Blockchain is one of the most revolutionary technological innovations in the modern digital era. There are firms, multinationals, and startups that are leveraging the power and scale of blockchain to develop new solutions to complex challenges.
This is opening up the need for investment within the domain, and many blockchain companies are raising millions of dollars in capital. Research from IBM shows that the blockchain market is set to grow by $60 billion globally by 2024. Portfolio managers are looking toward these blockchain companies to provide much needed growth through their innovative solutions.
If you’re curious about how you can get involved yourself, read on for more details.
Finding the right blockchain stock
Investing in blockchain isn’t restricted to only institutional investment firms. Everyday traders can also learn how to invest in blockchain without buying any Bitcoin. You can buy blockchain stock without having to open a Bitcoin wallet or converting your dollars into any form of cryptocurrency.
Investors need to source the right market in which they can invest in blockchain stocks. Major stock markets host blockchain companies, and leading investment management apps offer quick suggestions. You can get started quite easily by researching the right companies to invest in from the get-go.
The next step is to find the right stock to invest in. This involves a lot of research into various companies that work within the blockchain space. It’s important to weed out firms that have a small segment of their operations dedicated to blockchain technologies. You may find greater returns in firms that have made public announcements about the performance of their blockchain solutions.
On the other hand, tech giants can also be safe bets as they make headway into blockchain. Facebook is a prime example of a tech company that is seeing significant growth in the blockchain and distributed ledger space. It’s a good way to balance out your portfolio so that you’re not too heavily invested in the blockchain space exclusively.
Pure-play vs. traditional stocks
Many leading developers in the blockchain space have shown significant growth over the years, as more projects get completed in the domain. They have an attractive offering on the stock exchange and are being picked up by investors worldwide. There is greater scope in the blockchain space for long-term investment as well. Pure-play stocks are a good way to approach the market if you’re confident about the domain.
Traders can also go for traditional stocks (such as Google and Kodak) that have invested significantly in the blockchain space as well. These firms are more traditional in their approach, and are a safer bet when compared to new startups and young companies. They’re also a safe investment for long-term portfolio development, since they hold a wide range of technological innovations outside of blockchain as well.
Trading in blockchain ETFs
A few of the leading firms in the investment space have created blockchain focused ETFs, that are investing in a wide array of blockchain companies. These form a coherent basket of firms, that hedge against market fluctuations and major risk factors.
Blockchain companies regularly partner with tech, banking, and auto sector participants to provide greater efficiencies through the power of technological innovation. And when investing in pure play blockchain companies becomes a risky proposition, you can always opt for a blockchain ETF which holds multiple companies in its portfolio. It provides greater returns across the board when positive insights emerge about the blockchain space.
Blockchain can be leveraged across different industries. It can be used within the real estate industry, with smart contracts and auto-matching. The technology can privatize health records in the medical research space. It can also make driverless cars that much more efficient with its distributed ledger model. The scope is endless for the technology.