Investments Don’t Have to Be in Coins Only
Brokers will not tell potential investors there are more options to invest in cryptocurrency than simply to buy coins. Digital money is somewhat limited because its true investment value is based on it rising, so you can make a profit when you sell it.
Cryptocurrency investors state the real money is going to be investment in blockchain technology. Blockchain technology is what allows digital currency to work. It keeps track of transactions across computer networks as a digital ledger. Blockchain tech has various applications that can be applied in many ways.
Different blockchain companies focus on different aspects. Bitcoin focuses on payment systems and Storj relates to computer storage. Ethereum is used for decentralized applications.
While each of these blockchains has their own digital money, experts like Morningstar analyst Jim Sinegai said the real investment should be in the blockchain companies themselves. Potential investors should look for companies developing applications that make blockchain technology useful in a broad way.
Alan Friedland, founder of the blockchain-based public currency trading platform Compcoin, said Wall Street will eventually get into this new technology.
“It’s probably the most impactful general purpose technology that’s been invented in the 21st century,” Friedland said.
Brokers also fail to tell clients there are other cryptocurrency-related stocks they can invest in as an alternative to digital money or even the technology behind it. There are five decent stocks you can use as an alternative including:
- Bitcoin Investment Trust
- Riot Blockchain Inc
- Social Reality Inc
- Xunlei Ltd
- com Inc
Knowledge and research of cryptocurrency and the various ways to invest will help you ask the right questions when you meet with your broker regarding your investments. A broker who understands your goals and interest will likely doing his or her best to invest your money in assets where they can both grow and remain relatively low-risk. Your broker will advise you as to high or low the risk is for each of your investments.
Get the latest in Asian Bitcoin news here at Coin News Asia.
About the Author
David Warren is the senior writer and lead researcher at HardStacks. He has been a financial engineer for over 30 years and has been investing in alternative assets since the Great Recession of 2008. He has a true passion for learning about economic cycles and educating others on how to protect and grow their wealth by investing in precious metals, real estate and cryptocurrencies.