Though modern investment structures have been in place for centuries, the 2020s have ushered in a brand-new golden age of trading, especially in digital assets. It’s easier than ever to acquire knowledge about investing. As well as starting on one’s digital investment journey with relatively low stakes. Both young and old investors have started to get in on the game.
If your own interest has been sufficiently piqued by the high levels of investment activity online, you may be wondering what digital investments you can pursue. Of all the options available, which ones will best align with your unique interests and financial goals? To help you decide, here’s a list of four digital investments that you can explore. Choose according to what best resonates with you and what fits your idea of your financial future.
Views on cryptocurrency often swing between two extremes. Either it’s the next big thing or it’s the next fool’s gold. But the world of crypto diversifies and the global crypto market swells to trillions of dollars in value. There’s mounting evidence that crypto tokens are a viable investment.
If you want to trade in crypto, there are many different currencies you can explore aside from the “big names” like Bitcoin (BTC) and Ethereum (ETH). You can also purchase a niche token like the up-and-coming privacy coin Monero (XMR) and store it in a Monero wallet, for example.
When you invest in crypto, you also invest in the security and efficiency of blockchain technology, i.e. tech that keeps an immutable digital ledger of all transactions involving the coin. Your choice to trade in crypto may also be highly beneficial in the future, as more traders are currently warming up to the asset and keeping the market alive with healthy amounts of activity.
Non-Fungible Tokens (NFTs)
Another type of digital asset that you might want to look into—especially if you’re into games, music, and the arts—is non-fungible tokens or NFTs. Ownership of an NFT can be thought of as akin to owning a rare and exclusive trading card or piece of memorabilia. Except for the record of ownership is online. Like cryptocurrency tokens, NFTs rely on blockchain technology to track ownership of artworks, videos, songs, and other digital properties.
Just like having ownership of a valuable physical collectible, the appeal of owning an NFT lies in having exclusive access to the original piece. If you’re the kind of investor who’s all about building unique value in your portfolio instead of busily trading assets, then the world of NFTs may suit you.
If your trading journey is in its greenest stages and you’d like to try a little bit of everything before committing to one asset, you can look into online freemium trading. This type of investment activity involves joining online trading platforms and getting the feel of a variety of trading options during a free trial period. Some options that you can get to know through freemium trading channels are cryptocurrency and online margin accounts.
One thing to remember about freemium trading is that free access to the investment options you like won’t last forever. Traders who go this route should make the best of their trial periods. And get to know the ins and outs of the assets they’re interested in.
Thematic Online Portfolios
There’s also the option for you to invest in a themed portfolio of digital securities. These typically work just like ordinary portfolios overseen by investment managers. Since they’re managed with particular investment objectives in mind.
But instead of being limited to your own personal financial goals, these investments go towards particular causes. Some examples include environmental investments, investments for a political movement, or investments for change to occur in a certain industry.
Experts in the tech and finance industry have observed that cause-driven digital investments have great appeal! Especially among millennial and Gen Z investors. This is because these demographics want to pool their resources towards a future that isn’t solely their own. If this is also your belief, you can seek out thematic portfolios whose assets align with a cause that’s dear to you.
Regardless of which of these options you choose, you must be mindful of how you invest your money. And what kind of outcome do you want out of your investment. One type of digital investment may work out better for you than another.
It could be due to its structure, the degree of involvement it will require from you, and other factors. Even then, the investments that seem perfectly cut out for you are not without their risk. It’s still possible to enter these trading activities and not come away with 100 percent of what you want.
In other words, be as careful with your digital investments as you would be with traditional securities. Think stocks, bonds, or real estate. That, above all else, is what will keep you on track to becoming a successful investor in the digital age.