When the term “digital asset” was coined in the mid-90s, it referred to items like images, videos, audio, and documentation. Since then the blockchain has breathed new life into the term. A whole class of digital asset in the blockchain is developing, and it’s potentially the most significant investment opportunity since the World Wide Web.
Understanding this emerging class of digital assets is crucial for the creation of smarter investment strategies, development of new businesses, and diversification of traditional portfolios. In other words, if you’d like to invest and grow your wealth off the blockchain, you need to understand each type of digital assets available today.
5 Types of Blockchain Digital Assets
Digital assets represent a trillion-dollar investment opportunity for one reason. The lightning-fast digital economy requires brand-new way of creating wealth and doing business.
Whether you’re talking about crypto commodities, cryptocurrencies, security tokens utilities, or real-world asset tokens, the digital asset blockchain provides ways to overhaul and redesign the global economy, boosting efficiency and paving the way to unprecedented new opportunities.
Below are the five main types of digital assets that currently exist on the blockchain:
A form of digital currency that uses a cryptographic foundation to store value, provide a means of exchange, and function as a unit of account. There are now many cryptocurrencies you can buy and invest in, first and foremost of which is Bitcoin.
- Crypto commodities
Allow for the creation of new, independent digital assets by using fundamental cryptographic principles within a platform. It works like this— let’s say gold is the commodity (crypto commodities), which can be used to create gold necklaces, bracelets, and rings. All of the gold products now have new values, in the same way that crypto commodities like Ethereum can create new digital assets with new values, such as cryptocurrency.
- Utility tokens
Utility tokens are like digital coupons. Blockchain technology providers give them to investors who can then use the tokens for current or future access to the company’s products and services.
- Security tokens
Security tokens get their value from tradable assets and other external sources that already have value, like a car, house, stocks, painting, or company shares. Because of their nature, security tokens are covered by federal securities regulations.
- Hybrid tokens
These do not hold the conventional values of security tokens. However, hybrid tokens can be valued for both investment purposes and practical uses on a platform. They are beneficial for two different types of token holders: investors who hold for speculative value, and participants who want to gain the right to a specific product or service.
Create a Digital Asset Investment Strategy with Key Coin Assets
Each of these digital assets offer tremendous potential for wealth generation. However, it takes a lot of experience and deep knowledge of the blockchain to create a strong investment strategy. With more than 30+ blockchain investments ourselves, Key Coin Assets can help you harness the digital marketing blockchain and learn more about this emerging technology. Contact us now and start investing in yourself!