money and actions. You can choose any of these options, but before you do anything, you should do a lot more reading and think twice (at least twice).
There are four ways to invest in the blockchain technology today. They are ranked from riskiest to safest.
1. Invest in coins and tokens
Once again, this is the riskiest way. You may find it difficult to argue with the fact that you can significantly benefit from such an investment if it works out. However, there is a good chance you could lose all invested funds.
Investing in cryptocurrency, you are not investing straight in the blockchain. However, it means you invest in the application of this technology. Putting money in crypto coins (especially tokens) you are at risk of buying a pig in a poke. There is no guarantee you’ve purchased reliable crypto since it can be conventional pump-and-dump or a Ponzi scheme.
There is one more option, related to coins and tokens – an ICO. Since there is so much fuss around it right now, it became extremely hard to determine what is real and what isn’t. It is exactly what happens with things in trend. We do not try to say that any ICO is a fraud, but you certainly should think twice before putting money into an ICO. History knows many examples when ICO was no more than a fake or a scam.
2. Invest in blockchain-related startups
Blockchain, as we have mentioned above, is a technology, not the application of technology. This changes a lot for those, who have decided to invest in blockchain. Anyway, putting money in a blосkсhаіn startup is less risky than investing in сrурtосurrеnсу.
However, here’s the thing about blосkсhаіn startups. How are you supposed to find or even define a blосkсhаіn startup?
Mostly, blосkсhаіn stаrtuрs are just people using blосkсhаіn to issue tokens or producing a way to transfer them from someone to someone else (nothing fundamentally new). Actually, it looks like some kind of Bitcoin. However, the question arises whether the market needs so many tokens/coins with almost the same functionality.
Many other startups decided to pivot to blосkсhаіn because they merely have no other options. Desperate for a solution, they turn to this new technology to find the way out. Apparently, most of these attempts to solve “lack of options” problems are unsuccessful. Thus, such startups are considered to be unreliable.
If you are thinking of investing in a blockchain startup, you likely have (extended) experience in this field. Thus, you most likely know what you are doing. Anyway, we can only recommend you to do your research and ensure that the firm is using blосkсhаіn for blockchain reasons. If a company is trying to find a solution to an existing unresolved problem, you can be sure it is doing something worthwhile. Stay away from firms and startups that try to find (or even create) a problem to which they can apply a temporary solution.
3. Invest in publicly traded blockchain ETFs
This option is less risky than previous ones, although it can’t be called the most profitable one. Despite the fact that this concept is relatively new, there are a number of publicly traded ETFs, which aim to track blосkсhаіn firms.
Nevertheless, as we know nothing’s perfect. The question is, how “blосkсhаіn” these ETFs really are?
As we’ve said before, this phenomenon is relatively new, so it would take some time to find the answers to some questions. For now, you can consider this option as reliable, but not the most profitable. It will not give you 1000% returns, but it is a price you have to pay for reduced risks.
4. Invest time in learning about blockchain
The name says everything. So what more is there to say? Time is one of the most valuable resources you have. If you disagree with this, it is your right, but we are sure that someday you’ll change your mind.
Try to learn as much as you can about blockchain, startups, investment strategies, cryptocurrency and their implementation in real life. This kind of investment doesn’t require any money or seed capital. Quite on the contrary, it requires only your time, brain, and willpower. Nevertheless, this option can be the most beneficial one.