It has been a while since I have looked at cryptocurrency along with cryptocurrency’s alternative investments IE Blockchains and mining companies. We actually have quite a few right here in Canada that you can invest in. Now I just want to say that I am very new when it comes to this sector and not just because cryptocurrencies are new but because I am very speculative of this type of investment. You always hear about the bad things with cryptocurrency including someone losing their password or their hard drive and all your money can be gone in a second. But you never seem to hear about the success stories like people who mine their own cryptocurrency or people who have bought and held bitcoin for the last 5 years.
Cryptocurrencies, blockchains and mining companies are different ways to invest in this sector and it could potentially be a good long term investment. A few companies that come to mind are Hive Blockchain Technologies LTD(HIVE), DMG Blockchain Solutions Inc(DMGI), Hut 8 Mining Corp(HUT), Riot Blockchain Inc(RIOT) and there is even a blockchain ETF called HBLK that is listed on the TSX. Now you might be wondering why blockchains are important to cryptocurrency and I will tell you right away in a somewhat basic breakdown. Blockchains are a type of database, in that database is a cryptocurrency’s information that not one person or group has control over but instead EVERYONE who uses it has control. This is important because it means that it stores all information such as transactions and everyone has access to view it.
Now, to talk about buying cryptocurrencies in themselves. As some of you may already know, bitcoin has recently hit an all time high of $42,000.00/USD which is absolutely wild. When I started watching bitcoin myself it was only about $3,000.00/USD and starting to climb. This was back in 2017 when cryptocurrencies first started to get noticed and take off. I’m not sure how many different ones there were back then but now there are over 4,000 different cryptocurrencies. Investing in cryptocurrencies is not the same as investing in blockchains and mining companies though. You can buy blockchain and mining companies through the major exchanges like NYSE, TSX, CSE and so on. With Cryptocurrencies you trade them on their own crypto exchanges and you should get yourself a crypto wallet as well.
I feel with the recent pullback in bitcoin right now more people are getting into it. I have friends who are investing in the smaller and cheaper crypto’s, no to to mention you don’t have to buy an entire bitcoin when you invest. You can actually buy a part of a bitcoin but that will still increase in value. Its always good to have options while investing. Its almost like buying fractional shares(if your brokerage allows that). Seeing how bitcoin has lost 25% of its value in less then a month I feel that it is worth at least keeping an eye on right now. It is even worth keeping an eye on the mining and Blockchain companies as well since they are both somewhat diversified.
I have talked to Colby in the past about bitcoin and he likes to keep his distance and then some. I personally don’t see anything wrong with diversifying into this sector. All I will say is that you should ALWAYS do your own due diligence and ONLY invest what you can afford to lose. This sector is still so new and like I said earlier that there are still scams out there but you should always do your best to mitigate losses. Our general style on this site is to look for a value company, invest and hold long term because we believe in the company and their mission. You can do that just as easy in this sector as you can in any other.
That is all for today and remember everyone, invest in yourself first.
*Disclaimer, I currently do not hold any positions in any cryptocurrencies, blockchains or mining companies.