This crypto investment strategy doesn’t involve buying cryptocurrencies. It’s focusing on companies, that will benefit from either cryptocurrencies or blockchain technology and ideas. You can this way avoid some of the volatility that surrounds cryptocurrencies, whilst still profiting from this segment of the market. The idea of this strategy is
to buy stocks of companies that are directly or indirectly involved in cryptocurrencies, blockchain or similar technology. They don’t have to be specifically a blockchain company – it’s enough if some of their services or products are somehow connected to this part of the market and can profit from the growth of blockchain or crypto-assets.
Some companies that fit this description:
- RIOT blockchain (but beware – this one seems dodgy – research and make your own decision)
- 360 blockchain – CNX or CODE (not yet public, but worth following)
- Coinsilium group – COIN / CINGF
- Marathon patent group – MARA – because they acquired a Digital Assets company Digital Bit Ventures
- GAIN Capital – GCAP
- Overstock.com – OSTK
- BTL Group
- Pareteum TEUM – partnership with AirToken
Make sure you don’t just buy these because they do something with blockchain or bitcoin. Research the company, read reviews, what do they sell, check their investor relations and P&L (profit and loss) statements. Not all of them migh be solid long term investments, maybe good short term speculation opportunity.
There is and will be a very high interest in buying blockchain related stocks – even if a company doesn’t perform that well and their key metrics don’t make it a good purchase, being related to a blockchain technology will bring investors and push its price up. This is a clear bubble behaviour and it helps being aware of it. It doesn’t mean you shouldn’t buy these companies, but it should drive your investing strategy. They can go high fast, but they can fall fast too, so be prepared. On the other hand – if you buy cheap, low value stocks and invest smaller amounts, the downside is limited, the upside is much bigger.
Whether we are seeing a blockchain / crypto bubble or not, if you choose your investments , there will be some that will make it out of the bubble and profit. Same as during the dot.com bubble – many companies failed, but some didn’t (Google, Facebook, PayPal, Ebay, Amazon etc). If you have invested in others and at least one of these, you are probably still a happy investor.