Want to get into blockchain investment? These methods you must know

Blockchain technology has shifted from an obscure topic in recent years to a popular option in the investment circle, but many people still have only a superficial understanding of “how to invest in blockchain.” Besides directly buying coins on trading platforms, what other ways are there to invest in blockchain? Today, we will provide a comprehensive breakdown.

What exactly is blockchain?

Simply put, blockchain is a distributed public ledger. Every time a transaction occurs, the information of that transaction is recorded and linked together using cryptographic techniques into a “block.” These blocks are connected in chronological order to form a “chain.” Rather than being a financial instrument, it is a new way of recording and verifying information— all participants hold a complete copy of the ledger, and no one can tamper with it.

Four main ways to invest in blockchain

Currently, the mainstream methods of blockchain investment in the market include the following categories:

Direct purchase of cryptocurrencies

This is the most straightforward and common investment method. Open an account on a legitimate cryptocurrency trading platform, buy digital assets like Bitcoin, Ethereum, etc., and wait for appreciation or short-term trading profits. The advantage of this approach is its simplicity and ease of entry.

Investing in blockchain-related company stocks

Many publicly listed companies are involved in blockchain technology or mining operations. Buying stocks of such companies is an indirect way to invest in blockchain. Compared to directly purchasing cryptocurrencies, this method carries relatively lower risk and is more regulated.

Participating in cryptocurrency mining

Purchase specialized mining equipment (such as ASIC miners, GPUs, etc.), participate in the network verification process, and earn mining rewards. This method requires certain technical knowledge and a significant initial investment.

Investing in cryptocurrency index funds or ETFs

By purchasing funds that track cryptocurrency indices, investors can achieve a one-click investment across the entire market, making it a relatively conservative choice.

Why invest in blockchain?

Huge market potential — As an innovative technology, blockchain offers a new decentralized data management and transaction model. It has gained widespread recognition among investors and professionals, with the global market size growing year by year and promising prospects.

Lower transaction costs — Compared to traditional credit card payments or stock trading (which involve banks, brokers, and other intermediaries), blockchain’s decentralized nature significantly reduces transaction fees, saving costs for investors.

Stronger security — Every transaction on the blockchain is permanently recorded on a distributed ledger, making tampering nearly impossible. Compared to centralized systems prone to credit risks, blockchain provides more robust transaction security.

Transparent market rules — The programmable nature of blockchain makes market rules clear and explicit, reducing losses caused by information asymmetry in traditional markets.

How should novice investors choose?

Route one: Start with stocks

If you have doubts about cryptocurrencies, you can begin by investing in stocks of blockchain-related companies. This approach is closest to traditional investment and has manageable risks.

There are many such companies worth paying attention to: 360 Blockchain Inc specializes in blockchain and innovative technology investments, with strong professionalism and transparent financial disclosures; IBM, as a pioneer in blockchain technology, has long been committed to optimizing business models and strengthening technical capabilities, with great growth potential; Hive Blockchain Technologies mainly engages in Ethereum mining and plans to expand into Bitcoin mining in the future. Its stock price is relatively low, suitable for long-term layout.

Note that the blockchain stock market is still in development, so be cautious and evaluate the platform’s safety and regulatory level before investing.

Route two: Directly trade cryptocurrencies

This is the fastest way to profit and also the most common choice.

Bitcoin is recognized as the king of cryptocurrencies, with the highest market acceptance and a large investor base. Ethereum ranks second after Bitcoin, with many emerging projects built on its network, offering huge growth potential. Some even predict its future value could surpass Bitcoin. Additionally, Ripple (XRP) and other tokens are also popular choices.

There are two main ways to buy cryptocurrencies:

First: Purchase directly on trading platforms

Trading on legitimate cryptocurrency exchanges is currently the most mainstream method. It’s simple to operate and suitable for investors who want to hold long-term.

Second: Use leverage trading via Contracts for Difference (CFD)

This is a trading method that has gained popularity in recent years. CFDs allow traders to amplify gains with smaller capital through leverage, especially suitable for investors seeking quick profits from short-term price fluctuations.

The principle of CFDs is: traders do not need to hold the actual cryptocurrencies but sign contracts with the broker based on their judgment of price movements. When expecting prices to rise, they open long positions; when expecting prices to fall, they open short positions. The trading platform executes orders quickly, enabling investors to seize market opportunities flexibly.

Comparison: CFDs vs direct purchase

CFD trading lowers the barrier to entry and attracts many small and medium investors. However, remember that leverage is a double-edged sword—it can magnify both gains and losses. Beginners should start with low leverage and use risk management tools like stop-loss and take-profit orders.

Currently, legitimate blockchain CFD platforms are under strict regulation by financial authorities, which alleviates concerns about market regulation and fund safety.

Final advice

As an emerging industry, blockchain investment opportunities are continuously emerging. Successful investors need to assess the market timely and seize opportunities. But regardless of the method chosen, always remember: Returns come with risks; invest cautiously.

Whether you choose stocks, spot trading, or leverage trading, you should thoroughly learn relevant knowledge before investing, start small, and gradually find an investment rhythm that suits you.