Technology has developed in such a way that you can now invest in digital assets such as online trading, online businesses, websites or cryptocurrencies. But how do they compare with their physical counterparts? Let’s find out!
The Digital Revolution
Technology is evolving at an exponential rate and it reaches and changes every industry. It has created a vast amount of possibilities in terms of investments that not many are still familiar with. Not all of these assets require technical knowledge and their potential returns can be quite astonishing as we’ve seen with Bitcoin and cryptocurrencies for instance. As always, the ones who are ahead of the curve make most of the profits so it’s crucial to investigate as you won’t hear about these type of assets a lot on mainstream media.
As your first choice, you could start trading online. As long as you have a computer and an Internet connection, you can get into any markets from anywhere in the world. Trading requires a lot of knowledge and skills but can be very profitable if you know what you’re doing. Day trading is time consuming though so it’s definitely not a passive investment. Trading does involve a significant part of risks so only invest what you can afford to lose.
Cryptocurrencies have been very popular the last 2 years and many savvy investors have made incredible profits. These assets are still very much at an early stage of their development but their potential in the future is immense especially if they get accepted as a form of payment online and offline. Scarcity is what makes Bitcoin and cryptos have such an edge against Gold for instance. Everybody knows at any given moment how many bitcoins are in circulation and that there will never be more than 21 millions coins. If Bitcoin’s use case rises and the supply reduces, price has to go up so it is therefore a great asset to have in any portfolio.
These days, you don’t need to open a storefront to start selling products, you can just create a website. As long as you know about online marketing and how to drive traffic to it, you can generate revenue just as a shop in the street does. Better, you don’t even need to have an inventory as you can use dropshipping as a business model. You can also buy an existing website or blog that’s already making money right now..
The Traditional Investments
If you take a look at the most traditional form on investments that are physical and that have been chosen by investors over a long period of time: Gold & Real Estate will definitely come on top of the list.
Gold has been a reliable store of value for thousands of years. It went through all the crashes of fiat currencies and remained a reference point. It’s almost as if it became the holy grail of long term investment. This confidence in the asset is still there today and from generation to generation, gold is viewed as the only real money that exists and an hedge againts fiat currency inflation.
Real Estate is also regarded as one of the best asset there is out there. It’s value usually rises at the rate of inflation and so do rental prices. Therefore, buying properties and renting them out brings you passive cash flow every month while the value of your assets grows at the same time. There have been very few Real Estate crashes in history making a safe investment as well.
The Bottom Line
There are many more digital & physical assets that we described here so take the time to research all of them. Digital assets have a lot of potential and the freedom to be able to run them from anywhere in the world is very appealing. Yes there are some risks associated with them but so is the case for Gold or Real Estate as many financial events showed us in the past. In the end, every form of investment contains a part of risk and it is your responsability to assess them and take the best decision in your situation. We believe that having a diversified portfolio is a great way to minimize risks so dedicating a portion of your net worth to digital and physical assets is definitely a good idea.