How to invest in blockchain

In Industry News

“Blockchain” is a buzzword in many circles. You’ve probably heard about blockchain and been told it can be profitable. Perhaps you’ve been wondering how to invest in blockchain and be a part of it.

Here’s what you need to know: most cryptocurrencies are based on blockchain technology. You can’t directly invest in blockchain, per se. Instead, you can buy cryptocurrency assets that utilize blockchain technology, hoping that the assets with appreciate in value.

To get started on this journey, we first need to understand blockchain.

What is blockchain?

Blockchain is a network or database that stores transactions in order. It’s extremely powerful because transactions are stored immutably, which means they cannot be deleted or altered.

Blockchain is distributed. Many computers or "nodes" across the world can connect and help to maintain the network. As more nodes join the blockchain network, the ledger is guaranteed to be immutable because no single person can edit the record.

The key to keeping blockchain networks functional is being able to reach consensus. This means that an ultimate truth is always reached. No decision can be made by one party or a small minority. Most often, blockchain projects rely on a cryptocurrency to reach consensus.

In short, the power of blockchain can be seen security, immutability, scalability, automation and low fees. Cryptocurrencies exist to take advantage of these benefits.

Investing in blockchain

Innovative minds discovered the power of blockchain technology. The number of blockchain startups has increased over the last few years. As a result, the total number of cryptocurrencies has grown quickly.

Now we know that blockchain is the underlying technology of most cryptocurrencies, knowing how to invest in blockchain is the next step. Basically, investing in cryptocurrency means investing in blockchain. If you have crypto, you’ve got skin in the blockchain game.

Picking your investment

There are a lot of cryptocurrencies to choose from. Just like with anything else in life, not everything can succeed.

Investment is about protecting your capital, first and foremost. Therefore, you must pick your investments with care.

Make sure you carry out thorough fundamental analysis of every investment before you pull the trigger and buy.

How to do fundamental analysis for cryptocurrency

How to buy cryptocurrency

As we’ve deduced, buying cryptocurrency is how to invest in blockchain, more or less. Once you are prepared to choose your investments with care, you’re ready to learn how to buy.

The process is straightforward. All you need is a crypto exchange that supports fiat such as USD, EUR, JPY.

On Liquid, you can deposit fiat with a bank transfer or using your credit or debit card.

How to buy crypto with your credit or debit card

How to fund your account with fiat

Once your account is funded, all you’ve got to do is buy your crypto. Using Quick Exchange it’s easy.

Simply select the currency you deposited in the top box and the one you want to buy in the bottom. Click Quick Exchange and voila! You have now bought cryptocurrency.

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All guest authors’ opinions are their own. Liquid does not endorse or adopt any such opinions, and we cannot guarantee any claims made in content written by guest authors.

This content is not financial advice and it is not a recommendation to buy or sell any cryptocurrency or engage in any trading or other activities. You must not rely on this content for any financial decisions. Acquiring, trading, and otherwise transacting with cryptocurrency involves significant risks. We strongly advise our readers to conduct their own independent research before engaging in any such activities.

Liquid does not guarantee or imply that any cryptocurrency or activity described in this content is available or legal in any specific reader’s location. It is the reader’s responsibility to know the applicable laws in his or her own country.



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