On February 21, 2021, Bitcoin hit a new high of $58,330.57, approaching the $60,000 mark, up more than 6,500 times in ten years, and Elon Musk (founder of Tesla) made a profit of more than $900 million. In fact, Bitcoin is just one of the many uses of blockchain. So how do you make a blockchain investment? And what should you consider before investing in blockchain? Below, let's take a look.

     How to make a blockchain investment?

Blockchain is called one of the world-changing technologies of the 21st century and has become a hot spot in the industry, investors can make blockchain investment according to the following three ways.

1、Invest in digital currency

Blockchain theory is the underlying technology of Bitcoin, and Bitcoin is the most successful use of blockchain. Therefore, investing in digital currency turns out to be the easiest way to invest in blockchain. Investing in digital currencies enables you to trade digital currencies through digital currency exchanges, such as Binance and Huobi, large international trading platforms.

However, as the price of well-known digital currencies such as bitcoin and ethereum rises further, depending on the specific shopping often have to invest a larger amount of money, even more than the affordability of some investors, and the digital currency CFDs just solve this problem.

CFDs allow investors to trade on the price of digital currencies without specifically owning them. The investor gets is the spread between the settlement price and the contract price in the future trend.

2, invest in blockchain stocks

Many famous listed companies around the world are actively laying out and developing blockchain technology, such as IBM, Microsoft, Amazon, Visa, etc. Investors can buy their individual stocks to achieve the effect of investing in blockchain. Investing in stocks of relevant blockchain listed companies is the most intuitive investment method for investors. When the stock rises, the investor earns money, and when the stock falls, the investor loses money.

3、Invest in blockchain startups

Investing funds in startups in the blockchain field, turning into a shareholder of the company, and growing with the company. However, there is too much uncertainty about the future, the stability is not high, and the investment capital is large. However, if you do come across a promising startup, the profit is bound to increase thousands of times.

     What to consider before investing in blockchain?

1, What is the problem that this program is overcoming?

There are many coins that exist only as a value transfer protocol and are of no particular use. There are also many blockchain businesses that are just trying to participate in the digital currency trend and in fact have no purpose. Consider the problem that the blockchain is attempting to solve and subsequently look for a project that can provide a solution in the real world. Assuming that such a project can solve the problem, it could be demanding once it is put on the market. This is something worth investing in.

2, Does the project have efficient goods?

Many blockchain merchandise even have a long way to go to get usable products or services. The reality is that there are a lot of things that could happen in that time frame, for better or worse. This means that investing in it represents a lot of uncertainty and risk until a valid commodity is released.

3. Who is practicing this program?

You are about to explore and find out if the team of people working on this project are experienced, competent and excellent in blockchain technology. See if the team consists of at least people with recognized blockchain experience. You should also inquire if the company has certain marketing credentials and background that will indicate that they are serious about growing the business in the long run.

Check the team's social networking materials to see if there is prior experience related to the current project. They should all be on LinkedIn and/or Twitter, making it easy for you to be able to verify the full feeling. Research the team leader and senior team members to find out if they have a background in digital currencies and if they are well known and respected in the industry.

Additionally, if the team is active on social platforms, it means that the project has better transparency and you can quickly get updates on the development of the project and the strategic partnerships around it.

4. Does it set up partnerships?

Projects that are serious about their future will try to establish some strategic partnerships with the more established companies in the industry. These kinds of partnerships can be clients of the blockchain platform or a cooperative association between 2 fair parties that want to look into the method. In either case, as an investor, it's important to look into the names of organizations that are taking an interest in the project and are interested in it. This means that there is more potential, and even after a long period of development, there is no partnership program, you should avoid.

5. What is token supply?

Token supply is the current circulating supply and the total existing supply. That helps you determine the level of rarity of the currency compared to other currencies, and you can figure out how much the price has increased as well.

Whether or not to invest in the blockchain, any investment is accompanied by a certain risk, you must do a good job of comprehensive understanding before entering the field, do not invest with a full head of steam.