Didn’t become a crypto-millionaire yet? You’re not alone. Investing in Bitcoin initially seemed like a risky decision, but many people regret not leaping when they could after a few years of massive growth. However, you can capitalize on blockchain technology in more ways than trading cryptocurrencies.
What is a blockchain?
Some might say that blockchain is the most important invention of the 21st century. In simple terms, blockchain technology is a method to capture information that’s impossible to change. That means hackers can’t change the info and cheat the system. It’s called a digital ledger that captures data and duplicates it, after which the information is sent to all computers on the blockchain system. This is it in a nutshell.
Invest in public companies
This is not to mix up with investing in an ICO. This addresses traditional ways of investing in companies, but with a focus on organizations that leverage blockchain technology already. For example, you can look into mining enablers and traders. These companies allow the tools you need for crypto-mining, trading, and exchanges. In addition, some companies offer closed-based solutions for blockchain. These are called Blockchain-as-a-Service, and they also provide consulting services. Investing in companies like these will allow for long-term growth and ROI.
Investment vehicles
Many traditional investors like hedge funds, endowments, and private equity firms have started investing in blockchain ventures and startups. Look into Exchange-Traded Funds, Exchange-Traded Notes, Digital Asset Funds, or Futures. All of these could be directly linked to Bitcoin. You can indirectly invest in this cryptocurrency and hedge your profit against volatility. This is a safer method of investment but might have lower returns.
Crypto tokens
Crypto tokens and cryptocurrencies hold value because of their scarcity. Investing in these items and either having them or trading them can be very lucrative. Some of the tokens you can invest in include:
- Cryptocurrencies like Bitcoin, Litecoin, and recently more popular the Dogecoin.
- Security tokens are parts of physical assets like art.
- Utility tokens like Binance and Augar.
- Non-fungible tokens (NFT) like CryptoKitties or even tweets.
- Platform tokens like Ethereum.
“Hodling”
This term is actually based on a typo when someone meant to type “hold” as in “don’t sell”. It became a meme and now stands for “hold on for dear life.” as a backronym. The idea comes down to buying crypto and holding on to it as it increases value over the long term instead of trading it over the short term. You should be able to make higher profits by holding on to the crypto item for longer. This can however also result in a crash if the value drops.
Trading with crypto
You have the option of using trading bots to buy and sell crypto using preprogrammed strategies to maximize profits. Alternatively, you can take advantage of minor price discrepancies of coins listed on different exchange sites. The use of automated trading bots is one of the most popular trends in cryptocurrency trading. For example, KuCoin players use kucoin trading bot to make good profits.
Get free Bitcoin
Getting your hands on money for free is not easy and one has to be careful about this kind of practice. It might seem unbelievable, but it’s true. You can get free Bitcoin from a few sources. Blockchain projects that give away free tokens to create awareness or reward loyalty are called airdrops. This can be a lucrative place to get free Bitcoin. If you participate in Bitcoin faucets, you can earn Bitcoin by doing specific actions or just paying attention. Some sites reward you for learning about new currencies.
There are more active ways to earn cryptocurrency. By mining and staking, you can mine coins from a standard computer. Bitcoin, unfortunately, needs more specialized equipment. If you don’t have the expertise or simply want to increase the hashing power, you can join a mining pool. It can also increase your profit this way. If you have a home server, you can run a master node, from which you can earn a stake of the cryptocurrency, which is Bitcoin capitalized. You can also buy a cryptocurrency and hold it in unique wallets to make interest.
Final thoughts
Blockchain technology is here to stay, and it’s changing the world in many aspects. You can profit from blockchain by doing some research and finding out which options are best for you. Even if you don’t want to invest in cryptocurrency, there are many other things on which you can capitalize.
YouTube: Blockchain in IBM Global Financing
This guest article has been provided by Alex Lysak.
Photo credit: The feature image has been done by Adinarayana Rao Rayavarapu.
