Looking for the latest breakthrough in technology? Cryptocurrency occupies center stage. But direct investments in Bitcoin or its peers are dangerous.

The safest way to make money from the cryptocurrency craze is with two holdings in our portfolio — NVIDIA (NSDQ: NVDA) and Microsoft (NSDQ: MSFT). These stocks give you exposure to one of the hottest investment trends around. Without the insane risk.

It boils down to “blockchains.” Cryptocurrencies are digital means of money exchange that are secured by encryption. There’s no physical money. The exchanges are recorded in blockchains, which make up the infrastructure supporting the currencies.

Every cryptocurrency is linked to a blockchain, which is a distributed database of all transactions that have occurred in the currency.

Every time a crypto token is used, a record of the transaction gets added to an existing database that is distributed to all major “miners,” or creators of the database. These miners wield large computers that use complex algorithms to add transactions to the blockchain. The same miners use even more complex algorithms to create new tokens.

NVDA and MSFT are major blockchain players. The real opportunity lies in the private enterprise market for blockchains. Consider the following news.

The biggest stock story of the past week has been Eastman Kodak (NYSE: KODK). The 130-year-old company has jumped onto the cryptocurrency bandwagon.

KODK shares hit the stratosphere on Tuesday, on news that the firm has launched a cryptocurrency called “KodakCoin.” Think of it as digital money for photographers. The currency will be part of “KodakOne,” the company’s new image rights and royalties management platform.

KODK shares tripled over two days, before pulling back Thursday on profit-taking.

KodakCoin is a registered Initial Coin Offering (ICO). New cryptocurrencies have been the purview of microcaps. Kodak is the first major NYSE-listed corporation to implement a cryptocurrency.

Eastman Kodak’s started in photography. It has evolved into digital imaging and printing. Is the frenzy over KodakCoin overwrought? Or is KodakCoin a credible effort by Kodak to reinvent itself? Potential competitors abound. Notably, Apple (NSDQ: AAPL) may stomp into the space with its own blockchain technology for the iPhone.

ICOs like KodakCoin are growing in numbers. The trend shows no signs of slowing. Scores of companies are raising capital through issuing company specific tokens in return for liquid cryptocurrencies. Think Bitcoin and its closest competitor, Ethereum.

The total market capitalization of the cryptocurrency market is about $660 billion. That represents amazing growth, when you consider that forerunner Bitcoin was founded less than 10 years ago.

NVIDIA’s Edge

NVIDIA is the top maker of graphical processing units (GPUs). These chips allow a computer to present graphics. Blockchains use the company’s GPUs.

Blockchains have other uses than currency. They let businesses store encrypted data in a ledger. This gives NVIDIA prospects in commerce. NVIDIA is one of the largest makers of GPUs that cryptocurrency users rely on to speed up the network.

NVIDIA CEO Jen-Hsun Huang recently said about cryptocurrencies:

“The market need for it is going to grow, and over time it will become quite large. It is very clear that new currencies will come to market, and it’s very clear that the GPU is just fantastic at cryptography. Our strategy is to stay very, very close to the market. We understand its dynamics really well.”

NVIDIA recently released several new GPUs dedicated to cryptocurrency mining.

Don’t directly invest in cryptocurrencies. They’re too risky. But the practical business applications of blockchains is a huge plus for NVIDIA.

NVDA remains a buy up to $250.

Microsoft Goes COCO

Intel (NSDQ INTC) and Microsoft have joined forces to form “Confidential Consortium” or COCO. Microsoft provides the software; Intel the hardware. COCO generates the ultra-fast calculations needed for blockchains to function. COCO makes blockchains accessible to any firm that needs to keep track of a large number of tasks.

COCO is a private blockchain for individual firms. Warehouse inventory, HR files, supply chains — these tasks and more would benefit.

COCO is attached to a public blockchain such as Ethereum. To access COCO, the enterprise customer must use Microsoft cloud services and Intel hardware for the central processing units in the blockchain.

COCO is the first attempt to make blockchains accessible to any firm without the costs of creating one on its own. It promises greater security than current storage. It can accommodate more than 1,600 transactions per second.

If COCO succeeds as a prime mover in the blockchain business market, it would boost MSFT’s growth.

As tech stocks soar to new heights this year, an underlying theme is apparent: we’re now in the next wave of digital development. Blockchains exemplify this wave.

Blockchains, artificial intelligence and the Internet of Things. NVIDIA and MSFT are involved in all three. These trends could provide the impetus to keep the bull market alive in 2018.

Since 2014, technology firms have represented 42% of the rise of the U.S. stock market. Disproportionately driving the bull market have been stocks such as NVIDIA and Microsoft.

MSFT has enjoyed a nice run-up in price. The stock remains a hold. Buy it on dips below my price limit of $75.00.