How to invest in Blockchain Technology

Uncategorized Feb 19, 2018

Technology and training & development go hand in hand; a firm belief held by The Blockchain Academy[1]. Being a leading consultant and provider for corporate training and development solutions across industries, we have always compelled our clients to invest in advanced and more efficient technologies to keep their business ahead in the market. Since we have been focusing the rising technology of blockchain since last few weeks, we have decided to help our clients investing in blockchain technology, through this post.

For investing in blockchain technology, you don’t need to be a Silicon Valley Capitalist and to own stake in global blockchain phenomena. I have included the following ways through which entrepreneurs and businesses of all levels can invest in blockchain technologies directly. From early investments of just few dollars, to equity shares worth billions, entrepreneurs can start investing in the technology at all income slabs.

Cryptocurrency Investments

Crypto currencies can be taken as a new kind of digital money or digital commodity. They can be a fuel for distributed ledger networks and also as mediums of exchange to buy goods and services. Based on the intent, the crypto currencies can also be used as an appreciating short or long term investment. The value of crypto currency is subject to extreme volatility periods (in certain cases up to greater or less than 20 percent)[2], bringing both huge risk and a great opportunity. In due course, it is worthwhile effort to carry on in-depth due diligence before investing in crypto currencies.

Investing in crypto currencies in the early stages is challenging; however, consistency will pay off. There are a range of variables to think for while investing in crypto currencies such as entry price, exit strategy and secure storage.

Venture Investing

Blockchain based venture capital funding has crossed over $1 billion mark, overall. This mode of blockchain investment can have different levels of entry, with initial investments as little as $5,000, up to Series A investments[3]. Venture capitalists play a more vibrant role, like providing introductions and/or mentorship. If a business is able to drive growth with great outcomes, a venture capitalists can think of being a partner in the business, owning equity and acquiring a place a in the board.

Digital Asset Acquisitions

Acquiring blockchain based domain names directly, is quite a stable and safe method of directly investing into blockchain technology. This method enables investors to maintain direct command over their investment, while exploiting the benefits of investment appreciation. Investing in the blockchain digital assets is considered as the most risk-averse investment strategy in the market.

Crowd funding

The blockchain based crowdfunding is similar to conventional form, but, collected funds are accounted and tracked through a blockchain. This allows new businesses and causes to raise funds by developing their crypto currencies, while in return they get digital tokens representing the shares of project, with the expectation that said shares are going to get benefited from token value appreciation[4].

Stocks

Making investment in blockchain based public companies in the form of acquiring blockchain stocks is similar to that of buying stock in any other company. While there are businesses whose mission is to transform this, investing in a publicly traded blockchain entities today enables investors gaining a stake in the company working on blockchain technology and innovations.  Bitcoin Investment Trust[5] is the first publicly quoted bitcoin-backed securities. The BIT enables investors to gain exposure to the price movement of bitcoin without the challenges of buying, storing, and safekeeping bitcoins.

The publicly traded blockchain businesses in the distributed ledger industry have passed through the same scrutiny as publicly traded entities in other industries. The trends which you can expect in publicly traded blockchain businesses include software development, diversification, mining endeavors and crypto currency holdings[6].

 

 

[1] www.TheBlockchainAcademy.com
[2] http://www.investopedia.com/articles/investing/120315/5-ways-invest-blockchain-boom.asp
[3] http://finance.yahoo.com/news/here-s-how-to-invest-in-the-blockchain-180350728.html
[4] http://www.marketwatch.com/story/4-blockchain-companies-that-could-change-everything-from-accounting-to-money-transfers-2016-05-11
[5] http://www.otcmarkets.com/stock/BTCS/quote
[6] https://www.quora.com/What-is-the-best-way-to-invest-in-block-chain-technology

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