Investing in bitcoin: is there an alternative?
The further we go, the more it becomes clear that cryptocurrencies - not the most reliable investment tool. It's November and there is still no uptrend. During the time bitcoin has been trading flat, oil, for example, has managed to increase in price by 20% and almost completely lost the growth points.
Cryptocurrency "millionaires" are also fewer and fewer. In addition, the ban on online advertising has severely affected various projects in this sphere. However, cryptocurrencies are just a part of a large and fast-growing industry called "blockchain. And to forget about investing in it now is to miss a real opportunity to make money from blockchain in the future.
The value of technology
Almost any business related to new technologies may seem unclear and unpromising. But that is the main feature of venture capital investments - to invest in something that can "shoot out" at the most unexpected moment.
There are high expectations for blockchain today. Thanks to this development, it is possible to improve information infrastructure, to make various spheres of society and state life transparent and optimized.
While former "crypto-raisers" complain to each other on forums about how much money they lost in the fall of bitcoin, professional financiers are wasting no time. They create new opportunities for investments not related to cryptocurrencies, but to blockchain technology.
An investment replacement for bitcoin
The Reality Shares Nasdaq Blockchain Economy Index ETF (RSBLCN) is an exchange traded fund, which consists of shares of companies engaged in the creation of various products on the blockchain. It has been settled since December 2017. The volatility of the instrument is within 10%.
Maximum growth in the value of contracts +12%, maximum drawdown -7.5%. Now the quotations are near the index launching level (-2.15%), but the bitcoin exchange rate for the same period showed a final result below -37%.
The value of the tool lies in its ability to give a real assessment of market confidence in the importance of technology, as well as to diversify your risk by investing in a large number of companies.
The fund can invest 20% in high-quality securities, including foreign securities. If we turn to the top 10 constituents of the index, we see well-known and stable companies.
The risk of default of these companies is estimated to be very low. At the same time, bitcoin may not hold above $6000, and few can even approximate the scale of the potential damage.
In addition, Reality Shares Nasdaq Blockchain Economy Index can be used as an indicator for speculation in cryptocurrencies. For example, The situation can be regarded as a buy signal if the quotations fix above the previously broken support level of 980.00.
RSBLCN vs bitcoin
Research and comparison of index graphs with bitcoin rate showed that the fund formed a stable and clear support in the form of 980 level. And this level RSBLCN adheres quite disciplined.
If independent investing is more than a hobby for you, then don't limit yourself once and for all to a certain set of trading assets and analysis tools. At any time you may find an alternative that is safer and more profitable than your current trading style.
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