Financial instruments for crypto projects
Digital financial instruments include various types of digital assets, such as cryptocurrencies, tokens, tokenized assets, digital currencies of central banks. These assets can be used for investment and financing. Cryptocurrencies are the most popular.
Financial instruments for crypto projects: advantages and disadvantages of cryptocurrency
Digital money in the form of cryptocurrency is a fairly new financial instrument for crypto projects, which is gradually covering the world markets. This variety does not have a centralized control system, is protected from fakes, which favorably affects its development. The advantages of cryptocurrency include the following points:
- decentralized nature of the issue (the ability to mine for everyone);
- determination of value under the influence of supply and demand;
- no need to provide personal data for transactions;
- resistance to inflation, low commissions or none at all.
The disadvantages of this financial instrument are the need to purchase expensive powerful computing equipment for mining, significant cost fluctuations, and the impossibility of canceling transactions. Pricing is formed under the influence of demand, which is determined by the attractiveness of the asset. To date, the leading place among cryptocurrencies is occupied by BitCoin.
Financial Instruments for Cryptocurrency Projects: Promising Hybrid Tokens
Another popular type of financial instruments for crypto projects are tokens: utility, security and hybrid. The latter model could include a programmable transition between a debt token and an equity token. For example, a company issues a hybrid token that behaves like debt for a set amount of time. At the end of a certain period, it is reissued as a share token. Hybrid security tokens can be converted into shares of the company over time, expressing the conversion between securities on the network and off the network.
Financial instruments for crypto projects: tokenized assets for investment
The cost of such a financial instrument for cryptocurrency projects directly depends on the price of the underlying asset that underlies it. You can tokenize shares of world companies, precious metals, oil. When the value of the underlying asset grows, the price of its token similarly increases, and the same happens with a decrease in value. For tokenized assets, there is an adjustment for dividends, as a result, you can get a similar financial result with investments in real assets.
Financial Instruments for Cryptocurrency Projects: Main Investment Options
Popular investment options include:
- Classic buy&hold. For starters, you can buy a few key assets in small quantities and leave them alone for a while. You can also add projects from a well-known industry that you can adequately evaluate. Investing in ICOs for beginners is a surefire way to lose money.
- Derivatives for the top cryptocurrency. Buying and holding positions is not enough to make a profit. You also need to have risk hedging tools that will make you feel more confident in this game. Traders will also come to the aid of various options, swap contracts.
- Opportunistic investments. Semi-insider trading helps to get a good profit. To get into the right positions and get super profits, you need to spend a lot of time studying social networks, communicating with teams, tracking projects. Making the right decisions will require a strong team of technical experts.
- Arbitration. You can make money on money that is idle. With minimal risks, you can earn from 5 to 20% per month in cryptocurrency with the help of arbitrage robots. You can use ready-made solutions on the market, or contact qualified programmers. This option can be a good starting point.
You can also invest in projects in which real business comes into contact with blockchain technologies. The professional team of Blocons will help you choose the best investment option on an individual basis, provide competent advice, and comprehensive support for cryptocurrency projects. Positive results and good emotions in cooperation with us are guaranteed. Do you have any questions? Be sure to contact our specialists.