It is a good idea to invest in blockchain technology
When people say "blockchain technology" it really means two things:
The blockchain network for the public (i.e. bitcoin, bitcoin or ethereum) which allows you to buy and sell cryptocurrencies
Private blockchains are being developed by companies for developing for various purposes (i.e. supply chains, medical records, etc.)
If you're looking to invest in the first kind of blockchain technology, then you buy cryptocurrency from an exchange like Coinbase and hold onto it until it is increased (or down). I'll assume that if you're new to this sector and you're reading this article, it's not what interests you. Instead, let's look at private blockchains being created by companies today. Get more information about Cryptocurrency Investing
There are two options of investing in the private blockchain:
Shares can be purchased from firms that use blockchain technology through an traditional stockbroker or online brokerage accounts like Fidelity or E*TRADE. There are a few examples of this, including IBM, Amazon AWS, Intel, Overstock and BTL Group Ltd. It is a Canadian company that has created their own blockchain platform, called Interbit(tm). While the list is growing rapidly but there aren't many public businesses that use blockchain technology at present, which means that your choices are restricted (as of October 2017). There's probably not a lot of information about how these companies are employing blockchain technology since they don't want their competition to know! But what we are aware of is that IBM has poured more than 200 million dollars in research on this topic over the past four years (and counting ...). In fact, it's a signal of trust for investors looking to learn more about how the cryptocurrency revolution could change the way we live tomorrow; there's potential here for sure.
In addition, some people prefer to just invest money in startups working with/building different components of the current ecosystem. This is similar to investing in early-stage biotech stocks , but instead of waiting for 10-20 years for these technologies to be FDA accepted, we'll be considering a much shorter duration
The idea of investing in blockchain-related companies
So, let's say you're looking to invest in blockchain-related businesses. What are some of your choices?
You can invest in companies that are making use of blockchain technology to enhance their primary business. As an example, you could invest in stock of a company which has a single database that is tied the supply chain system--a solution that makes the process of receiving and shipping much simpler and efficient.
You could also invest in companies that are creating Blockchain technology or are developing it, or solutions for other industries. Companies like Microsoft Corporation (MSFT) and Amazon.com Inc. (AMZN) meet this criteria as both have developed the cloud infrastructure required for blockchain technology, which demands significantly more computing power than previous networks do.
Blockchain investment risks
In addition to the previously mentioned risks, investing in blockchain is a risk that is unique due to its nascent nature.
Blockchain is a technology that is still in the development. As such, there are some inherent risks associated with investing in an emerging technology. The blockchain technology isn't guaranteed to will become a popular choice for business or individuals that could influence the effectiveness of blockchain applications. There is a chance that the majority of people do not want to utilize a blockchain-based application or that companies don't build products around blockchain. For an excellent example of this, consider 3D printing: it was widely regarded as the next big thing, but usage has been slow and several businesses haven't been able to manifest as private or public companies over the years.
Blockchain technology is still evolving. There are some who say that we're in the first pitch of an extra-inning game in the world of blockchain (maybe even prior to the first pitch). The truth is, many areas within the space haven't been fully developed , and some aren't even developed for many years! There are limits regarding what you can do with your cryptocurrency and the latest developments could alter your experience for the better or worse.
Be informed about investment in blockchain opportunities
To keep up-to-date with new opportunities for investing in the blockchain sector it is vital to be on the lookout for developments in the field. Some of the best ways to achieve this are:
Keep up with the information. Google has a dedicated section for their results in search that focus exclusively on technology news. This is where you can find out what's new in realm of blockchain and cryptocurrency.
Keep an eye out for investment newsletters that concentrate on cryptocurrency and blockchain. There are numerous newsletters on the market that focus on specific topics related to these. A simple Google search will help you discover them if you don't already have a list of your favorites.
Follow investors in this space on Twitter especially those who have invested for longer than others or have a proven track record of success as well as excellent analytical expertise.
There are numerous ways to invest in the future of blockchain technology.
If you've realized that blockchain technology is here to stay and will change the world, you might consider joining in. To accomplish that, it's important for you to understand the basic concept for investing in blockchain companies.
The key is finding the right company to develop a technology or product connected to blockchain (or an alternative emerging technology). It can come in many kinds, like being part of an initiative that utilizes blockchain technology, or adding various transactions using blockchain to their existing operations. When it comes to investing in these kinds of crypto currencies and businesses there are three key points you must keep in mind:
HODL (hold). The easiest way to invest with cryptocurrencies is by buying them through an exchange like Coinbase. It's simple and inexpensive However, if you're searching for long-term benefits it's not the most suitable option as your funds will be locked on cryptocurrency exchanges for a long time.
You can purchase a token through an entity that is operating a business model. First , you must make sure the company is able to release its own tokens on an exchange (such as Binance) to ensure there's an investment behind it. They are called ERC20 tokens. Make sure that the token actually has a use case for its intended purpose. This can provide it with more value over Bitcoin or Ethereum on its own. Also, take a look at the developments made by each of the projects that is presented in their whitepapers, or by getting more details from their official social media accounts through Twitter and Facebook . You can also see what other people's opinions are about their work by reading reviews posted online.
