Many digital assets have a high volatility

Traditional valuation and analysis strategies cannot be applied to the majority of these assets because they are based on atypical and new fundamentals. Digital assets are therefore often very difficult for investors to assess. Making sustainable and profitable investment decisions is therefore associated with a very high risk without market knowledge.

The charts of Bitcoin show that the wrong timing of investment points can often lead to unpredictable price developments very quickly and at short notice. The buy and hold strategies often used and known by private investors should already contain simple basic principles like a averaged longterm portfolio construction.

Wide range of tokens

Bitcoin is the most valuable and well-known reference for blockchain based digital assets. However, Bitcoin is only one of thousands of these assets. Over the last 10 years, Bitcoin has been used in a wide variety of applications (Bitcoin has the task to transfer a digital value in a forgery-proof and decentralized way based on blockchain technology). Through this blockchain technology, various coins and tokens have been created with a wide range of applications.

  • Equity Token
    Are like shares offered Equity Token by a start-up, where individual investors receive shares, voting rights and co-ownership of the blockchain.

  • Security Token
    Also behave like a security. Investors participate in the token’s profit or turnover promise and thus often have repayment obligations. Whether a token is classified as a security token depends on whether the transactions are investment contracts.

  • Utility Token
    Serves projects to optimize internal scaling and administration expenses and to create a wide range of application areas. In most cases, these tokens can bring many logistical and financial benefits to investors. It is also currently being established that they represent the most successful type of token with performance.

  • DeFi
    Decentralized Finance stands for the combination of classical financial concepts and products, as they are known from banking, with blockchain technology. DeFi is about transferring well-known principles to the world of cryptocurrencies and distributed ledger technology.
    To that end, Decentralized Finance draws on instruments such as loans, currency exchange, interest, bonds, and more.

  • NFT
    Non-fungible tokens (NFT) are a unit of data stored on a digital ledger, called a blockchain, that certifies a digital asset to be unique and therefore not interchangeable. NFTs can be used to represent items such as photos, videos, audio, and other types of digital files. Access to any copy of the original file, however, is not restricted to the buyer of the NFT. While copies of these digital items are available for anyone to obtain, NFTs are tracked on blockchains to provide the owner with a proof of ownership that is separate from copyright.