Blockchain is one of the most disruptive technologies of our generation — but "investing in blockchain" means very different things depending on your goals. This guide cuts through the confusion and gives you a clear, actionable plan in plain language.
What is blockchain — and why would you invest in it?
At its simplest, a blockchain is a shared database that no single party controls. Records (transactions, contracts, ownership certificates) are stored in chronological "blocks" that are cryptographically linked together, making them nearly impossible to alter.
The investment case for blockchain is not just about Bitcoin. It spans financial services (DeFi), supply chains (logistics tracking), healthcare (medical records), identity (digital passports), gaming (NFT ownership) and enterprise software. Companies building this infrastructure are at an early but rapidly growing stage.
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Financial services
Cross-border payments, DeFi lending, tokenised assets
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Supply chains
Product authenticity, logistics tracking, compliance
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Healthcare & identity
Medical records, digital ID, credential verification
The 3 ways to invest in blockchain
There is no single "correct" way to invest in blockchain. The best approach depends on your risk tolerance, technical knowledge, and how much time you want to spend managing your investments.
Approach 1
Blockchain ETFs
Risk level
High (but diversified)
A blockchain ETF holds shares in 20–50 blockchain-related companies. You buy exposure to the entire sector in a single trade. This is the easiest and safest way to start — no stock-picking required.
✔ Pros
- Instant diversification
- No stock research needed
- Buy on regular broker (DEGIRO)
- UCITS regulated, very safe structure
- From as little as €1 (fractional)
✖ Cons
- Lower upside than single stocks
- Annual management fee (0.50–0.65%)
- Still volatile (50–70% drawdowns possible)
- Diluted by non-pure-play companies
Best for: Beginners, passive investors, and anyone investing less than €10,000 in total.
Compare blockchain ETFs →
Approach 2
Individual blockchain stocks
Pick individual companies like Coinbase, MicroStrategy or Marathon Digital. Higher potential returns than ETFs — but also higher risk. One bad earnings report can wipe 30% from a single position.
✔ Pros
- Higher upside potential
- No ETF management fee
- Direct exposure to best companies
- Can overweight your convictions
✖ Cons
- Requires company research
- Concentrated risk per stock
- Emotional discipline required
- US stocks involve currency risk
Best for: Investors with €10,000+ already in diversified holdings who want to add focused blockchain positions.
Analyse top blockchain stocks →
Approach 3
Direct crypto (Bitcoin / Ethereum)
Buy Bitcoin or Ethereum directly through a regulated exchange like Coinbase, Kraken or Bitvavo (Dutch-regulated). Maximum upside — but also maximum volatility and the added complexity of custody, wallets and private keys. Once you hold Bitcoin, the Lightning Network lets you make instant payments globally for under €0.01 — transforming Bitcoin from a pure savings asset into a functional payment layer.
✔ Pros
- Highest potential upside
- True ownership of digital assets
- No counterparty risk (cold wallet)
- Available 24/7, 365 days
✖ Cons
- Extreme volatility (80–90% drawdowns)
- Custody and security responsibility
- Complex tax reporting in NL/BE/DE
- No regulatory protection if exchange fails
Best for: Investors who understand crypto, have a secure hardware wallet setup, and want maximum exposure. Not recommended as a starting point.
Bitcoin self-custody guide →
Which approach is right for you?
Use this simple framework to find your starting point based on your situation:
Your situation
Recommended approach
Total investable amount < €5,000
Start with 1 blockchain ETF (Invesco BCHN or iShares BLKC)
€5,000 – €20,000 to invest
ETF as core (70%) + 1–2 stocks (30%): Coinbase and/or MicroStrategy
€20,000+ with diversified portfolio
ETF core + 3–5 stocks + small direct Bitcoin position (5–10% of blockchain allocation)
Technical background, familiar with wallets
Add direct Bitcoin exposure via hardware wallet, use Bitvavo or Kraken
Step-by-step: How to make your first blockchain investment
This walkthrough assumes you are a beginner starting with the simplest approach: a monthly ETF savings plan on DEGIRO or Scalable Capital.
1
Open a broker account (15 minutes)
Choose a broker based on your country. For the Netherlands, Belgium and Germany: DEGIRO or Scalable Capital are both excellent. Sign up with your ID and link your bank account. Both are regulated by ESMA-member authorities.
💡 DEGIRO is free to join. Scalable Capital has a free tier and a €2.99/month Prime tier with unlimited free trades.
2
Decide your monthly amount (5 minutes)
The most important factor in long-term investing is not timing the market but time in the market. Decide on a fixed monthly amount you can invest comfortably — even €50/month compounds significantly over 10 years. Never invest money you might need in the next 5 years.
3
Search for your chosen ETF (2 minutes)
In the broker search bar, enter the ticker: BCHN (Invesco, our top pick), BLKC (iShares, cheapest) or DAGB (VanEck, most concentrated). Select the Xetra (Germany) or Euronext Amsterdam listing for EUR-denominated shares.
4
Set up a recurring monthly buy (savings plan)
Both DEGIRO and Scalable Capital support automatic savings plans. Set your chosen amount to invest on the 1st of each month. This "dollar cost averaging" removes the psychological burden of timing — you buy more shares when prices are low and fewer when they are high.
✓
Review quarterly, rebalance annually
Check your portfolio once per quarter — not more. Blockchain markets are highly volatile and daily price-watching causes poor decisions. Review your allocation once per year and rebalance if your blockchain position has grown to more than 15–20% of your total portfolio.
How much of your portfolio should be in blockchain?
Blockchain is a high-risk, high-volatility sector. The right allocation depends on your age, time horizon and risk tolerance. Here are three example portfolio allocations:
Conservative
Risk-averse, near retirement
Global stocks ETF70%
Bonds20%
Blockchain ETF5%
Cash / other5%
5% blockchain allocation
Balanced
Average investor, 10-year horizon
Global stocks ETF60%
Bonds / REITs15%
Blockchain ETF10%
1–2 blockchain stocks10%
Cash5%
20% blockchain allocation ← recommended
Aggressive
High risk tolerance, 15+ year horizon
Global stocks ETF40%
Blockchain ETF15%
Blockchain stocks (3–5)20%
Direct Bitcoin20%
Cash5%
55% blockchain allocation
⚠ Allocation warning:
Blockchain positions over 20–25% of a total portfolio are considered speculative-grade by most financial planners. If blockchain drops 80% (as it did in 2018 and 2022), a 50% portfolio allocation would wipe out 40% of your net worth. Know your risk before sizing up.
7 mistakes beginner blockchain investors make
1
Investing money you need within 5 years
Blockchain markets are highly volatile. You must be able to hold through 70–80% drawdowns without needing the cash. Emergency funds, rent money, and near-term savings have no place in blockchain investments.
2
FOMO buying at market tops
Most retail investors buy when prices are already up 10x, driven by news headlines. The solution: a fixed monthly savings plan removes timing decisions entirely and lets you benefit from averaging.
3
Panic selling in corrections
The investors who lose money in blockchain are usually not the ones who held through crashes — it is those who sold at the bottom and missed the recovery. Set a position size you can psychologically hold through -70%.
4
Ignoring fees and tax
A 0.65% annual ETF TER compounds significantly over 20 years. And for Dutch investors, capital gains from ETFs and stocks are subject to Box 3 wealth tax. Factor both into your return calculations.
5
Over-concentrating in one company
Going "all-in" on MicroStrategy or a single miner is speculation, not investing. Even if your thesis is right, company-specific risks (fraud, bankruptcy, regulatory action) can zero out a single position.
6
Leaving crypto on an exchange
For direct crypto investors: if you don't control your private keys, you don't own your Bitcoin. FTX's collapse in 2022 wiped out billions in customer funds overnight. Use a hardware wallet for significant amounts.
7
Skipping the KID (Key Information Document)
All EU-regulated ETFs must provide a KID — a standardized document explaining risks, costs and expected scenarios. Read it before investing. It takes 5 minutes and can change your understanding of what you are buying.
Frequently asked questions
Can I invest in blockchain as a Dutch investor?
Yes, absolutely. Dutch investors can buy blockchain ETFs and US-listed blockchain stocks through any regulated broker (DEGIRO, Scalable Capital, IBKR). Direct crypto is also legal in the Netherlands but platforms must be registered with De Nederlandsche Bank (DNB) for AML compliance.
What is the minimum amount to invest in blockchain?
With fractional shares on Scalable Capital or Trade Republic, you can start from €1. In practice, €50–€100/month is a sensible minimum for a savings plan to make transaction costs negligible.
Is blockchain a good long-term investment?
The long-term adoption case for blockchain technology is strong — institutional adoption, tokenisation of real-world assets, and DeFi are all growing rapidly. However, whether individual stocks or ETFs will outperform the broader market over any specific 10-year window is uncertain. Blockchain should be one part of a diversified portfolio, not the whole of it.
Do I have to declare blockchain investments to the Dutch tax authority?
Yes. For Dutch residents, ETF shares and crypto held on 1 January must be declared in Box 3 of your tax return. Gains are taxed on a deemed return basis, not actual gains. Crypto is declared at its market value on 1 January. Consult a Dutch tax advisor for your specific situation.
ETFs vs stocks: which has historically performed better?
Individual blockchain stocks have generally outperformed ETFs in strong bull markets (MSTR +180% vs BCHN +67% in the past 12 months) but suffered much deeper drawdowns in bear markets. Over a full market cycle (4–5 years), the evidence is mixed — ETF diversification often wins for risk-adjusted returns.
Disclaimer: This article is for educational and informational purposes only and does not constitute financial advice. Blockchain investments carry significant risk of capital loss. Past performance is not indicative of future results. Always conduct your own research and consult a qualified financial advisor before making any investment decisions.