The future is digital, and digital assets are a popular asset class for investors who want to capitalize on the trend. Although digital assets can be volatile, they also provide a chance to get in early on technology that will likely be used more and more. In this guide, we'll cover what digital assets are and how to start investing in them.
How to manage digital assets
Decentralized digital assets are managed using wallets. These wallets provide private keys to assets stored on the blockchain, so if you have cryptocurrency funds or an NFT, you use your wallet to access them.
With cryptocurrencies, there's a bit more flexibility regarding how you manage them. Most crypto apps and exchanges let you keep cryptocurrency on the platform after buying it, so you don't need to move it to a wallet. However, many crypto enthusiasts recommend transferring your funds to your own blockchain wallet to ensure that you're in full control of your cryptocurrency.
NFTs, on the other hand, need to be stored in NFT wallets. When you buy or mint an NFT on an NFT marketplace, it's stored in the wallet you provide.
Although this all might seem complicated, many of the best NFT wallets are also blockchain wallets that can store cryptocurrency. So, although you can have separate wallets if you want, you can also store any crypto and NFTs you buy in the same place.
Digital assets are exciting, and, during bull markets, investors have poured money into them. As previously mentioned, these are very high-risk investments, so it's best to take a cautious approach. Consider making digital assets a small part of your portfolio, but don't bet the farm on them.
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