{"id":2744,"date":"2022-08-14T22:17:30","date_gmt":"2022-08-14T22:17:30","guid":{"rendered":"https:\/\/kobotalk.com\/?p=2744"},"modified":"2024-12-17T16:19:14","modified_gmt":"2024-12-17T16:19:14","slug":"why-you-should-start-investing-in-digital-assets","status":"publish","type":"post","link":"https:\/\/kobotalk.com\/BLOG\/why-you-should-start-investing-in-digital-assets\/","title":{"rendered":"Why You Should Start Investing In Digital Assets"},"content":{"rendered":"Reading Time: <\/span> 8<\/span> minutes<\/span><\/span>
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Asset is anything somebody owns that has economic value.\u00a0 Things like real estate property, artwork, cash, company shares, etc.\u00a0 These are traditional views of what assets are.\u00a0 However, there is a new kind of asset that has become hot amongst knowledgeable investors: digital assets.\u00a0 Though they are relatively new, their adoption has entered mainstream.<\/p>\n\n

Why are digital assets becoming hot investment options<\/a>? Why should you invest in them and how do you invest in them? These are the questions this post attempts to answer.<\/p>\n

First……..<\/p>\n

What are Digital Assets?<\/h2>\n

Digital assets are things that are stored digitally and uniquely identifiable to create value.\u00a0 Thus, you\u00a0 own it for its value but cannot feel or touch it.\u00a0 Unlike physical assets such as real estate, equipment or securities with paper evidence, digital assets have no physical attributes.<\/p>\n

They are non-tangible,\u00a0 can created, stored and also traded over the internet.<\/p>\n

Types of Digital Assets<\/strong><\/h3>\n

Digital assets can easily be identified into digital content and the block-chain technology.\u00a0 Digital content comprises of web pages, text files, images, spreadsheets, etc while block-chain based digital assets comprises of currencies and tokens.<\/p>\n

Block-chain based assets plays multiple roles, including store of value, medium of exchange, and pass through value.<\/p>\n

Now here are the various types of digital assets<\/p>\n

#1. Cryptocurrencies<\/h3>\n

Cryptocurrencies or simply, cryptos are virtual money.\u00a0 They are mined on the block chain technology, decentralized, independent of the formal banking system and secures transactions using cryptography.<\/p>\n

Satoshi Nickamoto launched the first cryptocurrency in 2009. Today it remains the most popular and, perhaps the most valuable amongs the over 2000 crypto coins in the market.<\/p>\n

Other popular and very valuable cryptocurrencies include etherium, litecoing, binance coin, polkadot, and so many money.\u00a0 Investing in cryptocurrencies is now increasingly becoming an easy route for struggling people to achieve financial freedom.<\/p>\n

If this is also catching your fancy, here are some of the best cryptocurrencies to invest in now<\/a><\/p>\n

#2. Digital Token<\/h3>\n

Digital token is a security that gives one right to the development of block chain, distributed ledger or other digital infrastructure.\u00a0 This digital security is often issued in order to assist developers raise capital at the initial stages of developing a network.<\/p>\n

Tokens are not currencies, hence cannot serve as means of payment like cryptocurrencies.\u00a0 However, they are securities of value and this value can rise or fall depending on the performance of the underlying blockchain. Thus, you can call them investment tokens which means that they are asset that can give positive returns to investors.\u00a0 Just like you having shares in a company.<\/p>\n

Digital tokens are tradable and fungible. Some examples of digital tokens are: DAI, LINK, COMP and Cryptokities. Others are SUSHI, FTT, etc.<\/p>\n

Cryptocurrencies and digital tokens are the two most common block-chain based digital assets.<\/p>\n

#3. Non-Fungible Tokens (NFTs)<\/h3>\n

NFT is a representation of tangible, real word objects such as artworks, music and games.\u00a0 These assets are encoded on block-chain like crypticurrency.\u00a0 They are described as digital shadows of real world assets. This is\u00a0 because NFTs take on the value of the tangible asset and provide a digital record of its ownership.<\/p>\n

The NFT market is said to worth about $41 billion and still growing as the technology increasingly become the smart way of buying and selling digital works of art.<\/p>\n

NFT provides wonderful opportunities to artists and other types of content creators to profitably monetize their works.<\/p>\n

#4. Hybrid Tokens<\/h3>\n

Hybrid tokens are securities developed for the use of a specific platform. A token with two or more crypto derivatives<\/p>\n

They are hybrid because services two purposes: to explore the benefits or rights offered by the platform and for speculation. Thus, it benefits participants in the block chain who do so for the purpose of the right it offers them to develop their products and services.\u00a0 And also gives investors the opportunity to speculate with it for profit purposes. The Binance Coin (BNB).<\/p>\n

#5. Asset Backed Tokens<\/h3>\n

These are tokens that are designed for trading on tangible, physical commodities such as gold, oil, etc on the block chain.\u00a0 Tokenization of these assets help to make them more liquid and accessible to a wide range of users, including investors.<\/p>\n

#6. Tokenized Commerical Real Estate<\/h3>\n

This is similar to asset backed tokens (ABT).\u00a0 Tokenizing commercial real estates is a way of digitizing this valuable asset, enhancing its liquidity and enabling wider range of investors to access the real estate market.<\/p>\n

#7.Decentralized Protocol<\/h3>\n

A block chain protocol where the host and client node are combined to create a general network. It streamlines processes by removing third party intermediaries and allowing each node to interact directly with other nodes.<\/p>\n

It is monetizable, hence companies are now using their distributed protocols to create internal assets and sell them.\u00a0 They thereafter use the proceeds of sale to implement their platform.<\/p>\n

#8. Digital Content<\/h3>\n

Digital content are assets of great value.\u00a0 As I highlighted earlier, it comprises content that is stored digitally.\u00a0 These content are created online or created offline and taken online. It comprise of the following:<\/p>\n