How to invest in blockchain, the high-risk but high-potential technology behind bitcoin and other digital transactions

  • Date: 06-Jan-2021
  • Source: Business Insider
  • Sector:Technology
  • Country:Middle East
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How to invest in blockchain, the high-risk but high-potential technology behind bitcoin and other digital transactions

Investing in blockchain technology has become hot due to its role as the database for cryptocurrencies and digital transactions.

You can invest in blockchain technology via stocks of companies that offer cryptocurrency-related services or are developing other industrial applications for it.

Despite its growth potential, blockchain technology should be seen as a high-risk investment. ETFs are the safest way to play.

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Bitcoin often dominates the financial news, riveting investors with its volatile price swings and appreciation potential. Getting far less attention, though, is blockchain, the database technology on which the cryptocurrency rests. 

A blockchain is like an electronic ledger. Data can be entered into it, but cannot be altered or erased, giving it its much-celebrated property of permanency (and implied integrity). 

Many blockchains have emerged since the first one that made bitcoin's debut possible in January 2009. Some of these blockchains support cryptocurrencies like bitcoin, while others support multipurpose digital platforms “” such as Ethereum “” that work like decentralized versions of more traditional (i.e. centralized) platforms and networks. 

Investing in blockchain technology has become a hot topic over the past few years. There are numerous ways to do it too, since blockchain technology doesn't relate