Digital Assets

To know digital assets is to use them – this Element shows how.

Digital or crypto assets, existing solely in electronic form, serve as the foundational elements for decentralization across various sectors, notably finance. Decentralization involves a peer-to-peer network validating transactions via digital protocols. The challenges are difficulty in achieving decentralization, security, and scalability.From the perspective of an investor, digital assets are an alternative class of assets. They have several features that differentiate them from traditional investments. This makes them well-suited for a diversified portfolio. The question is how to accommodate them in such a portfolio, how to manage their potential and risk, and how to evaluate them. This short book explains how to include digital assets is a diversified portfolio. It focuses on their differentiating use cases, their idiosyncracies, and how they relate to other types of investment. This is a volume for practitioners and students in finance, asset management, or portfolio construction.