Learn this simple tips how to become a good Digital Asset Investor.
What is Digital Asset?
It is a broad term which can be used to identify something in digital format. Usually a binary code representation of anything. To test if a thing is a digital asset, just ask your self if that thing can be seen on a digital screen and can be stored, transferred, or downloaded on a hard drive, then it’s an asset.
Now a days, this phrase is becoming a common term in the cryptocurrency world.
What is Digital Property/Asset Investing?
It is a disciplined act to preserve a digital asset for future use. It does not necessarily imply monetary valuation of a thing but a perceive value of a thing instead. Practicing a good management system is major part of investing.
How to Protect Digital Property
- Learn to develop a good and effective management system.
- Use a reliable management tools or software to monitor changes in assets if possible.
- Hire a personal digital asset manager if you can’t effectively maintain your assets in custody. As much as possible, that person or specialist must be residing near your place and not overseas.
- Don’t easily trust an expert or a company to hold your assets. Initiate first contact to that specialist, not the other way around. That person might be a fraud. Do your own research before trusting anyone.
- Manually store your data in a safe place and do regular backup of files. Likewise, perform hands-on accounting and report analysis of basic stuffs.
Do I need Insurance to Protect my Data?
Availing the services of insurance agent is not necessary. Just regularly backup your data and you are fine.
Strategies That I Use
- Doing Asset Management 101. I sorted out and cleaned up unnecessary files that clutter my storage medium. Also, I Identified possible risk and mitigating measures to minimize loss of my holdings.
- I implemented asset diversification. I stored my valuable data information in 2 or more different locations.
- I prioritized security and privacy protocols over public platform and unsecured protocols.
- I planned a system on how my assets will be transferred to other person, whom I trust, in case of my sudden death.
- I identified my long term holdings from my short term holdings for organized exchange of assets under my custody.
Note: You need to incorporate to your strategy at least 3 from those mentioned above to become a good Digital Asset Investor.
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