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 \u2014 and how to trade them.<\/p>
Blockchain stocks are shares in companies like IBM (NYSE: IBM)<\/strong> and Square (NYSE: SQ)<\/strong> 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 \u2014 crypto mining hardware startups, Bitcoin exchanges, supply chains and more.<\/p> Blockchain technology uses a decentralized public ledger that records transactions and payments. It\u2019s a peer-to-peer application \u2014 meaning no third parties \u2014 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.<\/p> With each passing year, it\u2019s 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\u2019s blockchain network.<\/p> 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<\/a>.<\/p> Here are some ways blockchain can help companies grow their business and add value, which in turn could mean bigger profits for shareholders.<\/p>Why invest in blockchain stocks?<\/h3>