The last few of months have seen increasing dynamism in blockchain technology. Numerous companies, financial institutions, banks, and individuals all over the world have chosen to invest in the blockchain boom. Despite all the hype, it can be challenging for someone just starting out to get a piece of the pie and carry out an investment in the cryptocurrency market. Therefore, in this article, we will tell you about the easiest and most secure ways to invest in blockchain technology.
1. Purchase Cryptocurrencies
You’ve most likely heard about this method already and probably even considered it. However, oftentimes people consider digital currencies untrustworthy due to volatility issues. The reason cryptocurrencies don’t work by the same rules as other investment assets is because they revolutionize the “old school” financial system. Bitcoin doesn’t need financial institutions in order to be successful, and this is definitely clearer now that its price keeps skyrocketing day after day. This is mostly due to the laws of supply and demand: Bitcoin was designed to have a limited supply and therefore the demand grows bigger and bigger by the day. It is important to stop being afraid of volatility, as most of the time a decrease in value leads to an increase shortly afterwards. Stockpiling digital currencies such as Bitcoin, Ethereum, and other alternative coins can be a smart investment move. Their value constantly increases and you can expect a high return on investment.
2. ICOs: become an investor
While initial coin offerings are fairly new high-risk investments due to the current lack of regulation, if successful, investment yield could be huge. For those of you who don’t know, ICOs are a form of crowdfunding in the digital currency market, meant to help startups raise starting capital quickly. Tokens are pre-mined and exchanged for capital, which can be used by the company to invest in their project. Once a project is up and running, the value of pre-sold coins can increase if the company is successful. From that point on, investors can either sell their share of tokens for a profit or use them to access the services being offered. Either way, make sure to do your research before investing in ICO, as the majority them lack actual use cases and may never become profitable.
3. Stocks, Blockchain Projects and Angel Funding
If you are looking for a less risky method of getting involved in blockchain, you may want to consider purchasing stock originating from companies that are preparing to launch blockchain-based services. Another way would be to invest in startups not issuing ICOs by themselves, yet developing projects for the blockchain industry. If successful, not only will you own a part of the company, but you’ll also be paid dividends which is a great way to increase your income.
The increasing popularity of the blockchain market indicates that the payoff for investors with varied blockchain portfolios will be huge, regardless of the investment method they utilize.