Marine Asset Backed Digital Tokens — A New Investment Class For Millennials

Saving for the future is essential; the earlier you begin, the better. As for a fact, millennials have the upper hand when it comes to investing, like higher risk appetite, fewer liabilities, and the zeal to explore. The crypto space is the most up-and-coming investment option for millennials in the new era of web3. However, the fair newness of the market has invited its share of apprehensions in terms of safety.

Therefore, we have compiled a list of the safest investment options for Millennials to help you make more informed decisions.

Before we look at the various investment opportunities, let’s address the elephant in the room first -

What are millennials investing in?

As much as we would traditionally like to say Mutual Funds and ETFs, the millennial investing behaviour has drifted from traditionally assumed safe sources to sources that can amplify investment faster while still promising a sense of security.

This thirst led to a trend of exploring newer and emerging investment opportunities like Cryptocurrencies and NFTs. Apart from being fascinated by this new financial technology, investment in this new-age tech is enabling millennials to achieve financial freedom sooner rather than later. This brings us to our first investment opportunity, which is safe and is about to transform the way digital assets are traded.

Real-World Asset-Backed Digital Tokens

Tokenizing a digital asset is the process of representing ownership of that asset as a digital token on a Blockchain. The asset could be anything from a piece of digital art, a software application, or a physical marine vessel like Ships.

The key advantage of an asset-backed digital token is that it can be transferred and sold on a centralized or decentralized exchange without the need for a centralised third party. This allows for a much more efficient market for buying and selling digital assets.

Asset-backed tokens represent ownership of a real-world digital asset; a company can raise funds to help finance the development of that asset. Real-world digital asset-backed tokens also have the potential to create new markets for digital assets. For example, a digital asset-backed token could be used to represent ownership of a ship. This could create a whole new market for trading and selling assets that were not that easy to liquidate before.

Therefore, the tokenization of assets to empower digitalization has opened a plethora of opportunities. They offer several advantages over traditional investments and have the potential to shift the paradigm of investment.

Now that we have set the context for the millennials to invest in, let’s throw some light on a new investment class for fractional ownership; Maritime assets or, in simple words, Ships!

The maritime industry is important for many reasons. First, it is responsible for the transport of a large percentage of the world’s goods, including food, fuel, and other commodities. Second, the maritime industry plays a critical role in global trade, providing essential links between countries and regions. Finally, the maritime sector is a significant source of employment, with millions of people working in the sector around the world.

The main consideration here is that the shipping industry has the biggest potential for being the preferred investment class. The only and biggest barrier to achieving this is accessibility.

The industry offers everything that a millennial craves today. It is recession-resistant, secure, and reliable, which makes it a good choice for millennial investors.

Therefore, there is a dire need for digitalization to ensure that investing in the maritime industry is easier for the millennials.

The best-suited example of a platform providing such opportunities is ShipFinex. A project that offers investors the opportunity to invest in the maritime industry by fractionalizing the ownership of marine assets such as cargo ships, Yachts, and more.

Users can invest in an actual ship, leverage the vast trade dependency of the global supply chain, and take home a decent ROI. The tokenization of marine assets will also help the maritime industry to grow with the influx of capital from newer sources and serve a bigger purpose by stimulating the supply chain.

Bonus Section — Financial planning for millennials

There are a few key things to keep in mind when planning your finances as a millennial:

1. Invest in your future: One of the best things you can do for your financial future is to invest in yourself. Invest in your education and career so that you can earn a higher income and have more opportunities to save and invest.

2. Start saving early: It’s never too early to save for your future. Begin by setting aside money each month to put into savings. As you get older and your income increases, you can increase the amount you save.

3. Invest for the long term: When it comes to investing, it’s important to think long-term. Consider investing in a mix of stocks, bonds, and digital assets that have the potential to grow over time.

4. Create a budget: A budget can help you track your spending and ensure you stay on track with your financial goals. When creating a budget, be sure to include savings as a priority.

5. Use credit wisely: Credit can be a helpful tool, but it’s essential to use it wisely. Avoid using credit to make impulse purchases or to live beyond your means.

Happy Investing!