How Asset-Based Cryptocurrencies Are Successful In 2020?
June 05, 2020

How Asset-Based Cryptocurrencies Are Successful In 2020?

There is no doubt that the worth of crypto trading is increasing with every passing day. People are taking special courses to understand the crypto market. Though the cryptocurrencies are becoming extremely popular, they come with one major drawback, high volatility. The unpredictable volatility of the coins makes the investors rethink their investments. Thus, the development of next-generation cryptos was important. This gave way to something called asset-based cryptocurrency. 

The Asset-Based crypto is a new idea that most crypto lovers are yet to understand. This blog will be a complete guide to asset-based cryptocurrencies; what are these, their importance, and advantages. 

What Is Asset-Backed Cryptocurrency? 

Asset-based cryptos are coins that you can exchange for real and tangible assets like real estate, gold, paper money,  etc. These coins do not come with the risk of volatility like other crypto coins. Not just this, they have a link with a genuine value that you can exchange for money.

Just as the name recommends, these currencies connect to an item with financial value. As such, asset-based cryptocurrency help in digitizing an asset, and the record is put away on the blockchain. 

The asset-based coins are an evolution in exchange marketing. You can find these coins on different cryptocurrency exchange software. One of the best things about these coins is that they have a connection with physical resources. This feature helps in reducing the price swings in comparison to the no asset-based coins. As most of these coins are in connection to an external market where trading of assets like diamonds,  gold, and silver is done. The value of the coins associated with the real asset may fall below the value. At that point, traders will profit by the irregularity and cash out the physical asset. Hence, the asset-based crypto coins are giving the digital market a new turn. 

Importance Of Asset-Based Cryptocurrency:

Cryptocurrencies have a wide range of scope in both the digital world and now in the real world as well. There are surely a ton of benefits to adopting asset-based cryptos. 

The first importance of the asset-based crypto is that it addresses the problem of the high volatility of cryptos. Volatility in the market makes the use of digital money difficult to rationalize. Also, daily price swings make cryptocurrencies unwise. 

The second importance of the asset-based cryptocurrencies is that they anchor the value of the crypto coins. Hence, it is safe to tie their value to a real-world resource rather than with something that has no fiat value. 

Furthermore, digital currencies backed by real assets receive their full value on the day of the ICO. As mentioned above,  these currencies are tangible assets- backed.  Therefore,  the risk of uncertainty whether the future platform will work or not diminishes. 

Imagine owning some gold, it will have a fixed rate. Also, there won’t be many chances of benefit if you keep it inside your locker. So if you get an asset-based coin, you will have exceptionally fluid advanced cash in hand. Crypto exchange software which supports tokenization will help you redeem the gold for tokens easily. Also, get it back at higher STO exchange prices. 

Benefits Of Asset-Backed Cryptocurrency:

The innovation of less volatile class of cryptocurrencies has given way for the development of asset-based cryptocurrencies. These currencies have changed the way the crypto market runs. It has evolved the crypto business. Undoubtedly, the asset-based coins come with a lot of benefits for the investors. In fact, most of the developer is including them in their dapp development

Some of the top benefits of Asset- Based coins are: 

Attracts More Users To The Crypto Market: 

Where there are millions of people shifting to crypto business and making a good profit there are some people who still doubt the market's worth. In fact, as the whole process runs online some people even consider the crypto market a scam.

There is no doubt that cryptocurrencies are both invisible and intangible. In fact, the coins have no link with any real-world asset. Because of these reasons, people consider market fake. Therefore, asset-based cryptocurrencies are a solution to this common digital market problem. 

The crypto coins hold the value of real-world assets like property, gold, silver, minerals, etc. So innovation of these coins helps in clearing all the confusion in the mind of new investors. Definitely, people only rely on things that hold some connection with reality like asset-based coins. As a result, more people start investing in the digital marketplace.

Give Stability: 

As a matter of fact, the cryptocurrencies are exceptionally unstable. One of the top disadvantages of the crypto market is that they are highly volatile. The value of the crypto coins keeps swinging every now and then.

The asset-based cryptocurrencies help in bringing stability to the crypto market. Hence, the crypto investors invest in these coins without any risk of vulnerable market changes. 

Along with this, the crypto investors can even exchange the asset-based cryptos for different crypto coins without pulling their cash from the crypto market. 

So if you want to make a risk-free crypto investment then you must invest in asset-based crypto coins. 

Get More With Little Crypto Investment:

Everyone wishes to get big things with less investment. People investing in business look for ways to earn more by making less or no investment. 

For instance, you want to buy a property that is worth $1 Million and you have $1000. Asset-based cryptocurrency will help you in getting it even then. The coins let you make an investment of $1000 in property worth $1 million. For that, you can simply buy a token worth 0.0001 shares. A property that was almost impossible for you to purchase can now be done with these new cryptocurrencies. 

Exchange Any Asset For Crypto Coins:

The evolution of these coins is not only beneficial for property owners but everyone. Anyone who has an asset that has a good value associated with it can avail of the benefits of asset-based crypto coins. You can simply tokenize assets like property, venture capital, product merchandise, equities, commodities, etc. 

If you want to increase the rate of your assets and want to stay away from risks then go for asset-based cryptos. 

Best Asset-Backed Cryptocurrency To Invest In:

Thinking of asset-based cryptocurrency removes the entire debate of “But what is it backed by”. Really they are assets all by themselves. These have continuous utility in the field of the crypto marketplace. 

Some of the best assets backed cryptocurrencies in the market are: 

1. Digix Gold Tokens (DGX)

Digix Gold Token is an asset-based token by physical gold. It is an Ethereum-based ERC-20 token. DGX was one of the first cryptocurrency projects that actually made asset-based exchange possible.  

In this, one Digix Gold Token equals to approximately 1 gram of standard gold. 

There are many benefits of purchasing a Digix Gold Token than buying physical gold. These tokens offer fast and easy transferability and hence are more liquid. Besides, you can exchange DGX all day, every day, and 365 days on cryptocurrency exchange software. Not just this, you can track your gold on the blockchain. 

2. ATLANT Real Estate Tokens (ATL)

Buying and selling property is something that won’t ever stop rather will keep increasing. Now, you can simply involve the real-estate in the cryptocurrencies and crypto marketplace. 

ATLANT is a currency that associates real estate with the crypto business. It helps you to buy and sell property using multiple digital currencies. The blockchain-based platform allows people to buy unique cryptocurrencies tokens that represent partial ownership of certain real estate assets. 

Getting cryptocurrencies real estate ownership gives several benefits. People who want to get property and have less investment can invest small sums of money into valuable properties. Additionally, investors will get a long list of properties from all over the world on the ATLANT platform. 

One can divide every new property on the site into tokens. One token = 1 mm2 of the total property. After this, the coins and tokens will be made available in a property token offering (PTO).

3. Petro (₽)

The asset-based cryptocurrency does not limit itself to assets like gold and property. Surprisingly, the cryptocurrencies also help in the exchange of physical reserves like oil. 

Venezuelan President was the first to tell about Petro tokens. In this, every single token of Petro is equal to a barrel of oil. 

Petro was the first government-backed oil token. If it worked, it could pave the way for more government-issued cryptocurrencies.

4. CEDEX Diamond Tokens (CEDEX)

Diamond has lost its value in the past years due to lack of transparency, lack of standardization, lack of liquidity, etc. People no more wish to invest in diamonds as they did earlier. 

In such a situation, CEDEX is the best choice. People can tokenize their diamonds on the diamond to crypto exchange software. These tokens and platform solve the major problems with a machine-learning algorithm called the DEX. This helps in boosting pricing accuracy rate greater than 99.5%. Also, the tokens are consistent and liquid. 

Conclusion: 

Until this point in time, cryptocurrencies have had basically zero effect on real-world resources. Nonetheless, considering how illiquid many assets are, tokenization is a promising pattern for both the digital market and other markets. Also, these coins have a wide scope of potential for expanding investments in the mere future.