A Comprehensive Guide To Investing In Blockchain Stocks

• Toshendra Kumar Sharma
• May 27, 2019

Introduction

Industries across the globe are adopting blockchain technology faster than expected. Though a majority of the people are more interested in speculating about cryptocurrencies, the option of investing in blockchain is also one which cannot be overlooked. It is possible for blockchain technology to exist even without cryptocurrencies. This is one of the primary reasons as to why blockchain appeals to companies which are looking to commercialize their operations. In recent years, a large number of publicly traded companies are expressing their interest in blockchain technology.

 

Stocks of companies are being traded publicly. The interest shown by customers and investors towards blockchain stocks is steadily increasing. Some of the renowned companies are hopping onto the blockchain wagon and trying to monetize the opportunity.

 

Facts to be aware of before investing in cryptocurrencies

 

• It is always safe to invest a portion of your portfolio.
• The government is planning to regulate cryptocurrency.
• The cryptocurrency market is unpredictable, and hence, it is possible for it to vanish.
• Risk-averse investors must steer clear of blockchain stocks.

 

Points to remember before investing

 

It is always essential for investors to do their research properly before investing in blockchain stocks because there is still a risk factor associated with stocks. Those who believe in the potential of blockchain will invest with ease. Blockchain stocks have the potential to turn into investments. So, it is best to invest your money in companies which develop genuine technology which can be adapted to multiple industries. Stock investments are less volatile than cryptocurrencies.

 

Where to trade blockchain stocks?

 

Some of the online stock trading brokerages to trade blockchain stocks are:

 

• eTrade
• Scottrade
• iWeb
• DeGiro
• TD Ameritrade

 

How to choose the blockchain stock to invest in:

 

The global blockchain market size in the year 2018 reached US$1.2 billion. Before buying, be sure to evaluate the technology behind the company, such as its potential to disrupt the market and the number of people or companies that benefit from it. A wise investor will learn in-depth about the technology the company promotes. Be sure to read market research reports, market analyses, articles in cryptocurrency magazines, white papers, and comments written by analysts and experts.

 

Apart from evaluating the technology, also investigate the management team. Even companies that are currently performing well may have a hard time with Managers of questionable integrity. Study the performance of popular stocks in the market and check their growth trends and performance of the past and also gain insights about any future predictions of the stocks of these companies.

 

Be sure to invest your money with the people you trust. Try to invest in companies whose business models you understand. This helps you keep an eye on your investment and aids in making better decisions while buying or selling stocks. Stay updated with local laws and keep track of every transaction to file track reports at the right time, as capital gains from stock holdings are taxable.

 

Out of the many companies which are involved in blockchain, there are many which are publicly traded. Let us take a look at some of those :

 

 

• Atlas Blockchain Group (CSE: AKE)

 

 

It is a blockchain mining and technology company. It secured C$5.2 million in January in financing. It plans to use these funds to acquire the outstanding and issued shares of Isracran Biosciences. It is based in Israel and has procured the rights to cultivate 23,000 square feet of Cannabis production, the psychoactive drug obtained from the Cannabis plant. Atlas projects that its mining capabilities will reach 2,550 ASICs (Application-Specific Integrated Circuits) by the second quarter of this year.

 

• Cobalt Blockchain (TSXV: COBC, OTCQB: COBCF)

 

It is a resource and development company which has 12 years of history in trading Cobalt. It has developed Mintrax, a mineral supply chain driven by blockchain. In March, the Cobalt blockchain announced its completion of C$1.3 million private placement offering for the establishment of lab facilities and finance exploration activities.

 

• DigitalX (ASX:DCC)

 

It offers services such as advising on Initial Coin Offering (ICO) and token advisory services and AirPocket, which allow secure transfer of funds. It also runs an unlisted fund of top crypto assets which has shown superior returns over the top 10 crypto index as per the company’s 2018 year-end report.

 

Other notable blockchain stocks are HIVE Blockchain, Global Gaming Technologies, Kontrol Energy, Interbit, Overstock.com, and Marathon Patent Group.

 

Conclusion

 

As blockchain technology is a very new concept, many opportunities are there for direct investment. Most of the companies which develop the most innovative business applications are either start-ups or private companies. The others are financed by Initial Coin Offerings (ICOs). The trade happens in an unregulated market on exchange for which the developing of standard business processes is still underway.

 

A research conducted by Market and Markets, a competitive intelligence and market research platform, suggests that the value of the blockchain market will be US$23.3. billion by the year 2021. According to the World Economic Forum, in the past few years, 40 central banks have reportedly deployed blockchain technologies. Bottom line, blockchain is here for the long haul, and this must undoubtedly ease the minds of those who are planning to invest in blockchain.