Blockchain technology is the biggest buzzword in a lot of industries now - finance being one of the big ones affected by the development of this technology. It has the power to completely unroot a significant amount of traditional business processes, from the public to the private sectors. Everyone is racing to make the most use of the technology the quickest to gain an advantage over the competition. For instance, the way money is going to be transferred among banks, privately held accounts and even governments is going to change in ways we haven’t seen since the rise of the internet. Trading 101 is evolving into a very different animal than the one we’re used to in a few years from now.
There are several ways for any savvy investor to get the most out of the blockchain boom right now and to get ahead in the game when it comes to being at the forefront of technological change and financial innovation.
Getting into Bitcoin big-time.
One big way to get into the game right now is to stockpile Bitcoin. While the value of Bitcoin has stopped exploding as much as it was in the end of 2017 and beginning of 2018, it is still extremely valuable. It’s also approaching it’s upper limit for how many tokens are going to be in circulation, which means once that threshold is hit, no more bitcoins will be able to get mined. Demand is likely to rise again and value will go back to increasing as the original bitcoin stays the strongest. That is not to say that buying bitcoin blindly at high prices is a great idea, but there are plenty of other cryptocurrencies you can get into at far cheaper prices. The same trading 101 principles apply here as in day trading - built a diverse portfolio, have a good strategy and remain disciplined while you study the charts and data.
There are even blockchain penny stocks - very cheap cryptocurrencies that are also starting to grow. Bitcoin is the most recognized form of cryptocurrency, but it does not serve everyone’s needs, which is why there are many more fish in the sea.
Crowdfund your own currency.
This has been a relatively big trend in the last quarter - since crowdfunding has become a very popular and publicly accepted way of raising money, you can get some skin in the game and do your own Initial Coin Offering (ICO). How these normally work is that there is a certain amount of coins already pre-mined which you then exchange for a buy-in as a type of crowdfunding. It’s essentially a type of pre-sale, as once the currency publicly launches, its value normally rises.
Investing in Startup ventures.
With the rise of blockchain technology and cryptocurrency, more and more companies are popping up out of nowhere to be part of the movement. Those are all looking for financing and investors and are normally willing to part with significant amounts of equity to be able to start their company. Any one of those companies can blow up and provide large return on what could be a relatively conservative amount of investment.
Diving deep into the blockchain technology.
There are companies solely dedicated to developing the blockchain technology and bringing it to businesses and other sectors - from banking to public services, blockchain has application everywhere and companies are going to be willing to spend large amounts of money on its implementation in their operations. This could be the safest strategy other than investing in a large financial player that’s experimenting with blockchain technology, as their stock will be valuable regardless of whether they go deep on blockchain or not.