The state of the art of investing in the crypto world

In this post, I will give a high-level overview of the possibilities that open up around investing in crypto assets, crypto projects and other options.

For 2 years now, the crypto world has been accumulating the desired views of retail investors (small investments) and institutional investors (large portfolios and entities). In fact, the amount of capital moved in DeFi has increased from 2 Billion to 67 Billion (August) in 1 year.

In the previous image we see the evolution in 1 year.

That said, it is important to frame the evolution of investment around the crypto world, a growth to which other investment trends have been incorporated, especially in tokenization, through both utility tokens and security tokens.

This evolution in investment philosophy has transformed the way non-professional investors invest, moving from a simple holdeo to more complex strategies with characteristics typical of professional portfolios. The freedom and opportunity generated by the decentralized environment has undoubtedly been the breeding ground for this positive evolution for investors, who require them to study, understand and plan their assets and investment portfolio.

Some of the investment opportunities that are being presented are: (annual returns)

• Investment in Blue chips, such as Ethereum, Link, Solanda, Polkadot, and staking them. In other words, staking is a “locking” of assets, through their transfer, obtaining an extra return of between 5-20%.
• Investment through a pool, using two assets, so that you will receive the fees for the exchange movement between these assets, and you can even farm, obtaining extra returns between 15-40%.
• Investment in infrastructure, investing in technological equipment, electrical infrastructure and maintenance. For this type of investment, not only financial knowledge is needed but also technical knowledge. The returns can be between 40-50%, depending on the equipment and electrical consumption. The barrier to entry is high, since it requires investment in domestic mining equipment that is usually between 3,000 and 20,000 euros.
• Investment in other types of assets, such as NFTs, which is becoming the new financial wave. The returns here are very diverse, and the knowledge here must be not only crypto but also about digital art and its platforms.
• And finally, investments in tokenized assets, where the most common and well-known asset is real estate. The returns for this modality are usually between 10 and 20%.

In view of this approach, we must warn that investment should not only be classified by profitability, but by another series of factors, especially risk, knowledge and market volatility.

A possible summary of the five options above can be:

What is the best strategy? Well, the best strategy is always to diversify and reduce exposure to risk. With which you can diversify your portfolio, with percentages of each one or at least those that you have sufficient knowledge of.

Obviously, tokenization is the call to revolutionize investment, since it streamlines and makes it more flexible to enter profit opportunities, through the digital capitalization of economic rights. In addition, tokenization allows you to work on the capital gains obtained in other riskier strategies, from a lower risk perspective.

In the tokenization projects that exist today, such as Reental, we can say that volatility is minimal, given that you know perfectly well the return income you are going to obtain in advance. This allows for medium-term strategies, with a certain guarantee of compliance.

Undoubtedly, the disruption that tokenization is generating, and the improvement in the traditional model and in its profitability, will allow the crypto market to be increasingly fluid and with more daily users.

Bibliography:

https://defipulse.com

https://www.finanzas.com/divisas/es-rentable-minar-bitcoins_20114227_102.html

https://es.beincrypto.com/tokens-no-fungibles-nft-son-activos-ideales-como-inversion/