What Is Digital Investing?

Digital Investing Definition

Digital investing is the process of using digital technologies to invest in digital assets.

The adoption and evolution of digital technologies worldwide, known as the digital economy, consists of numerous types of digital assets that are changing how people and the world economy operate.

Is Digital Investing For You?

Digital investing provides investors with investment opportunities—such as cryptocurrencies, blockchain tokens, staking, validator nodes, and decentralized finance (DeFi)—that aren’t offered by traditional finance (TradFi). Furthermore, digital investing typically has better services—such as lower fees, higher yields, and higher potential for appreciation—than TradFi investments.

What Is a Digital Asset?

A digital asset is anything with value that can be bought, sold and stored digitally. The term “digital asset” is most commonly used in reference to blockchain-related technologies and assets like cryptocurrencies, tokens, staking, perpetual contracts, and NFTs (non-fungible tokens), but digital music, videos, contracts, websites, apps, data, and the like are also digital assets.

Some assets, like stocks, have essentially evolved into digital assets. For instance, stocks are bought and sold via websites and apps nowadays and rarely ever do people actually possess stock certificates. Some fiat money, like the US Dollar, is also becoming a digital asset as a majority of people worldwide have switched from using cash to services like PayPal and Venmo or debit and credit cards.

Digital Assets Examples

– Cryptocurrencies (Bitcoin, Dogecoin, Litecoin, etc.)
– Tokens (governance, NFT, security, synthetic, utility, etc.)
– Perpetual contracts (derivatives trading)
– Staking (blockchain dividends)
– Smart contracts (programs on blockchains that run when predetermined conditions are met)
– Apps & websites (banking, trading, streaming, e-commerce, etc)

Digital Investing Examples

– Investing in cryptocurrencies, tokens and NFTs via a crypto exchange website or app
– Investing in high-yield savings accounts via a digital bank website or app
– Investing in stocks via a website or app
– Investing in crypto funds via a website or app
– Becoming a lender via a decentralized finance (DeFi) website or app
– Staking crypto via a blockchain website or app
– Operating a validator node via a blockchain website or app

How to Buy Digital Investments

We use crypto exchanges such as Kraken, Binance, and Gemini to purchase and trade cryptocurrencies and blockchain tokens. We also use the web3 wallet MetaMask, which is an app that allows investors to purchase, sell and store digital assets. Web3 wallets are necessary to connect to decentralized exchanges (DEXes) and to invest in DeFi.

Digital asset funds like Kingsly Digital Asset Fund are ideal if you prefer leaving the digital investing to a professional so that you can spend your time elsewhere (like drinking margaritas on a beach).

Getting Started with Digital Investing

Retire Early with Digital Investing (REDI)
How to Start Digital Investing
What Are Digital Assets?
List of Popular Digital Assets

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