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Blockchain technologies: exploring investment prospects and trends

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Sure enough, blockchain made a digital and financial revolution 15 years ago. What is more, this technology does not lose its relevance nowadays. Blockchain is still expanding the horizons of its practical and rational applications, including energy sector, healthcare and medicine, logistics, communications, banking and insurance services.

The fundamental feature of blockchain which makes it highly demanded is secure and transparent transmission and storage of data, which is almost impossible to replace, delete or falsify.

It is this feature that guarantees that technologies will remain in demand in the future and that it will be used in a variety of areas (including mentioned above), and that the blockchain technology market will attract more and more investments across-the-board.

It is obvious that such promising technology attracts investors, both at the level of individuals, venture investors or international investment funds.

Where one can find blockchain technologies nowadays?

Cryptocurrencies

Cryptocurrencies have been one of the most popular areas for investors. It is worth noting that cryptocurrencies are characterized by increased risks, high volatility of assets. Nevertheless, there are a large number of unprofitable as well as scam assets, there are also those stable coins that bring profit to their investors in the long term.

Decentralized finance

Decentralized financial instruments or DeFi are actively used in the field of smart contracts, including lending, investment platforms and other financial services. The high speed of payment processing, the absence of traditional intermediaries like banks and other centralized organizations, transparency of operations – all these make DeFi a current commercial trend.

Enterprise solutions

Large corporations and even some government agencies have begun to actively integrate blockchain technologies into their internal systems in recent years. Today companies engaged in logistics, air transportation, healthcare, and the entertainment industry use blockchain technology to process and store information, optimize business processes, and protect data. Some states have already implemented blockchain technologies into their federal tax and financial structures.

How to invest in blockchain technology

As Konstantin Pechesky, co-founder and expert of the Trinity investment club, notes, there are several investment options.

For example, in startups or stocks of companies that implement blockchain technologies or offer services based on these technologies. The second option is investing in mutual funds or exchange-traded funds (like EFT). The third option is investing in blockchain related assets, such as tokens (IDO, STO and others) or cryptocurrencies.

Prospects and features of investing in blockchain

Let us note that blockchain technologies are not a guarantee of successful and profitable investments. These technologies are just a tool that can be used both to create promising projects and to create unprofitable projects.

Like well-known NFTs, which were popular just recently. Despite the fact that the technology was considered promising, almost all investors who invested money in NFT assets lost their investments.

In addition, the hype on blockchain technology has caused the emergence of many projects that attract investments, but in practice are pyramids or fraudulent companies. There are dozens of them that are still promising unrealistic ROI and ‘100% success rate’.

Therefore, before investing in a blockchain project, we recommend studying the available offers and regulations carefully, diversifying your investment portfolio and using risk management skills.

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