Every other day, news about blockchain and cryptos hit the headlines, and you cannot fail to take note. Recently, El Salvador made Bitcoin a legal tender. Big banks, from Goldman Sachs to Barclays, are also investing in blockchain. The truth about blockchain is that it is the new technology helping to shape not just the finance industry but all other sectors. So, let's hit the big question, "how can you position yourself to reap maximum benefits from cryptos?' Here are some suggestions.

What is Blockchain? How Does It Work?

Before we can tell you how to take advantage of blockchain, let's start by understanding what it is. This is a system of recording information that ensures it is impossible or very difficult to hack or make changes. Essentially, it is a database or digital ledger duplicated and distributed in a network of computers.

When a transaction is run on the network, the details are captured and added in the next block. Every block contains a timestamp that helps to identify the previous one so that they join to create a sort of chain that grows progressively. Although the pioneer blockchain, Bitcoin, was developed to help make sending funds easy and fast, newer ledgers have more uses, such as driving traceability in supply chains and crypto lending.

Next, we take a closer look at the main ways that you can use to position yourself to take advantage of the fast-growing blockchain technology.

Buy Cryptos and Hold

As the blockchain and crypto niche unfold, it implies that it is time to act smart. Think of this as an emerging brand with products that are in high demand. The best thing that one can do is grab its stocks and see the investment grow in leaps and bounds. That is the situation where we are in as far as cryptos are concerned.

The growing demand for blockchain technology and cryptos is expected to push the price up by a huge margin in the coming years. Let's take the example of Ethereum. Following its indication that it is shifting its consensus protocol from proof of work (POW) to proof of stake (POS), the value of its coins has been growing steadily. In January 2019, the price of Ethereum was US$137, but it has shot up by a huge margin, reaching US$3,300. This price is expected to grow even further, and it is possible that its price will surpass Bitcoin at some point.

Ethereum is only one coin that you can target to take advantage of blockchain technology. Consider working with hi.com to learn more and pinpoint the coins with greater potential.

Use the Coins to Make Passive Income

When you buy the crypto coins, holding them as you wait for the price to grow is a good idea, but there is a better way. Instead of leaving them in the wallet, why not use them to make some passive income. The commonest method for making passive income using blockchain and cryptos is staking.

Staking is the process of committing and locking your coins so that they are used to protect the blockchain network and confirm transactions. In return, you are rewarded with a portion of the fees paid by the people who use the blockchain network. To stake your coins, you only need to identify a decentralized finance (DeFi) platforms that offers staking services. Then, send your coins so that they are pooled together with others to increase the chances of making more returns.

Note that staking is not selling your coins. So, your coins will be returned to your wallet at the end of the staking session. Some staking platforms pay as high as 20% of the value of staked coins.

Shift to Blockchain Networks for Payments

Joining a blockchain network, such as Bitcoin or Ethereum, gives you an additional channel for making payments. But why should you shift to this new channel?

Unlike banks or credit card companies that are driven by profits, blockchains are not. Here, all operations are peer-to-peer and the only fee paid is used to incentivize nodes for confirming transactions. Therefore, you are sure of enjoying the reduced cost of sending funds, whether for payments to family or friends, especially those living abroad. See: why stick to the expensive, complex, and non-confidential methods of sending funds? It is time to shift to cryptos.

The blockchain and cryptos are here, and it is time to get used to them. The methods we have listed in this post can help you to race ahead and take advantage of the fast-growing niche. You should also understand the risks that come with using blockchain, such as the high volatility. To do all of these, and take advantage of blockchain technology, make sure to work with experts, and one of the best is hi.com. They can help you to send, save, earn, and convert cryptos, plus a lot more.