How to invest in blockchain?

Introduction to blockchain

It’s essential to understand the origins before diving deeper into how to invest in blockchain. The concept of blockchain began in 2008. Satoshi Nakamoto published a paper on Bitcoin and the idea for two accounts to transfer payments without the need for a third-party financial institution.

At its most basic level, a blockchain is a chain of blocks of data. It begins with a genesis block that births other blocks, or bundles of transactions. The parent block is always the previous block. All of these blocks are linked together with each other using cryptography. They contain various information – timestamps, specific codings, and most importantly for a crypto enthusiast – information on the various transactions that happen within.

Blockchain allows the two parties (between whom the transaction is happening) to avoid a third party – more often than not that would be a bank. The data of the transaction is kept encrypted within the blocks which are quite hard to modify and dabble with.

As of 2015, the Ethereum blockchain has been launched. This is a more sophisticated version of the Bitcoin blockchain. Ethereum allows the user to create more complex smart contracts, which in turn allow safer, better-optimized transactions.

Although Ethereum’s algorithm PoW makes the network equal and secure, it has difficulty processing information transactions over 25 TPS (Transaction Per Second).

TomoChain has been leading the way with their own solution: a scalable blockchain that can handle thousands of transactions per second in the upcoming Internet of Value (IoV). The blockchain supports horizontal scaling, creates a network of chains that provide instant confirmation and very low transaction fees, and acts as an ideal solution for decentralized applications, token issuance, and token integration for small and large businesses.

 

How to invest in blockchain technology

Disclaimer: It seems that more and more people are coming to blockchain with ambitions to make money out of it. However, before making any sort of investment, you should always consult with a financial expert or advisor. Any sort of transaction or investment that you make is purely at your risk. 

How to Invest in Blockchain Stocks

If you want to know how to invest in blockchain without buying Bitcoin and other cryptocurrencies, then buying blockchain-related stocks is a good way to get exposed to blockchain technology.

If you don’t have an investment account yet, open an online brokerage account with brokers like TD Ameritrade, E * TRADE, Charles Schwab, or Fidelity Investments. Once you’re up and running, these stocks may be worth a look: IBM (IBM), MasterCard (MA), Nvidia (NVDA), Advanced Micro Devices (AMD), Taiwan Semiconductor Manufacturing Company, Limited (TSMC), etc.

How to Invest in Blockchain ETFs

If you don’t want to deal with investing in individual stocks, you might consider investing in low-cost exchange-traded funds. These funds invest in a basket of companies using blockchain. Furthermore, these ETFs don’t just trade with suspicious companies that you have never heard of; They hold many blue-chip companies you’ve heard of, such as IBM, that we mentioned, as well as others like Microsoft and Goldman Sachs.

Some examples of ETFs can include Reality Shares NexGen Economy ETF (BLCN), Innovation Shares NextGen Protocol (KOIN), Amplify Transformational Data Sharing ETF (BLOK).

How to make money with Blockchain via Cryptocurrencies

Bitcoin is the best investment of the last decade as it garners 12 million percent returns for those who bought it in early 2010. Crypto as a whole has done well with crypto assets being the world’s best-performing asset class of 2019. The crypto market even beat the stock market, which had been torn apart by the coronavirus pandemic that hit March 2020.

Bitcoin itself should be good enough for most people, as this is the “least risky” investment in a space known for volatility. While you may see higher returns from altcoins and ICOs, it is difficult to catch, unless you actively participate in the fast-moving cryptocurrency space.

When assessing the investment potential of a cryptocurrency, you need to consider criteria related to the cryptocurrency such as the whitepaper, the development team, its roadmap, and the reputation of its leaders. 

Some of the potential altcoins could be likened to TOMO. TOMO is the cryptocurrency that powers TomoChain. As mentioned, TomoChain is an innovative solution to the scalability problem on most blockchain platforms. It features a 150-Masternodes architecture with Proof of Stake Voting (POSV) consensus for near-zero transaction fee, and instant transaction confirmation. 

In short, here’s what you’ll need to get started investing in a cryptocurrency:

1. For most, the easiest way to buy some cryptocurrency is through a centralized exchange service like Coinbase, Kraken, Binance, Maka.
2. Afterward, you should store your crypto in a secure wallet that you control since centralized exchanges regularly get hacked. For TomoChain, Pantograph Extension can help you manage your Blockchain Assets conveniently right on your browser as the app is exclusively built for the blockchain.

So, what is the best way to invest in blockchain?

No matter what people think, it’s clear that blockchain is becoming an increasingly larger part of our everyday discourse. It is natural that you are trying to learn how to make money with blockchain, like early investors in technology, such as the automobile and the Internet.

If you want to keep your level of risk relatively low, the best option is to invest in one of the stocks issued by a major financial services company that is testing the potential of blockchain technology for service improvement, or a technology company investing in broader applications for blockchain services.

For investors likely to accept a higher level of risk, investing in cryptocurrencies can provide the right combination of risk versus potential return.

While there are many ways to invest in blockchain, the methods we’ve detailed in this article should get you started.