Blockchain technology is gaining traction as cryptocurrencies reach new highs and increase adoption. A way to get in on the action is by investing in blockchain stocks. We break down the benefits and risks of investing in them — and how to trade them.
Blockchain stocks are shares in companies like IBM (IBM) and Square (SQ) that use blockchain technology in their applications. Blockchain stocks are limited in major exchanges, but you can find stocks from businesses involved in blockchain technology — crypto mining hardware startups, Bitcoin exchanges, supply chains and more.
Blockchain technology uses a decentralized public ledger that records transactions and payments. It’s a peer-to-peer application — meaning no third parties — that paves the way for faster financial, medical and other transactions, each combined into timestamped blocks connected to one another in a never-ending chain.
With each passing year, it’s become more common for businesses to get involved in this rising technology. Even Google Cloud inked a deal in 2020 with venture-backed blockchain company Theta Labs that allows Google Cloud to run nodes of Theta’s blockchain network.
Blockchain is an emerging technology that can help companies conduct business more efficiently. Statista projects the size of the blockchain technology market to increase from $7 billion in 2021 to $39.7 billion by 2025.
Here are some ways blockchain can help companies grow their business and add value, which in turn could mean bigger profits for shareholders.
A look at the headlines can give any investor room to pause, what with spikes and dips that can vary by the hour, among other potential drawbacks.
Main stocks for you to invest in when putting your trust in the blockchain include:
Three main ETFs track blockchain stocks are:
Popular among investors, cryptocurrency is mined using blockchain technology. Top online brokerages that let you trade blockchain stocks as well as cryptocurrency like Bitcoin include:
Worth $3 billion in 2021, the global blockchain technologies market is expected to reach $39 billion by 2025. Projections are supported by the fact that blockchain technology is beginning to mature, and companies are more confident they can use it to add value to their business.
A 2020 blockchain trends study from Deloitte found that 40% of businesses plan to invest more than $5 million in blockchain in 2021. Adopting this technology would mostly settle in data validation (43%), data access sharing (40%) and identity protection (39%). Today, more than 60% of blockchain’s market value is concentrated in the financial sector.
This doesn’t mean you should invest in blockchain stocks without due diligence. In fact, some companies have put “blockchain” in their names and saw share prices spike, without any clear evidence of whether it could add value to their business.
And keep in mind that the blockchain industry is young. A 2020 outlook study by Gartner notes that while it has the potential to transform industries and the overall economy, blockchain is expected to mature as it becomes more scalable and better integrates with, for example, AI and the Internet of Things.
Blockchain stocks can yield great results for those looking to invest in a disruptive, future-thinking technology. But don’t overlook the risks inherent in these highly unregulated and volatile investments.
Information on this page is for educational purposes only. Finder is not an advisor or brokerage service, and we don't recommend investors to trade specific stocks or other investments.
Finder is not a client of any featured partner. We may be paid a fee for referring prospective clients to a partner, though it is not a recommendation to invest in any one partner.
Everything we know about the Neuraxis IPO, plus information on how to buy in.
Everything we know about the TXO Energy IPO, plus information on how to buy in.
Everything we know about the Brera IPO, plus information on how to buy in.
What you need to know about investing in the leading indicator for the overall US stock market.
Buying an IPO is as simple as buying any other stock, but not every trading platform offers IPO stocks.
Steps to owning and managing NVOS, with 24-hour and historical pricing before you buy.
Your simple and straightforward guide to ETFs, how they work and the different types available.
Find out how stock lending works, the extra income you could potentially earn and the risks you should be aware of. Plus, compare stock trading platforms that offer stock lending.
Everything we know about the SONDORS IPO, plus information on how to buy in.
Everything we know about the Bullfrog AI Holdings IPO, plus information on how to buy in.
