In the financial markets, Blockchain technology seems like the hottest trends with the potential to transform traditional business models in several sectors.
The concept of Blockchain is not simple. It works like a giant digital spreadsheet or ledger in which every transaction is recorded. It confirms, validates, and archives information, and it can be accessed, virtually in real-time, by all participants.
Blockchain technology is becoming known by another moniker, distributed ledger technology (DLT).
How to Invest in Blockchain
Along with its rapidly expanding user base, Bitcoin is now being considered for use by some financial services companies.
1. Stockpiling Bitcoin
Instead of stockpiling gold with anticipation of its value rising, many investors choose to accumulate Bitcoin. The difference between them is that gold is a tangible item, and Bitcoins are not.
Luckily for technophobes, now there are few ways to invest in Bitcoin and blockchain technology that do not include a deep-dive into the murky world of direct Bitcoin trading
2. Blockchain Penny Stocks
There are penny stocks for cryptocurrency. Besides Bitcoin – the best-known digital currency, it also has some other digital currency types such as Litecoin and Altcoin.
Penny stocks representing cryptocurrencies or blockchain technology, or both, offer many chances.
Crowdfunding has evolved into a mainstream method for raising seed capital for all types of investments. One option to consider is a crowdfunding method that uses alternative coins to seek to get involved in blockchain technology.
Services and apps using blockchain technology have used this pre-sale method to raise funding.
4. Angel Funding and Startups
Angel funding is a new variation in startups built on blockchain technology.
When Bitcoin has become increasingly accepted by mainstream businesses, the number of entrepreneurs interested in experimenting with cryptocurrency technology has increased rapidly.
Providing startup and angel funding allows you to get in on the ground floor of what could turn out to be the next Google, Apple, or blockchain frontier.
5. Pure Blockchain Technology Play
Pure blockchain technology plays are available.
If you want to keep your level of risk relatively low, the best option is to invest in one of the shares issued by a large financial services company.
For investors who can tolerate a higher degree of risk, investing in one of the pure blockchain technology investment opportunities could deliver the right combination of risk versus potential return.