The distributed ledger is like a huge digital electronic meter or ledger, and each transaction is recorded in it. It confirms, verify and archives information, and all participants can access it virtually in real time. Blockchain develops from the concept of distributed ledger, but enhances public use and security. The most direct way to invest in blockchain is to purchase related cryptocurrencies. Every time you buy Bitcoin or Ethereum, you are investing in the underlying blockchain. Of course, you can also invest in new products that are developing and implementing new products using blockchain or distributed ledger technology. In this article, we will explore how to invest in the blockchain and its stock.

What is a blockchain?

Simply put, blockchain technology is a point -to -point application that allows only fixed or immutable transactions. These fixed transactions are combined into blocks. All these blocks have a time stamp, and they are also attached to form an endless chain.

Blockchain is essentially a decentralized database to record all transactions that occur in the network. Most professionals call it a form of public classification.

On the other hand, blockchain stocks can be defined as stocks of companies using blockchain technology to create applications. It must be understood that there are very few pure blockchain stocks listed on some major stock exchanges.

However, because more and more industries are trying to adopt blockchain technology, more and more companies are developing blockchain -based applications.

Why invest in the blockchain?

Making money on blockchain stocks is not a matter of time; this takes time and energy. Although each investment has its own risk, investment blockchain stocks have the following advantages:

1. Blockchain account technology provides an excellent platform with stocks, currencies, commodities and bonds.

2. The use of blockchain technology has accelerated the entire transaction settlement process.

3. Blockchain solve data security and privacy issues. When transaction security is improved, the entire transaction environment becomes efficient.

4. Blockchain technology can solve insider trading problems. It is a big thing to solve the problem of insider trading. Solving this problem created a fair playground for all investors.

How to invest in the blockchain

When investing in blockchain -related companies, you have a variety of options, including:

Stocks: The easiest way to invest in blockchain technology companies is through the stock market. Many companies in the industry have already carried out the first public offering (IPO) and can be purchased on the stock exchange or the off -site trading market. Remember that when you invest in the blockchain, you can get the opening of the industry through the stock without directly buying cryptocurrencies or NFT.

Exchange Trading Fund (ETF): ETF allows you to get funds actively investing in blockchain companies.

Crowdfunding: Some blockchain companies raised funds through crowdfunding networks. Blockchain crowdfunding also allows startups to create its own digital currency. Although crowdfunding is not the first choice for most investors, in recent years, it has become more and more popular as an emerging blockchain company.

Studies are still the best way to choose future stocks in any industry, and choosing the right investment in the blockchain business is no exception. Although the underlying technologies and markets involved may be different, the choice of potential stocks for investment is basically the same.

How to start investing in blockchain

In addition to directly investing in company stocks using blockchain, there are other methods to participate in it.

Purchase cryptocurrencies, such as Bitcoin or Ethereum, or stocks that purchase cryptocurrencies, such as GrayScale Bitcoin Trust (OTC: GBTC).

Buy exchanges (ETFs), which is specially invested in company stocks related to blockchain. The two famous examples are Amplify Transformational Data Sharing ETF (NYSEMKT: Blok) and Reality Shares Nasdaq NextGen Economy ETF (NASDAQ: BLCN).

Participate in the crowdfunding of the first token issuance (ICO) -purchase a new Treasury currency issued by developers engaged in new blockchain projects.

Investment involving a listed company involved in blockchain. You can then choose to buy companies that develop or use blockchain technology, such as Wal -Mart or Starbucks. Combining the digital classification account system can make the company more streamlined and more favorable. In the long run, higher profits are equal to higher stock prices.

However, some companies are more focused on betting on the blockchain. Digital payment giant PayPal Holdings (Nasdaq's stock code: PyPl) allows merchants to receive Bitcoin payment through its Braintree subsidiary. In addition, its PayPal and Venmo digital wallet applications are studying other methods to integrate blockchain and cryptocurrency trading functions.

Similarly, Square (NYSE: SQ) CASH APP digital wallet allows buying and selling Bitcoin. Earlier digital payment companies VISA (NYSE: V) and MasterCard (NYSE: MA) also cooperated with cryptocurrency and blockchain initial startups to maintain the correlation of its payment network with the changes in the times.

CME Group (Nasdaq's stock code: CME), the leader of goods and financial derivatives exchanges, is also worth noting because it establishes the first Bitcoin futures and options exchanges.

In terms of digital assets, Facebook (Nasdaq's stock code: FB) continues (through its LIBRA project) to enable digital payment and financial services on its applications. The ambitions of this social media giant have been suffered from many setbacks from government regulators, but Facebook has more than 2 billion users. If it finds a way to play a role, it may become a powerful force in the blockchain field. Salesforce also built -in software in its platform to help customers use blockchain or accept cryptocurrency payment in daily operations.

Skills of investment blockchain technology

Despite the promise, blockchain technology is still an immature field, and it has not fully proved itself in feasible products.

Do your due diligence: Many companies now claim to participate in the blockchain (remember Long Blockchain?), But some companies pursue this technology more meaningfully than other companies. For this reason, research on specific companies and its fundamentals is particularly important.

Blockchain is regarded as a high -growth, high -risk industry: Like technology stocks, blockchain stocks represent a high -growth industry, making investors face a lot of risks. Because most of the broader practicality of blockchain has not been confirmed, the wise approach is to invest in only a small part of the available capital in the blockchain company and diversify as much as possible in other fields.

Pay attention to new laws and regulations: Synchronization is as important as that of regulatory agencies and research on individual companies, especially when the blockchain industry has not yet formed. Government officials and institutions may be legislated by a company that significantly disrupts companies with blockchain.

"Understanding the regulatory background is also a useful indicator. As the British and EU's investment time is prepared for the legislation related to digital assets, the underlying blockchain technology has attracted great attention from the government as the driving force for growth." Say Jones.

Focus on Bitcoin connection: Yes, blockchain investment has an advantage over Bitcoin investment. However, in view of Bitcoin is still the most successful blockchain technology application so far, some analysts advocate attention to companies that mainly use it to handle cryptocurrencies.

Blockchain stock market analysis

Many companies investing in the development of blockchain may seem very speculative, although some large companies have indirectly participated in blockchain technology and therefore provides an exposure to the cryptocurrency market. These companies include sufficient capital and mature companies, such as:

IBM (New York Stock Exchange code: IBM): This blue chip company has invested heavily in the development of blockchain technology and has the largest blockchain patent in the world after Alibaba. IBM also created the TRADELENS global supply chain platform with Matsky, the world's largest container ship operator,. The platform uses blockchain technology to simplify transportation efficiency and network.

Intel (Nasdaq's stock code: INTC): In addition to building hardware for blockchain mining activities, the company's new software protection expansion (SGX) technology also provides hardware -based memory encryption, which is conducive to artificial intelligence applications Program and blockchain transactions.

OverStock (Nasdaq's stock code: OSTK): The Tzero Group department of this technology -driven e -commerce company is an alternative trading system (ATS) supervised by the US Securities and Exchange Commission. TZERO Group is digitizing asset categories to trade through security classifications.

Square Inc. (New York Stock Exchange code: SQ): a financial service and mobile payment company, Square's cash application includes the function of allowing customers to buy and sell bitcoin. As the application becomes more and more popular as a way of cryptocurrency transactions, this should boost the company's stock price.

NVIDIA (Nasdaq's stock code: NVDA): NVIDIA is known for its graphics processing unit (GPU) that can be used to digging cryptocurrencies. The utility has almost doubled the price of NVIDIA products in the past three years. As the use of digital currencies becomes wider and its prices have risen accordingly, demand is expected to grow further in the future.

Chi Shang (Nasdaq's stock code: CME): The world's leading commodity futures trading platform recently added Bitcoin futures and futures options to its long trading asset list. The exchanges have become the second largest Bitcoin futures platform calculated based on the number of unsuitled contracts. Now it competes directly with unsupervised platforms such as Binance and BitMex.

Alibaba (New York Stock Exchange code: BABA): China's leading e -commerce platform also provides enterprise cloud services. The company announced earlier this year that its international platform named Tmall will use blockchain technology to help ensure product quality. Alibaba also provides a blockchain service (BAAS) function for its cloud customers to help build mutual trust and efficient collaboration.

PayPal Holding Inc. Bei Bao now allows customers to purchase, hold and sell Bitcoin, Ethereum, Bitcoin cash and Latecoin digital currency on their websites and applications. The company also plans to allow customers to use cryptocurrencies to pay 26 million retailers on its network by early 2021.

All these capital companies are open to cryptocurrencies and blockchain, so their stocks can be used as blockchain investment because their blockchain opening is usually reflected in their stock price. This provides a relatively low -risk alternative, which can replace the stocks of companies with low popularity for cryptocurrencies or participating in blockchain development.

If you have a higher ability to risk, you may want to study small companies participating in blockchain development or foreign companies that trades their stocks on the spot market. Some more speculative blockchain stocks that you can consider investing may include::

Limelight Networks (Nasdaq's stock code: LLNW): Limelight Networks provides content distribution services (CDS) networks to help customers improve download speed, streaming media and advertising functions. The company recently added a new serverless computing function to its platform and expanded its content delivery capabilities to support the growing demand for online content.

Hive Blockchain (OTCQX: HVBTF): This cryptocurrency miner was allowed to increase its special integrated circuit (ASIC) by 50%, significantly increased the company's cryptocurrency output. HIVE's goal is to set up a bridge between the traditional capital market and the blockchain market, and establish a cooperative relationship with the cryptocurrency mining hash person GeNESIS MINING.

Riot Blockchain, Inc. (Nasdaq's stock code: Riot): Riot Blockchain focuses on supporting Bitcoin ecosystems through workload proof. The workload certificate is a way to ensure that the production cost of each new block in the blockchain is high and time -consuming. The company is one of the largest bitcoin miners in North America and has rich experience in decentralized markets.

The future of blockchain

Some research reports show that by 2025, the market value of blockchain and related industries may exceed $ 28 billion. Innovative technology and its influence have not completely affected the society, but once digital currencies become a safe payment method, it becomes easier to be accepted, and it will further increase. In fact, blockchain investment through stocks, ETFs or crowdfunding seems to be the next wave of equity investors.

The company's stocks that contribute to this growth and benefit from it and the investment interest generated by it are likely to show a significant rising valuation, just like the car stock in the early 20th century or the Internet stock just 20 years ago. As always, please remember to conduct due diligence before investing funds and thoroughly study any potential investment.

Although blockchain technology is still in its infancy, it is developing rapidly and has attracted the attention of many investors. Looking for companies that have a strong influence but can promote growth by providing blockchain services, it may be an effective way to diversify your investment portfolio. As an investor, it is important to conduct in -depth research before deciding to invest in blockchain stocks. In addition, you should also pay attention that most pure stocks are usually traded in the market on the field.