• Saad Atique

Investing in Blockchain

Updated: Sep 15

Blockchain investors are high risk/high reward investors who are essentially betting that blockchain technology and . After cryptocurrency prices started to rise exponentially in 2017, the interest of investors towards crypto and blockchain has expanded even further.


Those who got in early made huge gains - an investment of $100 in Bitcoin in 2011 would be worth multiple millions now. But what if we told you that it is still early?


So, if you want to know about blockchain investing and other related details, this read is for you. Continue scrolling to find more information.


An implied blockchain leading to a dollar sign, hinting at the monetary potential of blockchain technology
Investing in Blockchain

Why should you invest in blockchain?


As a modern and increasingly popular technology, blockchain is naturally attractive for investors and the business community.


Here are some elements that make it lucrative:


  • Blockchain can make business more efficient and drastically enhance profitability in a quick time.

  • Blockchain is appreciated by big names like Amazon (NASDAQ: AMZN), Salesforce.com, and many more.

  • After COVID-19 effects, the world is shifting to digital platforms, and blockchain is among other innovative technologies like cloud computing, e-commerce, and Artificial Intelligence.


Blockchain Investing: Your Options


Luckily, there many opportunities for investing in blockchain. Which option you choose mainly depends on the amount of risk you can bear.


Stockpiling Bitcoin


Just as many traders and financiers are stocking gold, thinking that its prices will rise, many are stockpiling Bitcoins.


Despite the obvious differences between gold and cryptocurrencies, the investment principles are the same. Both are unusual, rare, and finite. However, the rate at which Bitcoins were being generated previously was fast than the present. The process has significantly slowed in the last few years as bitcoin has reached its default limit of 21 million coins.


Although Bitcoin is popular, it is not the only one on the market. Other currencies such as Ethereum, Chainlink and Cardano have gained popularity over recent years and have began to take some market share away from Bitcoin.


Many alternative digital currencies emerged in the market in the last few years to challenge Bitcoin, and most of them are created specifically to fill all the needs not fulfilled by Bitcoin.


Remember that when the supply of any product is restricted, as the demand increases and its value also rises. So you can also avail this opportunity and think about stockpiling the bitcoin and other cryptocurrencies with limited (or even deflationary) supply.


Blockchain Stocks


You can also find stocks for cryptocurrency and blockchain based businesses.



Stocks that represent cryptocurrencies or blockchain technology provide various investment opportunities to people looking for blockchain exposure in their portfolio, but the market is much more unpredictable more mature investment sectors. So only invest if you can bear the losses and be vigilant.


Crowdfunding


Crowdfunding has evolved in recent years, and it has become an effective method for raising capital for investments. If you want to invest in blockchain, you can consider a crowdfunding method that includes alternative coins.


In this case, the supply of coins is pre-mined and then traded in an initial coin offering before the network's public launch. For example, Ethereum used this form of crowdfunding to get started.


The major benefit of the ICO model was that it created (in most cases) near instantaneous liquidity for the underlying tokens. But the funding model was also abused to the point of near extinction and so ICOs are increasingly rare nowadays.


Furthermore, many blockchain based services and apps are using crowdfunding to gain capital for investments. Investors have the opportunity to buy shares in a company with an expectation that their value will enhance if that particular service gets widespread.


However, its worth noting that traditional crowdfunding is very illiquid and you may not be able to sell your purchased shares for years.


Blockchain Funds


If you are looking for a diversified and professionally managed exposure to blockchain technology, blockchain funds are a good option.


Operating the same way as an investment fund, these are solely focused on the blockchain economy and thus invest in cryptocurrencies and tokens associated with blockchain prrojects.


Our sole purpose as a company is to provide a blockchain fund that anyone can invest in from €10, and it is available on ICONOMI.


Our DeFi Infrastructure Investment Fund Strategy invests in multiple blockchain tokens that are associated with the operation of the ever growing decentralised finance sector and has provided returns of over 5700% since January 2020.


Since 28th July 2021, we've made the strategy available to everybody via ICONOMI.




Pure Blockchain Technology


Many established companies such as Intel Corp. and IBM Corp. are investing in blockchain technologies for various purposes.


Some other organizations, such as Galaxy Digital Holdings (GLXY) and Silvergate Corp., are working as all-in on blockchain technology, but these have minimum investments and investor experience hurdles to overcome.


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