Blockchain serves as a distributed digital ledger designed for the storage of diverse data types. It has the capacity to document details related to cryptocurrency transactions, ownership of NFTs, and the execution of DeFi smart contracts.
Unlike conventional databases, blockchain distinguishes itself through its complete decentralization. Instead of being managed in a single centralized location, akin to an Excel spreadsheet or a bank’s database overseen by a central administrator, blockchain databases exist as numerous identical copies distributed across multiple computers interconnected throughout a network. These individual computers are commonly known as nodes.
It has revolutionized digital finance, logistics, and supply chains. By 2024, the blockchain technology sector is estimated to be worth about $20 billion. The technology also has the potential to boost global economic growth.
By 2030, a PwC study estimates the technology could be responsible for $1.7 trillion of global GDP. Here are some ways you can invest in this technology.
Blockchain Stocks
Investing in blockchain stocks is one of the easiest ways to gain exposure to blockchain technology. Companies are working on blockchain technology and creating use cases for the technology. These include Starbucks and Walmart, which incorporate technology into their operations.
The result is that they become leaner and more profitable, which raises the value of their stock over time.
Other companies working on the technology include Infosys (NYSE: INFY), which works on blockchain technology services. Block (NYSE: SQ) is also a renowned name in the sector. Formerly known as Square, the company was co-founded by former Twitter CEO Jack Dorsey.
It was renamed to emphasize the focus on blockchain technology, including crypto. Another notable space in the space is HIVE Blockchain Technologies (TSXV: HIVE, NASDAQ: HIVE).
The company is working on bridging the divide between the traditional capital markets and the blockchain industry.
Blockchain ETFs
Blockchain exchange-traded funds (EFTs) are another excellent option for investing in the technology. They offer a lower entry point than stocks and access to a basket of companies. There are already several blockchain ETFs in the market.
They include Siren NASDAQ NexGen Economy ETF (NASDAQ: BLCN), which was established via a partnership with NASDAQ. Its focus is on long-term growth and blockchain-based companies.
Another notable blockchain ETF is Amplify Transformational Data Sharing ETF (ARCA: BLOK), an actively managed ETF created in January 2018. Its holdings include companies working on blockchain technology.
Investing in Blockchain Crowdfunding
Crowdfunding platforms are a great way to gain exposure to blockchain technology. Blockchain crowdfunding, also called an ICO, allows a company to develop a digital currency, which they sell to investors.
RealBlocks is one of the best crowdfunding platforms today, which lets users tokenize physical assets, focusing on real estate.
The result is that retail and institutional investors can own part of a property. Another example is Gitcoin, which allows coders to submit project ideas and crowdsource funding.
Buying Crypto
Another way to invest in blockchain technology is through directly purchasing crypto. There are thousands of cryptocurrencies to buy, with new ones constantly released. Due to the fluctuating nature of crypto prices, it is important to consider your crypto investment options carefully.
Consider Your Options Carefully
Investing in blockchain technology is a process that requires careful consideration. The first thing you should do is to understand how the technology works. After that, pick a sound strategy that meets your goals and risk appetite.
Once you invest, stay vigilant by monitoring market movements. Due to blockchain investments’ inherent risk and high volatility, making an informed decision is crucial to success. With enough research, determination, and time, a blockchain investment can lead to huge gains.
Disclaimer: This website provides information about cryptocurrency and stock market investments. This website does not provide investment advice and should not be used as a replacement for investment advice from a qualified professional. This website is for educational and informational purposes only. The owner of this website is not a registered investment advisor and does not offer investment advice. You, the reader / viewer, bear responsibility for your own investment decisions and should seek the advice of a qualified securities professional before making any investment.