Blockchain technology has transformed the way we think about everything, from currencies to medical records, and you may wonder, “How do I invest in blockchain?”

In this article, we'll explore what blockchain technology is, why it's a compelling long-term investment opportunity, and the various ways you can gain exposure to this emerging trend. By the end, you'll have a solid understanding of how to become a blockchain investor yourself. Let’s start with the basics!

What is blockchain?

To truly grasp the blockchain investment potential, it's important to understand the fundamentals. At its core, blockchain is a digital ledger that chronicles a record of transactions and shares it among a distributed network of computers.

The blockchain public ledger ensures the security and transparency of stored information, as it prevents any alterations. Beyond just finances, blockchain has wide-ranging applications and benefits. You can check out “Features of blockchain that support sustainability efforts” for more details.

One of the most well-known use cases for blockchain is cryptocurrencies. There are many benefits of cryptocurrencies for the digital ecosystem in general, from finance to centralization, thanks to decentralization.

Why start investing in blockchain?

While still in its relative infancy, several factors point to blockchain being a promising investment theme. Even during bear markets, core blockchain protocols, crypto tokens, and altcoins have seen strong growth over the past decade. Some of the benefits of investing in blockchain include:

• A wide range of use cases across industries is a big plus. Blockchain can potentially impact businesses valued in the trillions, like finance, tech, healthcare, and more.
• Rapid growth projections. With global blockchain tech spending set to grow to over $60 billion by 2024, according to MarketandMarkets, the runway for growth is long.
• Scalability and efficiency gains from decentralized networks should drive greater mainstream adoption over time.
• Early investors in disruptive technologies like the internet enjoyed outsized returns. Blockchain is another such transformative innovation.
• Security and transparency of transactions are a big draw, especially for decentralized applications in finance, supply chains, and government.
• Significant ongoing research and development, as well as venture capital funding to commercialize the technology, further improves the long-term outlook.

Of course, blockchain investing also carries risks, given that the sector is in its early stages. Careful project research and portfolio diversification are advisable. However, the long-term upside makes it a compelling theme to be part of for patient investors.

Is it a good idea to invest in blockchain?

With lofty predictions for blockchain's widespread role in nearly every industry, from finance to healthcare, investing in blockchain seems prudent.

However, it requires understanding different risk-adjusted approaches:

Investing in blockchain-based companies

Firms applying the technology, like Cryptobunq, offer direct exposure. Cryptobunq is a one-stop-shop crypto solution provider, offering custody and wallets, exchange APIs, blockchain payment solutions, and more diverse solutions for businesses and individuals.

Investing in blockchain infrastructure

Companies building the resources powering blockchain systems, like crypto exchanges, are also benefiting.

Investing in cryptocurrencies

While highly speculative, investing in cryptocurrencies offer potentially higher rewards. Stablecoins aim to bridge mainstream adoption by minimizing the volatility of cryptocurrencies and offering the benefits of fiat currencies in the digital ecosystem.

Investing in blockchain investment funds

For diversification, consider blockchain investment funds targeting promising startups. Funds spread risk across a portfolio of private companies.

Is it too late to invest in blockchain?

Many argue we're still relatively early in the blockchain's development and adoption curve. While Bitcoin and Ethereum have achieved immense popularity and valuations, the broader technology is still in its infancy in terms of mainstream use.

Platforms beyond currency are currently exploring the capabilities of smart contracts. As a comparison, the internet in the mid-1990s had less than 50 million users worldwide. Today, over 4 billion people are online.

Blockchain is following a similar progression, from the initial euphoria of early speculation to the beginnings of real utility as infrastructure and standards develop.

It's also worth remembering that blockchain is not a monolithic entity; different protocols, layer 1 solutions, and applications all have distinct roadmaps and maturity curves.

Even well-known crypto coins like Bitcoin are still improving the foundations for mass adoption through scaling solutions and other upgrades.

In other words, if your view is 5–10 years or longer, there are still meaningful opportunities left across the entire blockchain value chain. Short-term price fluctuations shouldn't distract from the potential of blockchain technology to change global business and financial systems.

Ways to start investing in blockchain

For investors new to the asset class, here are some routes to gain initial exposure:

• Use brokerages to purchase major cryptocurrencies and stablecoins.
• Sign up for crypto exchanges that offer access to a broader selection of coins and tokens beyond just Bitcoin.
• Buy shares of investments in blockchain products through traditional brokerages.
• Research crypto index funds to spread bets across a basket of coins based on market capitalization.
• Only put in what you're willing to lose since cryptocurrencies remain highly volatile. Always practice security best practices and store assets in a crypto wallet.

You can also invest in blockchain through tokenization. Investing in tokenization opens up enormous new ways for the digital ecosystem. You can benefit from security tokens, NFTs, cryptocurrency tokenization, and real estate tokenization thanks to blockchain-powered tokenization solutions.

Cryptobunq aims to provide you with a wide range of crypto services, from batch payments to node as a service, to guide and help you with this innovative technology. Tokenization is also one of our expert solutions. Make sure to check out our case studies and follow CBQ blogs for further guidance!

What blockchain is the best to invest in?

With thousands of types of cryptocurrencies and hardly any earnings, deciding where to allocate capital requires diligence. Bitcoin, the first cryptocurrency, remains the gold standard due to its brand recognition and track record of resilience, but may offer less upside than more innovative challengers.

Ethereum supports smart contracts and decentralized applications on its underlying blockchain, fueling growth in decentralized finance (DeFi) and non-fungible tokens (NFTs).

A wise approach is cultivating a diversified basket of networks with complementary use cases that drive real-world utility and adoption over time. You should also choose the best approach for your projects.

However, if you need more details, you can check out our complete guides on “Crypto Trading Strategies," “How to Pay with Crypto," “Accept Crypto Payments,” and “How to Set Up a Cryptocurrency Wallet.".

The bottom line: blockchain is paving the way towards a new digital economy

While uncertainties exist in regulation and scalability, many expert observers believe we’re still in the early adoption phase of blockchain technology.

For investors seeking exposure to blockchain’s potential to reshape business and value transfer globally, options range from direct coin purchases to investment in companies applying the tech.

By starting small and educating yourself on this developing space, it's possible to participate in blockchain’s promising future, ushering in new economic models powered by distributed consensus networks.

As more real-world use cases demonstrate the technology's advantages over traditional systems, expect continued innovation from companies like Cryptobunq that provide services in crypto and blockchain.

Integrate crypto services into your business for prospective growth with the expert crypto-friendly digital bank, CBQ. Contact us today and explore what blockchain technology has to offer for you through secure solutions and expert guidance with Cryptobunq!