21 October 2022
The speed at which blockchain technology develops nowadays is challenging to follow. Though it emerged only in 2009, Bitcoin has imposed itself as mainstream. Businesses, investors, and traders embrace the trend, hoping to become more efficient and successful in their efforts.
Moreover, blockchain technology has vital applications in multiple industries, such as healthcare, logistics, retail, supply chain, and entertainment. Such apps aim to make business operations faster, more transparent, and more profitable.
Experts predict that the global blockchain market value will jump from $3.3 billion in 2021 to almost $60 billion in 2028. This increase carries a CAGR of about 44.5% between 2022 and 2028. To meet the demand, an ever-growing number of companies rely on a blockchain investment platform. Quickly but securely, the blockchain-enabled ecosystem is gaining dominance over the world.
This blog post debunks some myths about blockchain investment platforms, how they work and how to pick the best option for your organisation. It also lists the aspects to consider when investing in blockchain in 2022.
Blockchain exchanges offer the best way to invest in and trade with various digital assets. They are efficient, reliable, and straightforward to use. Moreover, retail investors use this matching engine to power their exchanges, whereas individuals trade cryptocurrencies at a speedy, fair, and liquid desk.
Blockchain platforms execute value transfers using a set of cryptographic, unchangeable transactions that all network participants share. Records involve a time stamp and links to previous transactions. As a decentralised machine, the platform keeps track of digital assets and records each activity in a distributed immutable ledger.
So, what can you do on a blockchain investment platform? First, you can monitor the markets, check the status of orders, deposit and withdraw funds, and trade crypto assets.
Blockchain exchanges emerged to assist merchants in finding an efficient, intuitive, and seamless trading method. With time, these platforms get new features and innovative solutions. Their sole purpose is to make investments more strategic, faster, and lucrative.
The easiest way to use a blockchain investment platform is by purchasing cryptocurrencies. Here’s an overview of what you should do to invest in crypto.
Check your investment options by researching the most popular and valuable cryptocurrencies. Currently, Bitcoin and Ethereum top the list. However, there are 6,000 other digital assets to choose from, plus a myriad of non-fungible tokens (NFTs). Typically, you’d pick a cryptocurrency that best aligns with your investment portfolio and risk tolerance.
Regardless of the selected assets, you should find a reliable blockchain investment platform like Nexinter. Since each exchange offers different cryptos and fee structures, ensure you know your rights before entering negotiations.
The step involves funding your crypto account with a local currency, such as USD, EUR, or GBR. For this purpose, you’ll need to link your debit or credit card (PayPal accounts are also eligible), depending on what the blockchain investment platform accepts.
The deposit needs to clear before you can purchase cryptocurrencies. The procedure is often instantaneous without involving intermediaries. Once completed, click the buy button for the asset of your choice.
Finally, you’ll have to decide where to store the keys for your cryptocurrencies. One option is to keep them in a wallet hosted by the blockchain investment platform. Alternatively, you might decide to store your cryptos in a private, less accessible e-wallet. Hardware wallets are the most secure ones.
Answers range broadly and depend on various reasons. International corporations and whales take the lead in this respect. They entrust funds to savvy crypto exchanges that know how to safeguard and multiply the assets. Most companies involved in blockchain investments come from the USA, but Chinese and Indian enterprises are quickly following behind.
Individual merchants also invest in digital assets. They see the enormous potential of cryptocurrencies and decide to diversify their investment portfolios. Moreover, crypto platforms ensure the funds remain safe and anonymous, with a bright future for upscaling business operations.
Finally, many individuals are well-versed in cryptos and know how to make the most of heavy price fluctuations. Such traders follow spikes in value, and when rates skyrocket overnight, they sell their assets and generate profit. When prices go down, crypto-smart investors focus on buying.
Your journey doesn’t stop here because you must explore a few other factors before you choose the right blockchain platform. Pay attention to the following:
Overall, there are permissioned and permissionless blockchain platforms. Hence, you must understand the features of both types to make the final decision. A permissioned network will require participants to get authorised before accessing the network. Permissionless blockchain platforms don’t ask for authorisation.
Security is a crucial factor for any organisation, including yours. If you keep sensitive information, you must ensure that no data frauds or breaches occur. Therefore, pick a blockchain investment platform with an excellent record of preventing and handling security issues.
If you plan to incorporate smart contracts in your course of work, check whether the blockchain platform supports them. They are vital for validating, imposing, and triggering actions on the blockchain system.
The concept refers to the TPS rate. For instance, Bitcoin can handle about seven transactions per second, whereas Ethereum can execute 20. Pick the transaction capabilities that meet your requirements.
Nexinter is a blockchain exchange that runs on the Ethereum network, one of the most revolutionary for companies. Thanks to complex algorithms, our blockchain platform offers 100% security of your operations and complete transparency.
We can tailor a unique solution that fits your business plan. The package will include crypto payments in your financial transactions and digital assets storage. Entrust your progress to Nextinger for a fast and safe transition to the digitalised realm.