How Equity Investors Create a Reliable Blockchain Portfolio Nov 05, 2019 at 10:40 // News Author
With the growing interest in investing in cryptocurrency and blockchain-related businesses, a significant number of different regulatory agencies are trying their level best to transform this embryonic industry, however, a lot of venture capitalists including equity investors are still stuck on what to do since they have less awareness of these disruptive technologies.
So, let’s now see some important ways of building a robust blockchain or distributed ledger tech (DLT) portfolio as an equity investor.
As you know, investors can invest in blockchain tech in various ways. These forms include: investing in cryptocurrencies of the potential blockchain or DLT project; taking part in equity or cryptocurrency-based crowdfunding promotions of novel DLT businesses; and buying shares in openly-traded DLT stocks. Investors need to mug up how to construct an equity portfolios and acquire a wide exposure to various distributed ledger technology industries.
Constructing a Blockchain Portfolio
An investor needs to be 100% sure about the goals of the business he/she is going to invest in before building an investment portfolio. The investor should first ask himself questions like; why he is making an investment; the amount of capital he needs to invest if he is to achieve the set target; the magnitude of the risk he needs to take if he is to meet his investment and business objective; etc. After addressing these questions, the investor will be able to ascertain the asset mix, the risk size he has to take, the total quantity of capital-at-risk, and the amount of return he expects to earn.
As a matter of fact, an equity portfolio that has a low-risk is going to be having large-cap stocks, and the high-risk equity portfolio requirement will possibly involve holding mid-and-small-cap stocks, and these are regarded to be riskier with massive level of Return on Investment (ROI).
The moment an investor is finally sure with the objectives of his business, the form of return needed to achieve the set targets, the risk he needs to take, he can then continue to search for the available blockchain opportunities in different active markets.