How to invest in blockchain technology in 2018
This technology has been around for eight years, and interest towards it is growing rapidly: investors are eager to enter the cryptocurrency market and invest their money in the right way. We will tell you about ways to invest in blockchain with minimal risks.
Isn’t it too late to invest?
Bitcoin went from $1,000 to almost $20,000 in 2017, but digital currency continues to be volatile. Nevertheless, experts in the field of blockchain generally give optimistic predictions.
"It's not too late to buy bitcoin," says Emma Poposka, CEO at the digital currency company Bron.Tech. "If there will be full implementation of the technology in the future, its price should still rise, because the number of bitcoins is limited," she says.
Kambiz Djafari, co-founder and CEO of Edgecoin.io, the world's first educational platform for Ethereum, predicts that bitcoin price may reach $25,000-$50,000 in 2018.
Investing in blockchain: options
There are three main strategies for investing in blockchain:
- positional strategy;
- stock exchange trading;
- purchasing shares.
The first option is quite simple: an investor buys a certain amount of cryptocurrency for real money and awaits an increase in its rate. At some point, the value of the virtual currency will increase, and then it can be sold for much more than the purchase price. In this case, the investor has to be patient: the art of such investment is in not breaking ahead of time, when the currency depreciates temporarily.
To do this, you need to, first of all, get a cryptocurrency wallet. There are desktop and online wallets. Desktop ones are the most secure, but you need a space for them on your computer (from 145 GB). The most popular wallets are Bitcoin Core, Armory.
An online wallet is a simple, but a more risky solution. Nevertheless, it is very popular. You just need to register. Options: Blockchain, Coinbase, Strongcoin, GreenAddress and others.
Stock exchange trading
The principle will be understood by those who are familiar with the Forex exchange - the basic idea is very similar. At the same time, cryptocurrency has a decided advantage: for the time being it is not very common in the CIS market and the basics of trading on the digital currencies exchanges are not known to everyone. Thus, beating competitors in this area is much easier. The most popular exchanges for trading bitcoin are Binance, HitBTC, Poloniex, Kraken.
One of the most popular ways of investing in blockchain is buying stocks of fast-growing companies that sell solutions based on blockchain technology, for example: blockchain in ATMs, services in mining and cyber security of payment systems, smart contracts, platforms for trading and exchanging assets or tokens on the blockchain. Among such companies are BTCS, DigitalX, First Bitcoin Capital.
According to Market and Markets, the total world turnover of the blockchain market will be about $2.3 billion by 2021. According to Grand View Research prediction, by 2024 this figure will rise to $7.74 billion. Many experts from around the world predict the long-term development of blockchain that will please the investors. However, any investment is always a risk.
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