Bitcoin, exchanges, online contracts – how easy it is to make money on the crypto boom

Although the current use of bitcoin is still limited, investors see the technology behind it as an exciting topic for the future. Blockchain technology in particular is attracting attention in the IT and finance world.

Blockchain simply explained

The “blockchain” – the German translation of blockchain – is a matter of linked data blocks, through which transactions can be recorded digitally and recorded in a decentralized manner. The encrypted and anonymous data blocks protect sensitive data against unauthorized access, hackers have almost no chance. The revolutionary thing about blockchain technology is that it enables transactions without a central authority registering and verifying the processes. The system generates credibility and transaction security almost by itself.

For example, with Bitcoin payments, banks or payment processors can do without. The payment process takes place directly between the computers involved. Transactions can not only be processed faster, but also much more cost-effectively. Bitcoins and most other cryptocurrencies are based on blockchain technology. However, the scope is wider.

Blockchain revolutionizes data traffic: application examples

Blockchain-based platforms and networks enable multiple applications for seamless processes between institutions, businesses, and consumers. The possible uses thus extend far beyond the financial sector. In principle, all business models within which mediation takes place are affected. Do you want to renew your identity card or officially register your car? Blockchain saves you the trip to the Citizens’ Office or Registration Office. All this should take place from home in the near future.

Industrial processes could also be improved by blockchain, such as traceability of supply chains. Here, blockchain can be used to sign contracts and verify the origin of the product. Another possible use is platforms for exercising voting rights. With a voting system based on blockchain, citizens could in future vote securely and anonymously directly from home. With the increasing convergence of the digital and physical world, there will always be practical applications for blockchain.

The potential of blockchain: why invest now?

Blockchain technology is evolving at breakneck speed and will change our society forever – especially the financial and transportation sectors. Decentralized and secure data storage and processing is becoming crucial in many areas of business and IT. Companies that promote this blockchain technology can establish themselves as first movers in the market and thus operate very profitably in the future. For a long time, investing in cryptocurrencies was the only way for investors to participate in the development of blockchain technology. However, a direct investment in cryptocurrencies is associated with a very high risk.

on You can therefore invest in Robo Advisor investing in companies that have implemented blockchain technology in their business model. According to Statista, the volume of global investment (venture capital, government entities and mergers and acquisitions) in blockchain technologies and cryptocurrencies was around $ 30.2 billion in 2021. In the previous year, the investment volume was around 5.5 billion euros. Those who invest in the technology revolution now can achieve high returns in the long run.

How do I invest in blockchain?

As already mentioned, a direct investment in cryptocurrency is associated with a very high risk. You must also have a digital wallet in which the transactions and inventories are stored. In addition, it is not yet possible to invest in Bitcoin on the stock exchange via Exchange Traded Funds (ETFs) without any problems.

An interesting alternative to direct investment and ETFs, on the other hand, is an investment in companies that have implemented blockchain technology in their business model. This is the approach that the Robo Advisor is investigating taking with the new blockchain technology theme.

About investigating

individuality and achievement stand in portfolio building with the digital asset manager invest in focus. Therefore, the robotic advisor uses so-called thematic investments in addition to the ETF base investment. If you decide to customize your portfolio, your investment will consist of the broad ETF base investment and the items you have chosen yourself, such as blockchain.

With a choice of more than 20 themed investments, you can realize your desires and beliefs in the investify portfolio. The practical: You only have to choose your items, investify ensures the optimal weighting in the portfolio. Individually selectable topics and trends include: Blockchain, the 10xDNA fund from investor Frank Thelen, Dividend Kings, Big Date and many other high-growth topics.