Four ways to invest in blockchain

Hi there! Investing is a great way to save and increase your cash capital Blockchain investments have the same goal. And today we’ll talk about 4 great ways to invest in blockchain ranked from riskiest to safest.

The first thing you need to know — blockchain is not a sure thing. Therefore, the first and most risky way of investing:

While cryptocurrency is not blockchain, it is the most direct way to invest in the application of the technology. It’s also the riskiest of risky options. You’re betting not only on the underlying blockchain technology gaining wider acceptance, but you’re betting that the people employing said technology are employing it correctly, that their vision is clear, their code is kosher, their use case is valid, and that their business model will work. And those are just the startup risks.

With coins and tokens, you’re also betting that they’re not just hitching their car to a runaway train, their morals are in check, that there is no pump-and-dump or Ponzi scheme either purposely or accidentally happening, and that they’re not going to get hacked, tricked, blackmailed, or subpoenaed.

Blockchain is a technology, not the application of technology. That means investing in a blockchain startup is less risky than investing in cryptocurrency. The problem is it’s hard to find or even define a blockchain startup. A lot of blockchain startups are just startups using blockchain to produce coins, tokens, or some way to transfer coins or tokens from someone to someone for some purpose. Others are tech startups that are pivoting to blockchain because they’re out of options.

If you have the means and inclination to invest in a blockchain startup, this probably isn’t your first rodeo. So like any other investment, do your research and due diligence, but mostly make sure the company is using blockchain for blockchain reasons, and what they’re doing is trying to find a solution for an existing difficult problem.

This is where the risk factor drops from crazy to everyday, and it’s also the easiest option. A relatively new concept, there are a number publicly traded ETFs that purport to track blockchain companies. This means they’re a basket of publicly traded stocks of companies that are using blockchain or are related to the use of blockchain and cryptocurrencies. They’re all pretty quick to point out that they don’t invest directly in cryptocurrencies, so they’re a far less risky option. The problem is, there’s some debate as to how “blockchain” they really are.

There are no 10,000% returns here, but at least you’re dealing with garden-variety danger.

Low risk, high potential returns, true blockchain, totally manageable. The thing about blockchain as a technology is it’s a paradigm shift. It has the potential to change the way we pass information. We will definitely see the development of this technology, and we can also participate in it.

Making the decision to invest in any direction, study it. Assess the risks. There are always more risky, but potentially more profitable ways. It’s worth starting with more reliable, albeit less profitable, ways of investing.

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