Digital Asset Investment
With the world getting increasingly digitized, every industry seems to be following suit. From the health sector, the military, the education sector, and now more than ever before the world of finance.
On that note, digital asset investment has shown a tremendous increase in value over the last 12 years. Digital assets were growing at a slow rate until the pandemic hit and forced people to re-evaluate their investments.
You see shook the world’s economy and a lot of investors incurred unthinkable losses. Interestingly, those who had earlier invested in digital assets were not affected as much. They continued to enjoy asset safety and even profits. The profits increased tremendously when more people started to invest in digital asset investment of fear.
By the end of 2020, a lot of people were interested in investing in digital assets.
Figure: Digital assets (source medium)
What are digital assets?
A digital asset is any digital file that provides value to your company. It must be easily accessible, searchable, and distribute.
When most people think of digital assets, they limit their thinking to cryptocurrencies. The truth, however, is that digital assets are not limited to digital currencies only. They include tokens, services, and even products.
- Non-conventional assets
This is where NFTs come in, have you heard of them? They are essentially digital assets that hold a given financial value in the real world. The list is long; I could not fully cover all the assets in this short article.
Although I will be covering them as different assets classes, NFTs are linked with Cryptocurrencies. The NFTs are bought and sold in exchange for Crypto coins or tokens
- Types of digital assets
Here are ten common types of digital assets, you will be surprised by some of the things that you will find on this list:
- Cryptocurrency coins and tokens – digital currencies whose operation is fully online. They are a store of wealth, an exchange of value, and a governance asset that allows the owner to participate in decision-making processes within a given platform.
- PDFs – Portable Document Format that captures a printed document as a digital image
- Videos – Videos are becoming a mainstream digital asset that is supported by different file types and format
- Presentations – presentations used for sales and marketing purposes are considered digital assets
- Audio files – they are exactly what their name suggests, they take different file sizes and formats depending on what you need
- Images – Different types of images file formats and sizes count as assets. We even have GIFs that mimic a short video
- Spreadsheets – As long as it holds valuable information a spreadsheet can count as an asset
- Graphics – this class is mostly entailed logos and other branding materials. They are supported in very many file types and formats
- Design Files – this is a relatively new asset class and people are yet to fully explore their potential
Why are digital asset investment important?
Businesses are beginning to acknowledge the impedance of digital assets and thus beginning to embrace them. Research suggests that the digital asset market grew from $1.24 Billion in 2018 to $6.9 Billion by 2024.
Digital assets are important because they provide immense value to you and your company. Not only are they a great investment option but they also come in handy anytime you want to build a marketing campaign or launch a product.
How to Invest in Crypto coins and assets
- Do your due diligence.
Before investing in any digital asset, it is crucial that you fully understand them. This is because although they can generate high returns in a short time, they may cause tremendous damage if not fully understood.
- Choose a good investment platform
Once you are done with your thorough research and study, the next step becomes to choose a valid trading platform.
It is important to invest either with the digital asset exchange, a digital asset broker, or a digital asset dealer that has been approved by the SEC. This way, you will reduce the risk of being tricked or scammed.
Sadly, many people opt for companies that have not been authorized by the SEC. When things go wrong, they usually have no one to turn to.
Before you entrust any person or company with your money, you must therefore consider a few parameters. They are as follows:
- What standards do they uphold?
- Do they have enough funding?
- What is the state of their security and risk management? (For instance their money-laundering measures)
- Begin your investment journey
Once you are satisfied with your platform of choice, the next step is to register according to the steps provided and begin your investment journey.
As you embark on this journey, here are a couple of things you must take note of:
- Do not be greedy, practice patience, and always do your due diligence
- You are just as likely to incur risk as you are to enjoy success
- The sphere is largely unregulated, so your safety is your responsibility
- Always have a plan, never invest based on a hunch or FOMO.
- NFTs and other asset types
Investing in NFTs will take a different form depending on the platform and type of asset you are dealing with. However, you should expect the following general format.
- Install a digital wallet – most people prefer Metamask, however, the choice is yours
- Sign in to your wallet through your preferred platform – OpenSea is popular for this
- Create a profile on your exchange platform of choice – once you are done with this step, you can proceed to buy some crypto usually Ethereum
- Link your exchange to your wallet – this will automatically update your transaction on your wallet
- Create your NFT collection – create a collection of your digital assets
- List your NFT for sale – post your listing and start making money
The process is much simpler, all you need to do is create an account on the appropriate platform, load your digital wallet with cash and then place the purchase based on the steps provided by your platform of choice.