Digital Assets – Your Complete Guide

Did you know that more than 16 percent of adults in the United States of America have purchased digital assets? The digital asset market is booming around the world, and if you wait too long, you might miss your chance to hop on board.

You’ll have plenty of options to choose from if you decide that the time is right to find digital assets that get used as currency. Investable assets like Bitcoin and non-fungible tokens are a great way to diversify your holdings and grow your wealth.

The good news is that you’ve found the perfect article to help you learn about the best digital asset options to invest your money into. Keep reading this article to learn about the best digital assets today!

Bitcoin

The main digital asset that immediately comes to mind when people think about purchasing digital assets is Bitcoin. Bitcoin has been around since 2009, but it’s grown immensely over the past five years.

It is the most dominant option in the digital asset market if you’re looking to switch over to using digital currencies. You can use it as an alternative to stocks, bonds, and precious metals when it comes to investable assets.

The market value for Bitcoin is now over $1 trillion, making it the most popular and valuable form of cryptocurrency around the globe. It’s a great option to purchase Bitcoin if you’re ready to add some digital assets to your holdings in 2022.

Ethereum

Another popular cryptocurrency option that you should consider is Ethereum. Like Bitcoin, Ethereum is known around the world and it has a market cap of more than $200 billion.

The coins that you purchase or trade with Ethereum are referred to as Ether. Ether stands apart from Bitcoin because it has a purpose within the Ethereum blockchain. Many businesses use Ether as a way to create smart contracts or to develop software through the Ethereum platform.

It’s safe to say that Ethereum has had a massive impact on blockchain technology and the potential uses that it provides. You can’t go wrong with adding some Ether to your digital wallet if you’re looking for the best options for digital assets.

Binance Coin

Binance Coin is another great option if you’re looking at purchasing some digital assets in the near future. It’s the third-largest form of cryptocurrency, and it’s much more affordable to get started with than Ethereum or Bitcoin.

Many speculators believe that Binance Coin will end up dominating the world of cryptocurrencies, so it’s a good idea to get started with buying these coins before they take off. The Binance Smart Chain is impacting the value of Binance Coin since you can use these coins to create smart contracts similar to those made through Ethereum.

Non-Fungible Tokens

Non-fungible tokens, or NFTs, have gained a massive following over the past few years. These unique pieces of digital art took off in a big way over the course of 2021 to the point that Premier League football clubs and football superstars started creating their own lines of NFTs.

If you’re new to the world of digital assets, then you might wonder about what are NFTs. The value of some of these NFTs has reached tens of millions of dollars. If you plan on adding some NFTs to your asset portfolio, then you should get prepared to spend some major dough.

Still, they’re great to show off to friends, especially when you own some of the rarest NFTs available on the market. They also tend to increase in value, so there is always a good shot at increasing your return on investment by selling to a motivated buyer that wants to add to their digital asset collection.

Tether

Tether is different from many digital assets because its value is tied to the United States Dollar. The market for Tether is approaching $40 billion, making it a great option if you’re looking to purchase some digital assets.

One of the things that scares many people away from investing in digital assets is the market volatility associated with cryptocurrencies. Getting Tether will protect you from that volatility. 

It’s a great digital asset to start with if you’re new to getting and using digital assets. It works as a halfway point between the U.S. dollar and decentralized forms of crypto.

The fact is that Tether is tied to the U.S. dollar’s value, which is great if you need peace of mind, but you need to note that there are issues and controversies associated with this digital asset option. There are instances of different exchanges using Tether to try to hide their financial losses.

Cardano

Another form of crypto that is gaining more traction in the market is Cardano. Cardano is great because similar to Ethereum and Binance Coin, you can use Cardano to create smart contracts. It’s changing the game for businesses and law firms alike.

The market for Cardano is rising at an impressive rate, with the market cap reaching $33 billion. It’s also one of the first forms of crypto that allows users to create tokens of their own.

One thing to keep in mind with Cardano is that it hasn’t gained a popular application yet. You’ll encounter more risk if you plan on getting digital assets like Cardano since there isn’t much to back up the value of this digital asset.

Polkadot

Beyond having a fun name, Polkadot provides a ton of value for those looking for new investable assets that they can purchase and grow their wealth through. Its value comes from the fact that it makes life easier for crypto users that want to transfer data and tokens from one chain to another.

It’s a great option if you’re looking for a digital asset that has the potential to blow up. Many in the digital asset industry believe that Polkadot has what it takes to overcome Ethereum when it comes to blockchain networks.

The big advantage that users gain with Polkadot is the ease with which they can create different things using the blockchain behind the currency. The majority of people making use of Polkadot are developers that use it to fuel their creations.

Tips for Investing in Digital Assets

Investing in a bunch of digital assets is a great way to make your portfolio more diverse, but you shouldn’t start throwing your money at every new form of crypto that gets released. Finding a digital format that gets used as a currency is a big key to making a wise investment.

Here are some helpful tips for getting the best digital assets for your portfolio.

1. Diversify Your Digital Asset Holdings

As with traditional investing, you need to make sure that you have a diverse number of digital assets. The volatility and risk associated with non-fungible tokens and other digital assets are easy to hedge against if you spread your money around to multiple digital assets that aren’t connected to each other.

Going all-in on one form of cryptocurrency is asking for a disaster. All it takes is the value dropping for you to lose most of the money that you’ve invested. It’s better to spread your hard-earned cash among multiple digital asset options.

2. Use Copy Trading

Copy trading is what it sounds like, and it involves monitoring the investments and moves that professional traders make. Start by finding some successful investors that specialize in digital assets.

The best way to find someone to copy is by looking at their past investments and their performances. From there, it should be easy to link your account to the movements that these other traders and investors make with their money.

It’s a great way to automate your investing by putting your trust in experts that have years of experience with digital assets.

3. Hedge Your Crypto Trades

Hedging is the process of decreasing the risks that you’re facing with your investments. You need to make sure that you hedge your trades if you plan on investing in digital assets for your portfolio. The basis of hedging your trades is that even if one digital asset loses value, it’s possible that other assets will increase in value to offset your losses.

Many crypto investors are looking at short-term and long-term trades on the futures market as an effective way of hedging their investments. If you think that a form of crypto will increase in value by a future date, then you can agree to buy it at today’s price on a day in the future.

Start Building Up Your Digital Assets

Now is the best time to get started if you plan on investing in digital assets for your investment portfolio. Popular forms of crypto like Bitcoin, Ethereum, and Polkadot are great investment options along with non-fungible tokens.

These digital assets create value thanks to the blockchain technology that they use, which provides great security and privacy using currencies that are decentralized. Make sure that you hedge your crypto investments by getting multiple coins for the best results.

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