How to Enhance Your Asset Management Using Crypto

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Managers around a desk tracking their asset management

Asset management and investment has always been an esoteric landscape, largely enjoyed by those who understand how to trade in it and have the resources to do so. However, since the birth of Bitcoin and the cryptocurrency industry that came with it, the ability to invest in assets has been largely democratized. 

With more and more people now investing in some form of cryptocurrency or another, these digital assets have been steadily growing as a separate asset class for everyone from novice traders to institutional investors to add to their portfolio.

The reason is that they present unique opportunities not found in conventional asset classes as they offer the opportunity to combine features of high liquidity, accessibility, and high returns. These perks are there for savvy investors to benefit from regardless of crypto’s volatility. With these considerations in mind, here’s a look at how crypto investments can help traders enhance and grow their portfolios.

Understanding The Significance of Presales

For crypto investors who already know how to spot the early signs of a winner, getting in early is paramount. Cryptocurrency presales are vital to this process as they offer such investors early access to new tokens before they are available on public exchanges. This phase can be highly beneficial to asset managers as it allows them to gain access to a particular token from the beginning.

a Bitcoin demonstrating asset management

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As more novice traders become wise to this, many are now actively looking to discover the best cryptocurrency presales to move on. According to crypto writer Kane Pepi, those who get in early can capitalize by accessing a lower entry price than buying it on an exchange. 

It also gives them an opportunity to simultaneously buy into and invest in a new token’s underlying blockchain. By staking their crypto assets, they can further enhance their holdings by being rewarded with more when the relevant token begins taking off. 

In short, taking part in crypto presales allows investors to get in on the ground floor of innovative projects. In cases where the token and its blockchain really lead to long-term success, when these projects mature and enter broader markets, presale investors stand to make significant gains. However, it is crucial to conduct thorough research and risk assessment which is where professional review sites can be very helpful. 

Decentralization and Access to Global Markets

One of the core reasons cryptocurrencies can be so attractive is because of their decentralized natures. This trait means they operate outside of a central authority and traditional regulatory regimes. This gives them instant access to global markets without the need for any intermediaries that can make their transfer more tedious and expensive to execute.  

Time and geographical constraints also have no bearing on them as they are accessible 24/7, unlike stock markets. Their other traits like immutability and transparency make them more secure, providing investors with better protections against things like fraud. All these together make crypto investments more attractive to international investors. 

Portfolio Diversification Through Cryptocurrencies

Long before cryptocurrencies were ever introduced to the world, diversification was already a cornerstone of asset management. Diversifying isn’t just smart by the fact that it provides more ways to earn higher returns but is actually a cautionary tool for stable asset management as it spreads the risk and therefore mitigates the chance of heavy losses. The only difference now is that cryptocurrencies generally make up a sound part of that diversification. 

Cryptocurrencies generally possess characteristics not found in traditional stocks and assets. This is what sets them apart. However, this also means they generally don’t correlate with traditional markets, meaning they can be used as a way to hedge against dramatic movements during times of greater instability. 

By including them in your asset management portfolio, they can reduce risk and offer a wider form of diversification than has ever been available before. Their high volatility does make them a risk. However, for those who understand crypto markets and blockchain technology well enough, that same volatility can also provide the potential for substantial returns. 

Since Bitcoin’s success, cryptocurrencies have also grown enormously with over 20,000 of them in existence now and new ones being created every day. Different types like stablecoins, NFTs, and utility tokens provide a spectrum of choices for asset managers to further diversify holdings.    

Enhancing Security with Cryptographic Technologies

Cryptographic technologies inherent in cryptocurrencies also ensure advanced security. As they utilize blockchain technology, cryptocurrencies record their transactions across a distributed digital ledger. The fact that transactions cannot be altered without the consensus of the entire network once recorded means they are virtually immutable. 

This technology ensures that once a transaction is recorded on the blockchain, it mitigates the risk of fraud and unauthorized manipulation. Blockchain technology also uses cryptographic keys for transaction authentication, providing an additional layer of security in the process. This feature means only the holder of the private key can initiate transactions, helping to protect against unauthorized access and theft. 

By catering to the use of smart contracts, these can be leveraged to automate the terms of the agreements relating to the investment. This takes away the need for an intermediary and provides certainty over the execution of the contract. 

Technological Integration and Operational Efficiency

Integrating blockchain technology into asset management provides better security but also streamlines efficiency. As this technology has grown and evolved through continuous refinements and expansion of its capabilities, it has consistently lowered operational costs, become faster, and minimized the need for human intervention. By cutting out bureaucratic red tape, it’s also more accessible, and can cater to cross-border transactions more easily, faster, and cheaper. Its ability also enables the tokenization of assets which can convert rights into a digital asset recorded on the blockchain, offering a wider range of investment options in the process.

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