Growing money through investments is a tricky business. If there’s one takeaway we have from February 2020’s stock market crash, it’s that no asset class is completely risk free.
This is why anyone with financial acumen understands how important it is to diversify your portfolio to minimize losses. A diversified portfolio reduces your risks significantly, Since its very unlikely that multiple asset classes will all crash at the same time. That’s why a good investment basket consists of a balanced blend of different, according to your risk tolerance.
Thankfully, we live in a day & age where there are more asset choices than ever. And today, digital assets are taking the world by storm.
Digital assets, as the term suggests, are any assets that exist in a digital form and carry with it a right to use. It includes: Non-fungible tokens (NFTs), virtual real estate in the metaverse, your blogs, YouTube channels, and the likes. The ease of creation and maintenance is a digital asset’s trump card over physical assets.
Let’s dive deeper into all the reasons why virtual assets can change your financial game for the better!
Greater returns with minimal work
Investing in digital assets gives you an excellent stream of passive income, which can very well set you on the path to financial independence.
Digital assets like NFTs, stocks, online content and whatnot, yield great returns (with lesser effort), making them a highly attractive alternative to most other avenues of investment. A good digital investment portfolio can help you generate a desirable scale of return within a relatively short time frame.
There are a number of online ventures which require minimal to no effort from your side. Online advertising on your portal is one way. When you display an ad for someone else’s product or content on your website and a visitor clicks on that ad, the advertiser pays you for it. Often this entire process requires little to no effort on your part. Sometimes it may require you to put in more work, but also yield greater returns. The passive income you make depends on how much work you want to put in, offering you a greater say in managing your business.
The flexibility to earn on your own terms
Unlike an offline business, holding digital assets offers you the flexibility to manage your investments from anywhere in the world – as long as you have a good internet connection. Your location becomes irrelevant, because you can contact the owner of the asset whenever and wherever you want to, but also manage your portfolio at the click of a button.
Greater control over your investments
People investing in traditional asset classes face a higher risk, because they can never predict the future of their investment with certainty. This is the harsh truth that traditional investors find difficult to digest. A slew of factors such as market volatility, unemployment rates, debt ceilings and quarterly earnings can take away your control over your own investments.
Digital assets, however, give you complete control. As an investor, you can improve your asset to enhance its value and tremendously increase its ROI, or you can leave it alone if you’re not exactly fond of experimenting with something that’s working well, as it is.
The feeling of being in control, coupled with the flexibility of creating an awesome strategy for raising the asset’s value, and quicker returns makes digital assets such an attractive investment opportunity.
Of course, like all other investments, Digital assets come with their own set of risks – but those risks are much lesser in contrast to physical assets.
Lower overhead costs
Investment in digital assets translates into lower overhead costs for the investors unlike traditional assets. Why? Because in the case of digital assets, rent, wages and other fixed costs are practically non-existent.
If you plan to invest in online ventures, you don’t need to bear the capital costs for establishing retail spaces, or the leasing costs, or the costs associated with stocking, distribution or inventory management. This in turn widens your revenue margins, which results in more profits rolling into your bank account in lesser time.
Even if one needs to invest in specialized tools like SEO or SEM, they cost significantly lesser, and are much more convenient than the physical resources needed for handling offline businesses
To sum up…
If you’re a business owner, the kind of digital assets you own determine how your customers (and the rest of the virtual world) see and engage with you. It sets you apart from your competitors. How? Well, because it is a visual representation of your voice, image, brand, and the products or services you bring to the table. Your digital assets define how your customers can reach you, facilitating a transparent and easy interaction between you and your clientele.
If you’re an investor, the right digital assets can open up a whole new world of opportunities that yield splendid returns for you with little to no effort on your part.
Of course, like any other investment opportunity, virtual assets come with their own set of risks. But the perks significantly outweigh them. The right kind of asset, coupled with strategic moves can completely transform your financial situation for the better.