With the crypto commodities investment market growing at a rapid rate, it seems that cryptocurrencies are indeed here to stay. A crypto commodity is an asset that exists in a digital or binary form, and whose value is determined by a physical asset such as gold or oil. Simply put, this is a new way of locking in the value of a real-world asset in digital form, where it can be divided into the smallest of units possible, called tokens. This tokenization allows anyone, and not just those with a lot of money, to invest in the the market.

Crypto/carbon is one of the highest trading crypto commodities, with companies around the world competing to reduce carbon emissions while others buy emission rights.  It is a big business that has promising rewards and hence a good investment option. Here are five good reasons why should consider investing in these commodities.

  1. Lower Costs of Investment

Very few people can invest in the traditional commodity markets. These markets are generally expensive as they require large trading volumes that need huge initial deposits and collaterals. They, in essence, shut out any would-be potential investors. Crypto commodities are changing how one can invest. Through tokenization, anyone with a small amount can now share in the commodity market, using Contracts for Difference (CFDs). You can buy digital contracts for as low as $ 10 and make a profit. This possibility has significantly reduced the risk of investing in this market, hence a good reason for investing.

  1. Secure Investment

Traditional stocks fluctuate in prices with emerging social, economic and political trends, not so crypto commodities. During market turbulence, most crypto commodities either retain or increase their value as they are not attached or connected to such dynamic trends. It is for this reason that most investors tie their wealth in these commodities to limit the excess of loss in cases of such turbulences. For instance, precious metals such as gold and silver have increased their value even during serious global conflicts like world wars. You can invest in such if you want to protect or grow your wealth over some time due to such cushions.

  1. Easy Investment Process

Investing in the traditional stock markets requires one to go through a rather complicated process. There are issues to do with documentation that most people do not understand or are not willing to go through. These bureaucracies prevent a lot of potential investors, especially the older and the younger generations from investing. Crypto commodities have changed and simplified investment processes. Buying tokens or digital currencies from a crypto exchange requires you to only register an account with your name and an email address. There is no requirement of producing personal documents with sensitive information, and the process is straightforward. You do not even need a broker to assist you to go through the investment process. With the investment process thus simplified, it is more the reason why you should also jump in and make the most of this market.

  1. Quick Payouts

There is nothing as good as getting your profits in real-time without having to sign a bunch of documents or having to wait for a while for your cash to clear. This is the beauty of investing in crypto commodities. Unlike the traditional stocks where you have to go through a channel before being able to sell and cashing in, selling and cashing in on crypto commodities is a straightforward process. You can monitor your assets in real-time, and buy or sell depending on your evaluation by a click of your mouse. If you need to liquidate your assets, you simply place a sell order and receive your money in a matter of hours rather than waiting for days. The good thing is that you do not have to rely on any third party to make these transactions for you, and you can also liquidate just a fraction of what you have. There is also no limitation as to how much tokens you can invest.

  1. Control Your Assets

Banks and brokerage firms controlled your assets in the traditional stock markets. If these institutions collapsed, they could have as well collapsed with your assets. You had no direct control of your assets. Crypto commodities markets have changed this, by giving you direct control of your assets. You can have your tokens saved in private keys, where only you can access it. You have absolute freedom to trade your commodities on any platform you deem appropriate at minimal fees. 

By Chakraborty

Dr Chakrabarty is the Chief Innovation Officer of IntuiComp TeraScience. Earlier she was Assistant Professor of Delhi University, a QS ranked university in India. Before that she has held research positions in IIT Mumbai, IIT Chennai and IISc Bangalore. She holds 2 patents and over 20 research publications in her name which are highly cited. Her area of research is in smart technologies, integrated devices and communications. She also has a penchant for blogging and is an editor of Business Fundas.