How to Build a Blockchain Portfolio as an Equity Investor (With Examples)

Home » Bitcoin » How to Build a Blockchain Portfolio as an Equity Investor (With Examples)
October 17, 2019 by
How to Build a Blockchain Portfolio as an Equity Investor (With Examples)

Blockchain investing comes in many forms. You could:

Invest in the digital tokens of the most promising blockchain project.
Participate in equity or token-based crowdfunding campaigns of new blockchain startups.
Purchase shares in publicly-traded blockchain stocks.
In this guide, you will learn how to build equity portfolios that provide you with exposure to the blockchain industries.

Building a Portfolio

Before constructing an investment portfolio, you need to be clear about what your investment objectives are. The key questions you need to ask yourself are:

Why are you investing?
How much will you need to invest to meet that target?
How much risk will you need to take to meet your investment objective?
Stacked wooden blocks with question marks on them.

The responses to these questions will determine your asset mix, the amount of capital-at-risk, the expected return, and how much risk you will need to take.

A low-risk equity portfolio will be composed of mainly large-cap stocks while a higher risk/return requirement will likely entail holding mid- and small-cap stocks, which are considered riskier but generally come with a higher ROI potential.

Once you are clear as to what your objectives are, what type of return you require to meet the objectives, and how much risk you are willing to take, you can start looking at the blockchain opportunities available in the market.

Blockchain Opportunities in the Stock Market

We can categorize blockchain stocks into two types:

Large-cap stocks with a blockchain element
Pure-play stocks
Large-cap stocks include technology giants such as IBM, Microsoft, and Oracle, which offer blockchain-related solutions as part of their overall business offerings, as well as financial institutions, such as ICE, JPMorgan, and Nasdaq, that are betting big on digital assets and the blockchain.

Pure-play stocks, on the other hand, focus primarily on blockchain technology or digital currencies. These companies are generally small companies with low market capitalization. Examples of pure-play stocks would be publicly-traded bitcoin mining companies HIVE Blockchain and Northern Bitcoin. Continue reading…

Leave a Reply

Your email address will not be published. Required fields are marked *

Advertisement
Newsletter
Advertisement
© Copyright 2018 Coinstituency. Risk Disclosure: Coinstituency will not accept any liability for loss or damage as a result of reliance on the information contained within this website including data, quotes, charts and buy/sell signals. Cryptocurrency trading on margin involves high risk, and is not suitable for all investors. Before deciding to trade foreign exchange or any other financial instrument or cryptocurrencies you should carefully consider your investment objectives, level of experience, and risk appetite. Coinstituency would like to remind you that the data contained in this website is not necessarily real-time nor accurate, meaning prices are indicative and not appropriate for trading purposes. Therefore Coinstituency doesn’t bear any responsibility for any trading losses you might incur as a result of using this data. Coinstituency may be compensated by the advertisers that appear on the website, based on your interaction with the advertisements or advertisers.