How to make a secure investment in Crypto

A secure investment is on all people’s minds across the globe. Investing money in hope of making more money is an old concern that all people throughout history have been considering. In today’s world the traditional methods of investment are still applicable, however new approaches have come into the market and raised the investors’ attention. The most recent investment option in our digital world that attracted many investors is the investment opportunities in block chain or crypto currencies.

Let’s dive deep and have a look at a few most popular types of investment this new technology has brought to us.

What types of investment can we make in Crypto?

1- Cryptocurrencies

Either buying and holding or day trading cryptocurrencies associated with huge risks as the market is quite volatile. On top of that, other than a few cryptocurrencies like Bitcoin, Ethereum and a few more, the majority of the currencies in the market are considered to be scam. As such, holding and trading cryptocurrencies is not a good option for risk averse investors. Even if you are a risk taker investor, never invest more than 10% of your fund in cryptocurrencies.

2- Non-Fungible Tokens

It’s been a few years since we have heard about Non-Fungible Tokens or NFT. The NFT concept refers to tokenizing a digital or a real-world asset and trading it. A digital art work, a document, a digital photo can all be tokenized and the authenticity, ownership and all other information will be securely stored in the blockchain network. Besides, almost all real world assets like an actual artwork, a piece of diamond, a barrel of oil, etc. can be tokenized. These are tokenized tangible assets that are backed by an asset that physically exists in the real world.

3- Fractionalized real estate tokens

Investing in real estate and buying properties have always been considered as a secure investment all around the world. However, high price and liquidity risk has taken low budget investors out of the market. The blockchain technology has brought in a new great opportunity by introducing tokenized real estate investment. Property NFT is considered as one of the most secure investment opportunities across the crypto and blockchain industry. The underlying asset of the NFT is backed by a real world asset which is a property and the owner of the token is entitled for capital growth and a passive income form the investment by renting the property out. We will go through it in detail shortly.

Finally, what is the most secure investment option in Crypto?

It goes without saying that buying a token that is backed by a real world asset, is the most secure way of investment in the crypto market. Likewise, how would that be if the underlying asset is a luxurious villa in Palm Jumeirah, or a penthouse in Dubai Marina? That would be one of the best and most secure investment opportunities that you can make. Such a token is not only backed by a valuable actual property, but also makes you the proud fractional owner of such a property. Once you purchase a tokenized real estate, a fraction of the underlying asset becomes under your ownership and it will be secured in the blockchain network. Your ownership can not be changed or replicated so it is quite secure. On top of that, the real estate token will rise in price, once the property price goes up. More importantly, you will enjoy a rental income of that property on a pro rata basis. How good is that?! 

Final words to consider with care

Even though tokenized real estate is the best investment opportunity within the crypto market, you still need to be very careful. Firstly, be aware of the lack of governmental regulation and legislation for crypto and NFT investment, so if no legal protection is in place, your investment will be at risk. Such a market sounds like a perfect place for cyber criminals to launch fake projects, sell their tokens and go away.

As such, before making any investment in the crypto market, including tokenized real estate investment, do a comprehensive research to see if there are adequate levels of protection for you by governmental regulation and more importantly, check if the actual project has all confirmations and allowances from the local government.