5 Ways to Invest In Blockchain Technology

Blockchain

5 Ways to Invest In Blockchain TechnologyOne of the hottest trends in the finance scene, blockchain technology has the potential to transform the traditional business model in numerous sectors completely. Similar to a massive digital spreadsheet, blockchain is shared by all the members of a decentralized network. Usually associated with confirming Bitcoin payments, blockchain technology can also be used in other ways. If you are considering investing in blockchain technology, here are five ways you can get started.

Stockpile Bitcoin
In anticipation of rising prices, many investors have taken advantage of an opportunity to stockpile bitcoins, just like they have with gold. While they are two different assets in that gold is a tangible item and bitcoins aren’t, the underlying investment principles remain the same.

Blockchain Penny Stocks
Believe it or not, there are even penny stocks for cryptocurrency. There are many other types of digital currency, other than bitcoin, that you can invest in, including Altcoins and Litecoin. The last several years have seen many alternative digital currencies being developed in an attempt to compete with Bitcoin and others that were designed specifically to fill those needs that were met by Bitcoin.

Altcoin Crowdfunding
To raise seed capital for various types of investments, crowdfunding has become a popular and mainstream method. If you want to get involved in blockchain technology, you might want to consider a unique crowdfunding method using alternative coins. With this investment method, the total coin supply is pre-mined and then sold in an initial coin offering, or ICO, before the network being launched publicly.

Angel Funding and Startup Ventures
While angel funding and startup aren’t a new concept, one variation that has started to gain traction is the idea of investing in startup built on blockchain technology. As Bitcoin becomes more popular and accepted by more mainstream businesses, the number of entrepreneurs interested in the technology has skyrocketed.

Pure Blockchain Technology Play
The number of pure blockchain technology plays is on the rise. Companies like hashing Space Corporation, Global Arena Holding, and BTCS, Inc., are quickly becoming well-known names in the space. BTCS, for instance, works to secure blockchain via its distinctive transaction verification services.

Blockchain

While many believe that blockchain technology and cryptocurrency are nothing more than a fad, these technologies continue to gain steam and could have the power to change the world as we know it. Deciding to become involved in this technology boom, could result in a significant payout.

Strategies For Bitcoin And Cryptocurrency Investors

Investing in highly volatile bitcoins and other cryptocurrencies is risky business. These currencies are all electronic or virtual in nature, and thus have no physical presence. They don’t even have intrinsic value. However, no one can deny that right now these cryptocurrencies are extremely valuable and those who invested in the early days, and held on to their investments, are living the high life now as multi-millionaires, and even billionaires!

If you want to be like these wise investors sometime in the future, then follow these 4 investing strategies to increase your chances for success.

1 – Prepare For Volatility
It’s basically a given for cryptocurrencies that they are going to be extremely volatile. One minute the price is sitting at 5 digits, and the next it’s at 4 or even 3 digits! It’s absolutely unpredictable, and if you don’t take its volatility seriously, you could get in a lot of trouble. You could panic and sell off your crypto so you can minimize your loss.

However, if you’ve braced yourself for scenarios like this, then you’d probably just shut down your computer, or turn off your TV, and lie down and sleep off your doubts. Tomorrow is a different day, the price could go back up, and all will be fine with the world. Being prepared for volatility is tough, but it’s definitely doable.

2 – Proceed With Caution
Do your research before you start investing in bitcoins and other cryptocurrencies. When you’re dealing with hard-earned money, you don’t want to lose everything in one day. You’re investing to make a profit sometime in the future. Don’t go all in without studying what you’re putting your money into.

3 – Diversify Your Portfolio
Don’t put all your eggs in one basket, so to speak. Don’t just invest in bitcoins. If possible, invest in other cryptocurrencies as well as traditional assets like stocks, bonds, and mutual funds. At least if bitcoin prices drop, then you’re not going to be totally in the red. Your other investments will help keep you afloat.

4 – Store Your Virtual Coins In Cold Wallets
Investing is a long-term game, and it is not advisable to keep your cryptocurrencies in online wallets such as your exchange’s wallet, or even your mobile app wallet. Keep your private keys in cold wallets such as paper or hardware wallets since these aren’t connected to the Internet. You can keep small amounts in your online wallets, but the bulk of your investments should be offline.

Jay
Jay

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