How to Invest in Digital Assets

There are so many ways to invest nowadays, and people love nothing more than to buy low and sell high.

However, it’s not always that simple. You can make things a little more palatable if you choose to invest in an industry that interests you. That way, you can read up on the latest news and better assess the current trends and developments.

Right now, some of the best investments have come in the world of digital assets, and the beauty of them is that there are opportunities to get involved across many sectors of industry. So, the good news is that there’s a high probability you’ll find something that you will already have an interest in.

How to Invest in Digital Assets

What are digital assets?

The NFT or non-fungible token is a unique, digital asset that belongs only to its owner and cannot be exchanged for another item or items as it’s a true one-of-a-kind entity. They’re built on the blockchain, the latest digital technology that allows buyers to see their authenticity. The simplest way of thinking of it is as a digital piece of art; not only do you own the item, but you’ve also got something akin to a digital certificate of authenticity in your name thanks to the technology it’s built upon. NFTs operate on the same infrastructure as the best cryptocurrencies including Ethereum. In fact, in the art world, thanks to the transparent nature of the technology, proving authenticity and ownership within seconds has brought a huge interest in NFTs. The number of interested buyers have risen from just over 1,300 to 130,000 in just two years, meaning there are growing options for people to trade their investments and potentially make a profit.

Another sector that has embraced digital assets, giving investors a chance to turn a profit, has been the sports world. There are no more invested people in the world than the sports fan; they’re someone who will collect almost anything to do with their favourite sport or team. So how about offering them something connected to their team that allows them to have that piece of unique memorabilia and open the doors to interacting with their idols too?

That’s something that has been facilitated with the sales of fan tokens. These one-of-a-kind digital tokens, branded in the teams’ colours, allow their owners to engage with their clubs via owner exclusive polls and VIP experiences. As you can imagine, they’ve not only sold well, but as they’re so unique, they’ve also risen in value in line as fans clamour to get hold of them. Clubs such as Everton, Arsenal and Paris St Germain, who are amongst those that have offered the tokens to fans and investors, have seen token values rise by as much as 43%, literally overnight, although this isn’t guaranteed.

How to invest in digital assets

So if you’re interested, how would you invest in such NFTs and digital assets? It’s a pretty simple process.

You must first purchase a sum of cryptocurrency, which is built and authenticated on the same transparent blockchain technology as the asset you’re looking to buy. You can do this on various crypto exchanges and apps; the cryptocurrency is then transferred into your crypto wallet. See our guide on how to invest in cryptocurrency for more information. Think of it as your bank account, but you’re storing the crypto rather than traditional currency.

Next, you connect your wallet to an NFT marketplace or relevant platform of choice to make your digital asset purchase. Whether it’s art, sports memorabilia, or something else that takes your fancy, there’s a marketplace for what you want. Some marketplaces deal in specific assets; for example, if you’re looking at fan tokens, you may have to connect them to the officially recognised marketplace for that club or organisation. However, once you have done that, you’re ready to browse and decide which digital asset you wish to invest in before purchasing.

Finally, in most cases, after making your purchase, the digital wallet will be the place to store the digital asset, too. Thus keeping things organised and ready for you should you see an opportunity to trade it and possibly see a good return on your investment.

However, remember that digital assets can carry a risk of loss like any investment, so it would be advisable only to buy and hold digital assets that you believe will perform the best. But we hope to have helped open up a new world of possibilities that could see you score a profit should you decide to go digital to make some extra money.

Please remember, that government institutions and crypto books alike warn that NFT and crypto investments are very high risk and therefore you shouldn’t invest more than you can afford to lose. Digital assets are highly speculative, and their price can change significantly because of the difficult task of placing an inherent value on a digital asset.