Could Blockchain Lower the Risk of Investing?

blockchain risk investment

When most people hear the word ‘blockchain’, they automatically think of cryptocurrencies.

When it comes to investing, cryptocurrencies are possibly one of the riskiest assets you can put your money into.

We’ve seen instances where Bitcoin has lost over a fifth of its value overnight, and some of the biggest Bitcoin hacks have led to investors losing millions of dollars in what feels like a matter of seconds.

But now there is an increasing number of companies looking into how the technology behind Bitcoin could actually lower the risk of investing.

Investing is Always a Risk…

No matter how long you’ve been investing for, or how much money you’ve made from investments, there is always some risk involved when making investments.

Even deciding to invest in traditional stocks is a big step in itself.

When you’re a brand new investor or trader with very little experience, it’s far easier to make mistakes, here are some tips to avoid those mistakes.

As a result, the magnitude of these risks increases dramatically.

…But Investing in Crypto is a Particularly Big Risk

After watching in amazement as the price of cryptocurrencies shot through the roof last year, many people plunged their savings into Bitcoin in the hopes of being the next crypto millionaire.

It’s no surprise that the industry attracted so many new investors. Stories about people making their fortunes through crypto dominated the headlines, and the price kept going up and up. It seemed like a no-brainer.

However, with an exciting rise comes a devastating fall.

Over the years, there have been many incidents of people losing significant amounts of money by investing at the wrong time.

blockchain market investing

How Blockchain is Making Investing Easier

There are far more applications of blockchain technology than simply plunging all your money into Bitcoin and hoping for the best. In fact, many companies are now looking for ways to use the technology behind Bitcoin in order to make investing easier and less risky.

For instance, companies like TrustVerse are helping new investors to lower their risks by using blockchain technology to assist them in distributing their assets in a way that significantly lowers their portfolio volatility and helps to protect their assets from fluctuations.

The engine provides users with a stable (low risk-medium return, regardless of the volatility of the market) portfolio and manages the portfolio products to provide a stable return – completely free of charge to the users.

All users’ data and financial activity are encrypted on the blockchain.

The Technology Behind the Platform

The asset management platform operates through behavioral learning that is powered by an A.I. profiling engine, deep neural networks, and complex data structures at its core.

This enables the platform to provide optimized financial information using sophisticated algorithms and to provide all the necessary asset management information services that can be utilized to handle the digital wealth of you as an individual, your family, or even your entire company.

As well as handling your crypto-assets and your financial data that is stored electronically – whether that be online, on the cloud, or on a physical device – the platform utilizes smart contracts to help you to take control of the ownership of your entire digital identity.

This means that it can also help you manage any online accounts you have and help keep them safe, including the likes of your email account, shopping accounts, photo sharing accounts, video gaming accounts, and social media accounts.

Opening the Doors to a New Way of Investing…

A few years ago, investing was largely reserved for those who were already rich and could afford to fork out large sums of money to hire advisors and large firms to do the work for them.

However, with the rise of blockchain technology, we’re seeing a number of platforms designed to help everyday users to make low-risk investments without needing to put large amounts of money on the line, and without having to hire expensive third-parties to help them.

There will always be some amount of risk involved in investing – and for many people, that’s what makes it so enjoyable – but for those looking for a safer option, we may have found it.