Feeling a little chilly in the heat of the summer? You must be a crypto investor who’s responding to the so-called “crypto winter.” If you want to make a good investment, blockchain assets should be considered.
Without a doubt, 2022 didn’t start out strong for cryptocurrencies. The global fizzle caused a ripple effect that has caused Bitcoin and Ethereum prices to dip drastically. Yet experts say it’s not a sign that crypto’s going to remain on rocky shoals forever. After all, the last crypto winter occurred just a few years ago and ended as a runway for the crypto boom that followed.
Of course, you don’t want to lose your shirt on a rollercoaster crypto market. You don’t have to. There are many ways to devote 5% or less of your portfolio toward crypto. (Five percent is the threshold sweet spot, according to experts interviewed by Time.) One that particularly stands out is to spread out your investment dollars in a variety of blockchain assets.
How Blockchain Assets Work
Blockchain assets aren’t too complicated to understand. They’re just assets that exist on a decentralized and public global blockchain ledger. Thanks to their immutability, blockchain assets can’t be changed. This makes them impervious to manipulation. For instance, the legal community has been abuzz with ideas about storing wills on the blockchain ledger. A will that can’t be corrupted may remove common questions related to its authenticity.
Pure cryptocurrencies such as Bitcoin are considered blockchain assets but most aren’t backed by tangible assets, with the possible exception of stablecoins. That’s one of the main reasons for all the recent ups and downs in the crypto marketplace. Since Bitcoin isn’t backed in the way that fiat money is, it’s destined to peak and flow-sometimes sharply.
Not all blockchain assets are given to such volatility. And those are the ones you may want to consider putting into your portfolio at the moment. Below are a few evolving types of digital assets that are using blockchain technology and may offer a better ROI than cryptocurrency.
1. Fractional real estate blockchain assets
For generations, some of the sharpest investors in the world have dropped money into commercial real estate. They bought skyscrapers. They bought resorts. Some even bought islands or vast parcels of land. Yet it can be tough for the average investor to tap into this kind of investment solo. That’s why fractional real estate available as a digital asset is a gamechanger.
RedSwan CRE, the leading player in the digital real estate of asset tokenization, leverages blockchain with capital market transactions. Investors own shares of commercial properties, which are then converted into security tokens.
The security tokens are stored on the blockchain and offer full transparency of ownership of each fractional shares owned. Tokens can be held in digital wallets or sold as desired. Their worth is derived from the actual value of the real estate itself, making them relatively impervious to the volatility of crypto winter ebbing and flowing.
Certainly, real estate goes through market changes ; however, on average, it’s far less volatile compared to many cryptocurrencies. Nevertheless, if you’ve been interested in crypto but hesitant about purchasing because of the possible downside risk, look into fractional real estate options. Commercial real estate has staying power and that’s terrific if you’re in the long investing game.
2. Fractional art blockchain assets
Perhaps you’d love to be able to own a masterpiece created by a recognized sculptor or artist. Problem is, you may not have the funds to head to Sotheby’s and put in a sizable bid. Additionally, you may feel a little uneasy figuring out which art is likely to hold its value. You don’t have to worry about those concerns when you invest in fractional art blockchain assets.
Like fractional real estate digital assets, fractional art digital assets allow you to own a piece of art. Not a literal piece, of course, but a figurative one. For example, you could own 1/100 of a sculpture that’s stored elsewhere. Your investment would be tied to whatever amount the sculpture was worth at the moment.
Remember that art is in the eye of the beholder, too. So if paintings aren’t your thing, that’s okay. Perusing a crypto-based art auction house like Otis, you’ll find a lot to invest in, right down to Pokemon cards.
3. NFT blockchain assets
Although the non-fungible token (NFT) scene has cooled a bit, it’s still showing life. It might be a while before an NFT sells for more than $69 million, that’s true. There’s no reason you can’t invest in NFT blockchain assets, though.
Unlike real estate and physical art pieces, NFTs are digital by nature. They’re built on the back of blockchain technology, making them native to crypto-style investing. With that being said, they can be fractionalized as well. You can either own a whole NFT or a part of one-it’s up to you and the way the NFT is designed to be sold.
One rule of thumb with NFTs is to do a little research ahead of time. See what interests you. NFTs can be decidedly fun to amass, just for the pure pleasure of owning something different. You probably don’t want to put 100% of your digital asset dollars behind NFTs, but there’s nothing wrong with dabbling.
Don’t be afraid of the cold winds blowing across the crypto plains. If the last post-winter surge is any indication, crypto will be on top again. Besides, you don’t need cryptocurrencies to be part of the crypto scene. You just need access to blockchain assets like NFTs, real estate, and collectibles.
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