For most of the newer crop of investors, cryptocurrency is becoming a very viable option frequently included in the usual stock and bond portfolios. In previous years, something that seemed to be of the future has emerged as a new investing trend with many players entering the cryptocurrency market.
Fidelity Digital Assets – Foraying into the Cryptocurrency Sphere
Fidelity Investments, one of the global leaders in asset management, stepped into the field in 2018 with the launch of Fidelity Digital Assets as a limited liability corporation created to serve the needs of the growing number of enthusiastic investors looking to broaden their portfolios.
With this new branch, Fidelity managed to integrate itself into the cryptocurrency game by garnering the attention of major investors due to its long-standing reputation as a major financial services firm.
Bitcoin – At the Forefront of Cryptocurrencies
Bitcoin has emerged as an immensely popular option for people looking to invest in cryptocurrencies. The currency was rolled out in 2009 and began gaining momentum in 2017 when it became mainstream with many endorsements that led to a surge in its popularity.
Bitcoin is the first and the largest of assets in the cryptocurrency arena and was originally supposed to be a mode of payment for all things that are available virtually. However, unlike the other currencies, neither are Bitcoins minted by the Central Bank or similar authorities nor regulated by these authorities. The coins, instead, are required to be “mined” by asking the investors to solve a complex mathematical problem. This entire procedure is guided by a network of computers that organize and legitimize the use of the currency.
Similarly, the supply of Bitcoins is regulated by a network of supercomputers that work in a decentralized fashion in a distributed ledger called Blockchain. These digital entities maintain a record of every Bitcoin transaction, making sure that the owners’ integrity and transactions are maintained.
What should you watch out for before investing in Bitcoin?
As a vastly new medium of currency that has skyrocketed in popularity and appeal, there are still several conscious decisions that a willing investor needs to make before taking the big step. As an investor, you should preferably take the following factors into account before investing in Bitcoins.
Take a moment to question your interest in investing in cryptocurrency.
Are you just eager to buy Bitcoins due to the current craze surrounding it, or are you genuinely looking to broaden your portfolio’s horizons? This is perhaps one of the most essential and fundamental questions you should ask yourself before investing in Bitcoins. Moreover, besides Bitcoins, various other financial instruments offer a lesser risk than the lucrative cryptocurrency medium.
Basically, as an investor, you should be able to justify your interest in Bitcoins and whether investing in them aligns with your future investment goals and options.
Understand what the industry is all about.
As you would do before undertaking your usual bread and butter investment, educate yourself and explore the Bitcoin market before plunging into it. It is highly advisable to understand what the market is all about, how the various aspects of it function and even find out what further options there are besides the famed currencies like Bitcoin, Ether, and Ripple.
It is also imperative to be aware of the blockchain technology that encompasses the regulation of cryptocurrencies. Therefore, by procuring a better knowledge and understanding of cryptocurrencies and blockchain technology, you should make an informed investment decision.
In 2011 when Bitcoins were just introduced, it was relatively easy to mine them at effectively zero costs, but now with the immense popularity and backing that has begun to receive, investing in Bitcoins can be a costly affair. Therefore, you should look at the variety of options available at your disposal and compare costs. For example, will it be more sensible to invest in something like a Futures Contract that allows you to make money off of the movement of cryptocurrency values, or will it be more cost-effective to get hold of a broker that charges a relatively lower commission? At the end of it, what is being said is that do not try to burn a hole in your pocket or sell major assets of yours to invest in cryptocurrencies.
What is the expanse of your Wallet? – Storage.
When we say wallet, we aren’t implying the embossed work of leather in your pocket. Instead, what is meant by wallet in this context is the place where you digitally store your purchased cryptocurrency.
For investors who collect small amounts of cryptocurrency, such as those received as “souvenirs” from commercial transactions, storing such amounts should be less of a headache as you can store it on your phone. A variety of apps are available that provide such services (make sure the app of your choice has a good rating and favorable reviews).
On the contrary, if you are an investor that has purchased large amounts of cryptocurrencies, it is strongly recommended that some space should be allocated on your hard drive for installing a wallet with a bigger purchase.
Fidelity – leading the investment demand for Cryptocurrencies
Based out of Boston in the United States, Fidelity Investments is the world’s leading and most diversified institution that caters to the financial service needs of a plethora of clients.
Fidelity Digital Assets is a part of the Fidelity Investments family that was envisioned to broaden the scope of the parent organization, a juggernaut in financial services. With the business booming in the traditional investment domains, Fidelity announced its foray into the cryptocurrency market with Fidelity Digital Assets that would manage and exercise the investments in cryptocurrencies for its clients. This was the first step made by a major Wall Street firm into the crypto market and thus, increased its reputation as an organization and helped the cryptocurrency market by marking a decisive change in the attitudes of investors towards digital assets.
The company boasts of its Digital Assets arm as a vision toward creating a fully functional platform of a strength comparable to any enterprise, which offers services such as storing, trading, and supporting eligible digital assets. Fidelity managed to use its stronghold as a major financial service giant to attract new investors and increased the acceptance of Bitcoin by formally recognizing it.
The very idea of launching a Digital Assets subsidiary became very apparent to the top officials at Fidelity sometime around 2010 when Bitcoin was just about to be introduced. The vision depicted was to help Fidelity survive in a market where “capital investments became completely frictionless”, as stated by the CEO of Fidelity, Ms. Abigail Johnson. Thus began exploring the cryptocurrency market and blockchain technology by Fidelity which developed over the years and was launched at the exact time when the cryptocurrency market received a boost from word-of-mouth promotions by many big investors.
Another proponent behind Fidelity’s move to establish a digital assets subsidiary was the market demand for newer advancements in the digital assets industry to integrate with their institutional reputation. While conducting its exploration of blockchain technology and cryptocurrencies, Fidelity also found out through surveys that around 70% of investors believed that digital currency and other assets were the future of capital investments as they expected the emergence of newer asset classes through the advancement of technology. With this kind of sentiment brewing among investors in the market, Fidelity found it necessary for an institutional-level firm to enter the market and provide the requisite services.
Fidelity Digital Assets pledged to its parent company’s pre-existing tradition of putting customers first and made sure that all investors had access to a dedicated team of specialists for clients and that the entirety of the clientele was assisted in navigating through these complex digital assets besides offering the generic services.
Services offered by Fidelity Digital Assets
The cryptocurrency market is volatile and prone to fluctuations like any other investment market, but another factor that gains utmost importance is storage. Unlike your traditional investments in stocks and bonds, digital assets such as Bitcoin are stored digitally; and storage of anything digitally carries a certain degree of risk.
- Fidelity is known for its reputation as a financial management firm known for its security while dealings in stocks, bonds, and other traditional assets. Fidelity Digital Assets has capitalized on this reputation and offers a secure, vaulted cold storage for digital assets that are, in turn, protected by multiple multileveled safeguards. The storage is offline and can be monitored easily by physical, cyber, and operational controls exercised by the team of experts at Fidelity Digital Assets.
- Since its inception over 70 years ago, Fidelity has been an industry leader in providing quality financial services to its clients. Fidelity Digital Assets aims to capitalize on that trust to ensure professional asset custody services to its clients that have been perfected and tested over the years, making the institution capable.
- Fidelity Digital Assets offers a dedicated service team to all its clients with the skills and abilities to guide investors through the web of cryptocurrency and display a long-term commitment for this ecosystem that is the digital assets market.
Why Fidelity Digital Assets?
Fidelity Digital Assets, a subsidiary of Fidelity Investments, aims to replicate the quality of services offered by its parent company in the digital market. Under the leadership of Tom Jessop, Fidelity Digital assets serve to provide institutional experience in the relatively new digital assets market.
Fidelity Digital Assets is driven by the strong core culture of innovation that incited the company to become one of the first to explore blockchain technologies and currency mining as early as 2014. In addition, many investors regard digital assets as a thing of the future and a separate asset class of its own, leading to the demand for an institutional giant to provide custody and trading services: a fulfilled demand by Fidelity Digital Assets.
Fidelity Digital Assets has forgone the one-dimensional approach and has instead adopted the resources of engineers, business, technology, and cybersecurity experts at the top of their fields to integrate a multidisciplinary approach into the digital assets market. This serves as a perfect concoction of individuals with the technical know-how backed by the institutional reputation that makes Fidelity Digital Assets a leading entity in the digital asset investment market.
To summarize, you should be able to buy cryptocurrency on Fidelity Digital Assets with ease: they offer the right variety of services that meet the demands of all investors – from hedge funds to individual investors or even family businesses. The specialization in the cryptocurrency market combined with the institutional set-up of Fidelity Investments makes Fidelity Digital Assets the justifiable service provider for anyone looking to enter the digital asset market. However, one should only enter the market at their peril since Bitcoin and other digital currencies are susceptible to fluctuations.
Investors looking to diversify their portfolios and are willing to take the necessary risk should look to enter the market. However, investors should be cautious of the costs they incur and the risks they undertake in investing in Bitcoin or digital currency of any sort.
While Bitcoin carries a degree of grandeur over its digital currency peers, one should also look for other viable options in the digital assets market. Furthermore, willing investors should also manage their portfolios in the digital market so that their costs are minimal and should make sure that they are offered a fair level of security for their investments.
The bottom line is that investors should take into account their reason for investing, the costs that they incur, the fluctuations that they should be made aware of, and the security that they should be rightfully provided in meeting their demand for a share in cryptocurrency – all of which is offered by Fidelity Digital Assets and its team with their curated services for clientele interested in the digital assets market.