Looking to become an investor in 2022? Investing in physical assets such as property isn’t enough since these assets are always subject to the prevailing economy and can decline in value at any moment.
Although considered volatile, digital assets are an investment option that guarantees high ROI. What’s more, these assets are not limited to cryptocurrency alone but also include digital tokens such as NFTs and other products.
If you’ve been toying with the idea of buying digital assets, here are reasons why you should take the step now.
Flexibility – Digital Ecosystem
Most people hear of digital assets and only think of Cryptocurrencies like Bitcoin and Ethereum. While these were the initial version of digital assets that could only be traded at the time, today platforms such as Pastel have redefined this role.
As an investor, you can now participate in what is called mining. This is the process used to generate non-fungible tokens NFTs among other digital tokens, which you trade and make a profit online.
The tokens are flexible and can be used as a representation of fractional real estate, art or media files in the real world.
Admittedly, digital assets such as crypto have been in the market since 2009, but much wasn’t known about them then. However, 2017 proved to be a turning point as more and more people accepted and traded digital assets.
Bitcoin, in particular, was buying at $7000 and selling at 16, 000 or more, depending on the platform you use. This means the ROI is faster and much higher than when dealing with physical assets.
Plus, with many online platforms accepting digital payment systems, buying and selling commodities online is possible.
Investing in physical assets can sometimes be a cumbersome process. Take, for example, buying a house involves several intermediaries all of whom are looking to profit out of the deal.
Furthermore, these people could make errors on paperwork. Investing in digital assets gives you a sense of comfort knowing your assets are recorded on a ledger distributed across multiple networks for safety.
Simply put, as an investor, all you do here is set the ball rolling by initiating the transaction and then observing as it unfolds.
If you already have a daytime job or other assets but would want to increase your income-generating sources, digital assets are your best bet. Think about digital assets as money working for you since you put little to no extra effort apart from investing the initial capital so you can focus on other priorities.
In fact, specific websites can handle almost everything for you, and your work is just confirming whether the money is in your account. Furthermore, there’s no limit to how many digital assets you can own, unlike some physical investments that have limitations.
Life can sometimes deal you a bad hand so much that you’re forced to liquidate your assets. When facing financial constraints it may be difficult to liquidate your physical assets within a short time since the process of buying and selling is longer.
What’s more, since most physical assets may not be under your immediate control but with financial institutions, the right to liquidate them may be denied. Not with digital assets, though. Provided you keep any paraphrases, keys, or addresses required, accessing your assets takes seconds. You’re not controlled by a certain entity or limited to specific trading hours, either.
Lower Overhead Cost
Normal investing requires huge overhead capital that sometimes isn’t readily available. If you plan on hiring workers and renting a space, these are costs that take a significant portion of your budget.
On top of that, you must worry about distribution, inventory, storage costs, and sometimes even legal fees. Starting a digital asset business requires little to nothing, except the initial capital, which makes the ROI higher.
Perhaps the only investment you may have to do is learn how digital assets work and how to leverage the most out of them so you can make a killing.
The involvement of brokers, banks, and other exchanges can make physical transactions much slower. This is because each of them takes time to ensure everything is in order before approving the transaction forward.
Digitalized assets require fewer infrastructures, and hence, the process is fast and efficient, as you’d expect. In addition, there isn’t much clearance involved at different stages of the cycle, which eliminates the need to wait days.
Digital transactions typically occur in minutes or seconds, depending on the platform and the number of users at the time.
The custom has always been to make money buy a few physical assets like property and live on these. However, the narrative is quickly changing as digital assets become popular among the young and old. Take the step of investing in digitized assets today to obtain all these benefits.
Be safe out there.
Popular posts on Bag of Cents: