How to Invest in Blockchain: Your 2024 Guide

Can you invest in blockchain stocks?

Alright, let’s start with the basics, especially for those who might be new to this idea and still learning blockchain. The answer is yes, you can invest in blockchain stocks. However, these stocks are specific to companies that are publicly listed and are directly involved with this technology. It’s important to note that blockchain technology and its innovations are a bit different from what you might be familiar with in other industries because they are not physical things.

If you’re an investor who already knows a bit about the traditional stock market, you might be looking for similar kinds of investments in the blockchain world. Additionally, the cryptocurrency market offers some options for investments that can be sustainable. But it’s crucial to understand the difference between private vs. public blockchain.

In summary, what I want to emphasize here is that there are opportunities for investors like you in the tech world, and we’ll explore more of them together as we go on.

How To Invest In Blockchain Technology 2024

Investing in blockchain technology requires a solid grasp of the technology itself and the surrounding industry. You can start by checking out our blog post where we delve into this great technology in detail. Once you’ve gained a good understanding of what this new technology involves, we can explore different ways. So let’s continue on how to invest in blockchain technology in recent years.

There are various options available on how to invest in blockchain, similar to investing in any tech-related field. These options offer a range of choices based on your willingness to take risks. Investors can opt for general tech stocks or even delve into specialized areas like blockchain machine learning companies. In this section, we will explore the various ways anyone can invest in blockchain.

ETF Blockchain Tech

Exchange-traded funds (ETFs) continue to be a significant way to get involved in this industry. In this guide, we’ll explain how to invest in blockchain ETFs. But before we dive into that, let’s provide a brief overview of what ETFs are and the current regulatory challenges surrounding them.

An exchange-traded fund is a type of investment security that mirrors the prices of an underlying asset and can be bought and sold on the stock exchange. ETFs share many similarities with mutual funds, but there is a key distinction: ETFs are traded like ordinary stocks throughout the trading day, while mutual funds are traded based on their closing prices. ETFs are primarily linked to various assets, including indices, stocks, commodities, and even digital currencies. One fund is distributed by BlackRock Investments, LLC (together with its affiliates, “BlackRock“).

ETFs present a viable option for investors looking to gain exposure to highly volatile blockchain assets while adhering to regulatory guidelines. In several countries, cryptocurrency-based ETF products are gaining momentum. While regulatory bodies in countries such as Canada, Germany, Switzerland, and others have greenlit Bitcoin ETF products, the United States, the world’s largest economy, remains cautious.

As of now, the US Securities and Exchange Commission (SEC) has consistently rejected all ETF applications from US-based firms. However, due to the increasing interest in the ecosystem, the situation could evolve in 2024. The introduction of an ETF product would enable institutional investors to participate in blockchain investments using a familiar and comfortable asset.

Crowdfunding

The blockchain system is designed to resemble the regular stock market in many ways. Just like how companies in the traditional markets collect money from the public through Initial Public Offerings (IPOs), these companies are now also using tokenization to create digital currencies that they can sell to the public to raise money for new data. Let’s find out how to invest in blockchain ICOs.

This fundraising method is called Initial Coin Offerings (ICOs) and can be a way for borrowers. There are specialized platforms for investing in ICOs, but it’s important to be cautious because the cryptocurrency industry is not very well regulated. This means there are risks involved, as many ICOs can turn out to be scams.

Before you decide to invest in any crowdfunding opportunity, it’s crucial to do some research to identify projects with strong foundations. There are various ways to do this, but one fundamental rule is to carefully analyze the project’s Whitepaper to evaluate its merits. You should also consider the tokenomics (how the tokens are distributed and the economic structure) of the project because some projects have unsustainable tokenomics.

Moreover, it’s important to consider the team behind the project. In contrast to the regulated traditional markets, where you typically know the founders of every company, the blockchain and cryptocurrency world has many creators who prefer to stay anonymous.

Anonymity can be a concern, as we’ve seen with Bitcoin (BTC) and Satoshi Nakamoto. However, some individuals choose to remain anonymous to avoid being traced in case they misuse investors’ funds. It’s generally safer to get involved with projects whose founders are known and can be traced, as this provides a level of assurance.

Fintech Stocks – Nvidia, Hive, or Coinbase

The blockchain world is growing rapidly. Many companies in this industry are now publicly traded, which means regular people like you and me can buy their stocks. This is a reliable way. Let’s find out how to invest in blockchain technology through Fintech stocks.

Some well-known companies in this field, like NVIDIA Corporation, Hive Blockchain Technologies Ltd, and Argo Blockchain Plc, are traded on public stock markets. However, the big moment for these companies going public was when Coinbase Global Inc. became available for trading on the Nasdaq Global Select Market. After that, Coinbase became the most valuable trading company in the United States, even more valuable than the Chicago Mercantile Exchange (CME). HIVE Blockchain Technologies (TSXV: HIVE, NASDAQ: HIVE) is a prominent player in the market and is strategically partnered with Genesis Mining, a cryptocurrency-mining hash rate provider.

Another way to get involved in blockchain is by buying the stocks of these companies. But be careful – there are risks, especially if the company’s success is tied to how well the cryptocurrency market is doing.

The stock prices of these companies can go up and down depending on what’s happening in the cryptocurrency world. When cryptocurrency prices fall, people usually trade less on platforms like Coinbase. On the other hand, when things are going well in the cryptocurrency market, there’s more activity. These ups and downs affect how well these companies’ stocks perform, and this applies to most blockchain-related firms, not just exchanges.

Mining Tokens

Mining in the world of cryptocurrencies is the process by which new digital coins are created. Different cryptocurrencies use different methods for mining tokens, depending on the algorithms they’re built upon. For example, Bitcoin, Ethereum, and many other alternative cryptocurrencies use a system called Proof-of-Work (PoW) for mining. This involves solving complex math problems to verify transactions.

Miners typically use specialized hardware designed specifically for this task. Some people even invest in setting up their own mining rigs to generate Bitcoins. However, it’s essential to know that mining can be quite expensive, both in terms of initial investment and ongoing electricity costs.

Another option on how to invest in blockchain technology is the Proof-of-Stake (PoS) model. In this system, individuals lock a certain amount of a particular cryptocurrency to support the network’s operations. In return, they receive additional coins as a reward for their participation. Mining, whether PoW or PoS, is a choice considered by those who have a deep understanding of the cryptocurrency space and are comfortable with the associated risks and expenses.

Best way to invest in Blockchain Technology Stocks

Now, let’s explore how people can buy a share of this technology. In this section, we will discuss the popular websites and platforms where anyone can find something on how to invest in blockchain technology. Keep in mind that these investment options might have restrictions in specific areas due to government regulations. It’s up to the investors to check the rules for each platform to find the one that suits them best.

Robinhood

How to buy blockchain stock at Robinhood:

If you’re wondering how to start investing in blockchain stocks on Robinhood, we’ve got the answer you need. To begin your investment adventure with Robinhood, you’ll first have to sign up on the platform and complete all the required identification verification forms. Once you’re set-up, you can use the platform to explore a wide range of market options that the company supports. Plus, you can make the most of their helpful customer service support.

Binance Exchange

People on Binance can usually trade different cryptocurrencies, but it also has a platform for ICOs. This is where investors can come together to fund a project. Recently, Binance also started offering something called “stock tokens.” These are like digital copies of real stocks, and they move up and down in value just like the actual stocks. When people buy these stock tokens, they also get some of the good things that come with being a company’s shareholder, like getting a share of the profits in real time.

If you’re a trader who likes to see big numbers and lots of activity, Binance could be a good choice for you. They have groups of traders in different parts of the world, and these groups can help you keep up with what’s happening in the cryptocurrency world.

How to buy blockchain stock at Binance:

Binance wants you to sign up and verify your identity (KYC) if you’re interested in using their platform for investing. Once you’ve completed the verification process, you’ll be able to make purchases of cryptocurrencies or check out the Binance Launchpad for a list of exciting upcoming projects you can invest in. They also have something called the Binance Academy, where you can find educational materials to help you understand the platform and the world of blockchain investments better.

Nhash.io

How to buy Nhash Cloud Mining Service:

Similar to other blockchain investment platforms, when using Nhash, individuals need to create an account using their email addresses. After completing the registration process, investors can select from various payment mining plans and make their payments online. The platform also provides customer support to assist with any questions or concerns that may arise while using their services.

Safer Blockchain-related Stocks: Leading Companies

In some parts of the world, there are not many rules in place to oversee investments in blockchain and cryptocurrencies. Because of this, the different investment options we’ll talk about here come with their own dangers due to the lack of consistent regulations.

In this section, we will discuss some “safer choices” for investments. There are companies that are leading the way in blockchain technology, and they offer a less risky option compared to some other investments. However, it’s essential to understand that our mention of these companies doesn’t mean we’re telling you to invest in them. Every investor should do their own research and make careful decisions.

So, let’s explore this topic further:

Distributed Ledger Technology Stocks

Distributed ledger technology (DLT), also known as blockchain, is reshaping the stock market, yielding investment prospects. Firms pioneering DLT solutions witness stock price surges. These stocks provide exposure to DLT’s advantages like efficiency and security, with notable players including IBM, Microsoft, Amazon, and startups. As DLT spreads across industries, stock demand should rise. However, research and risk awareness are essential for investors navigating this emerging underlying technology. Here are our favorites:

Companies developing Blockchain – IBM, Amazon, and more

A good choice is to invest in companies working on blockchain. Some of the big tech stocks are:

Other investment opportunities in the Crypto Space

Other opportunities don’t have to follow the traditional path. There are alternative methods for investment in this field, but it’s essential to understand that these options can carry higher risks. While they are available choices, it’s important to acknowledge their risk factors. Let’s see how to invest in blockchain in other ways:

1. Decentralized Autonomous Organizations: These are unique companies in the world of distributed ledger technology that rely on self-regulation through something called “smart contracts.” Typically, these companies are driven by a special type of digital token that people can use to make choices about their products. Investors can buy these tokens to join the community and benefit from the potential returns on investment over time. Smart contracts can also be utilized in various industries such as supply chain management, construction, gaming, healthcare, and real estate, among others.
2. Enterprise Blockchain Startups: Some new companies in the field are trying to make it easier for businesses to use a special kind of digital ledger. These companies, like the Ethereum Foundation and Casper Labs, are giving people the chance to invest in blockchain with their new innovations.
3. Futures trading: Futures are financial agreements that require individuals to buy or sell an asset on a specific date in the future at an agreed-upon price. In the context of distributed ledger technology, futures trading involves making educated guesses about the future prices of cryptocurrencies. Depending on how much money is borrowed and how much risk is taken, traders can potentially make significant profits if their predictions come true.

Investing in distributed ledger technology doesn’t have to follow the traditional path. There are alternative methods for investment in this field, but it’s essential to understand that these options can carry higher risks. While they are available choices, it’s important to acknowledge their risk factors. Fractionalized stock tokens are like digital representations of real stocks on the blockchain. They allow you to buy a piece of a company’s stock without having to pay for the entire share. You can find these tokens on platforms like Binance and FTX Derivatives Exchange. When you hold a fractionalized token, you get some of the benefits that regular shareholders do.

How to invest in Blockchain Startups without losing everything

First, we’ve shown you the basics of investing in blockchain technology. Second, we’ve introduced you to some promising start-up companies in this field. Now, let’s talk about how to invest in blockchain technology without taking big risks. Is it possible to do this safely? And if so, how can you go about it?

As we mentioned before, you can invest without actually purchasing cryptocurrencies. Let’s see how to invest in blockchain technology without losing everything. Here’s a final list of options for you to consider:

Blok

BLCN

Grayscale Bitcoin Trust

Payment Service Provider Stocks – Visa, Mastercard, Paypal

You can also consider investing in payment companies, such as Visa, Mastercard, or PayPal, which now allow cryptocurrencies on their systems. This makes it simpler for businesses, including financial institutions, to accept crypto payments, and it provides more choices for customers. Advanced security technology makes it easy for these service providers, including financial institutions, to handle crypto transactions, and having more options usually encourages people to make more purchases.

Key takeaways on investing in Blockchain Stocks

How to invest in blockchain has become a big question. It’s increasingly popular as people engage with the growing industry today. The ups and downs in this field have led to the demand for products like crypto ETFs, which are traded on the stock market. But there are other ways to be part of the DLT world too. You can buy shares of companies that work with distributed ledger technology and are listed on the stock exchange. Additionally, you can also invest in fintech companies like Square and Paypal, which are actively involved in blockchain development and the crypto market.

If you’re looking for more detailed advice, feel free to have a conversation with one of our experts. We can teach you how to invest in blockchain with minimum risk.

FAQ

How do I invest in blockchain without buying cryptocurrencies?

The price of Bitcoin, Ethereum, Litecoin, and other altcoins fluctuates often and most investors avoid them for this. However, you can invest in blockchain without buying cryptocurrencies by buying a crypto ETF product, investing in stocks of blockchain companies, and other ways as highlighted in this article.

What are cryptocosm stocks?

Cryptocosm stocks are the shares of publicly traded companies whose business revolves entirely around cryptocurrencies. There are many companies like that today and a typical example is Coinbase exchange.

Are Cryptocurrency investments regulated?

A number of cryptocurrency investments are highly regulated especially pure-play companies that trade on the stock exchange, ETFs, and more. Different regulators around the world are also turning their focus to provide oversight on the growing blockchain and cryptocurrency ecosystem.