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Digital Assets Worth Investing in Other Than Cryptos

investing in digital assets other than crypto

June 17, 2021 | 

JOHN K MWANIKI |  0 Comments| 

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While there are digital assets other than cryptos, most people are only familiar with cryptocurrencies. The value of the crypto market keeps rising by the day. The value of the cryptocurrency market is projected to reach $5,190.62 million by 2026.

More cryptocurrencies are being established, and more people are getting crypto wallets. Digital assets are special and are changing the future of investment. While cryptocurrencies are the most popular of them, you have several options.

Digital assets other than cryptos

Blockchain has been an interesting phenomenon as much as many people don’t understand it. It is unique as it allows cryptos and digital assets other than cryptos to operate without centralization. 

Thus, risks usually seen in the markets are reduced, and the transaction costs of the digital assets become low. Digital assets are trillion-dollar investments because they align with the fast-changing and modern business environment that calls for modern ways of generating wealth.

Contrary to what most people think, there are digital assets other than cryptos. They are about five cryptocurrencies included. We have interacted with cryptos more, even if not directly and only in the form of information. Just like fiat currency, cryptos store value. With that, they are used as a form of exchange. There are now about 5000 cryptocurrencies that you can invest in. 

Other than cryptos, the other digital assets include hybrid tokens, security tokens, utility tokens, and crypto commodities.

1. Hybrid tokens

These digital assets borrow some elements of cryptos. They have characteristics of utility and security tokens. For instance, utility tokens have a limited supply. Hybrid tokens have that too. Thus they can be used as a form of exchange within a given network. 

Holders of hybrid tokens lack early utility. However, the tokens appreciate as the network expands and holders enjoy financial gains. Hybrid token holders also have certain economic rights. A good example is equity and profit rights in the business of the issuer of the token. In other cases, the holder can get rights to additional revenue streams in the said network. 

Hybrid token holders have equity rights such as voting, equity ownership, and dividends. Would hybrid tokens make an excellent digital investment other than cryptos? Yes, it is a worthy investment. Note that the investors have revenue and dividends rights which makes it a viable long-term investment. 

The volatility of this token is also low, hence low-risk. It is an ideal option for two types of investors. The ones that want rights to specific services and products in a network and the ones that hold speculative value.

2. Security tokens

Security tokens are interesting technology in the blockchain. They are essentially liquid contracts for given percentages of assets that already have value. A good example is corporate stock and real estate. When you invest in security tokens, your stake is stored on a blockchain ledger. 

Why should you invest in security tokens? They are trustworthy, which is why people are rallying around this asset. Due to their nature, they are regulated. Security tokens are also easily transferable, and not only that. You can transfer them at a cheaper rate than what investors experience with other brokers in the market. 

The trading time for the security tokens is 24/7. Basically, with security tokens, you reduce the cost of transactions without affecting the returns. If you have experience with the stock market, you can attest to the fact that settlement usually takes two days with some brokers.

The benefit that you will get from investing in security tokens is speedy transactions.

3. Utility tokens

Utility tokens are issued to fund the development of cryptocurrencies. Investors buy this digital asset to use it later in the future. They hold value and are found within a blockchain. Utility tokens are valuable digital assets other than cryptos. This is because they have different uses. Tokens have distinct features and purposes, which makes them useful for different roles.

They can be used as currency to make payments inside and outside the blockchain. Earnings can also be shared using utility tokens. They are also used to bestow ownership and voting rights, exchange value, and tolling.

Why should you invest in utility tokens? Their flexibility in use is one of the reasons. They serve many powerful roles, and they allow seamless transactions over a blockchain. Companies can use them to fund the development of their projects. You can also pay for decentralized services using utility tokens. 

Utility tokens have value and have more functionality than cryptocurrencies.

4. Crypto commodities

These are fungible or tradeable assets that represent a contract, utility, or commodity. The volume of crypto commodities being traded is increasing rapidly. Crypto commodities are in binary format and are tied to traditional assets. 

Crypto commodities are recommended for investment due to their many benefits. They allow inclusivity by eliminating investment barriers, easily qualifying individuals as investors. The onboarding is straightforward.

Crypto commodities fall under the category of safe-haven investments. This means they increase and retain their value even during market turbulence. It can be a good insurance policy for your investment.

One thing about traditional commodities is they are expensive and inaccessible too. This is because brokerage firms and banks need high trading volumes, collaterals, and deposits. Crypto commodities are accessible to even small investors. 

With crypto commodities, you are allowed to hold your assets. Unlike centralized systems like banks that have custody of your assets, you can withdraw your assets and investments to a private key. 

Investing in digital assets other than cryptos

When it comes to decentralized investments, you have options other than cryptos. There are hybrid tokens, security tokens, utility tokens, and crypto commodities. If you take the time to understand how they work, you will realize they have more roles and uses than cryptocurrencies.

If you are considering investing in any of the highlighted options, research and assess the pros against the cons. The benefits are many, and they are an excellent opportunity for you to get into modern investment.

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