Maybe you’ve heard of cryptocurrencies and blockchain and find the technology behind them exciting, but you’re put off by the volatility of most cryptocurrencies.
So it seems only natural to invest directly in blockchain technology. But is that even possible? What are the options, and what are the benefits and risks?
Below, we’ll go over 4 ways you can invest in Blockchain and profit from this new technology.
Option 1: Shady online offers
The truth is this: It’s impossible to invest directly in blockchain.
“How do I invest in blockchain?” is like asking, “How do I invest in the Internet?”
It’s not something you can just do. Instead, you can invest in companies that build on the Internet or use it to their advantage.
It’s the same with blockchain technology.
So if you see online offers that advertise to invest directly in blockchain – stay away from them.
Especially when shady claims are made, such as that this offer would be secret or limited and therefore not available on public exchanges. In this case, they are simply scammers.
Option 2: Invest in a crypto ETF
The second way to invest in blockchain is through crypto ETFs.
Nowadays, some traditional banks and brokers offer the possibility to invest in crypto. However, these are usually not the cryptocurrencies themselves, but derivatives.
For example, a top 10 or top 20 crypto ETF.
To go into too much detail here would go beyond the scope of this article, however, you must understand one thing: You do not own the cryptocurrencies themselves in this case, and are thus exposed to additional risk.
In the US, for example, the largest Bitcoin trust – GBTC – is now trading at 50% below the actual Bitcoin price.
Sure, it’s easier to use a well-known bank or exchange – but in my opinion, it’s not worth taking that extra risk for that little bit of extra simplicity.
Option 3: Invest in crypto companies
Since I have my own company in the crypto field, I also use this option myself.
However, you must always be aware that crypto companies do not necessarily profit from blockchain – but rather from cryptocurrencies and the business model they are built on.
Moreover, when it comes to a company, it is always hugely important how well the company is managed and implemented. There are companies that make huge profits, and others that make a loss at the end of the year.
It’s similar to investing in gold mines, rather than gold itself. Often you notice with these companies that their price development is not so dependent on the gold price itself, but also has a lot to do with the region, the politics in the region and the management of the company.
That’s why I myself, excluding my own company, have not invested in other crypto companies and prefer to use option #4 instead.
Option 4: Invest in cryptocurrencies yourself
The classic and easiest way to profit from blockchain: You choose your favorite coins and then invest in their blockchain.
You have a huge choice here, of course: Bitcoin, Ethereum, DeFiChain, MATIC, BNB, Solana, you name it.
If you are still at the beginning, I would advise you to read my book Cryptocurrencies simply explained. You can buy it here – also as an audio book read by myself: https://geni.us/crypto_simple
Even Elon Musk has been seen with this book.
With this, you build up a very solid basic knowledge in a short time. I would then start with the big, proven cryptocurrencies like Bitcoin or Ethereum and experiment little at the beginning.
This is the best way to invest in blockchain in my opinion and the one I use myself.
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