How to Invest in Art with Blockchain and Fractional Ownership

How to Invest in Art with Blockchain and Fractional Ownership

Key takeaways

  • Artfi is a blockchain investment platform that aims to democratize the ownership of artworks by allowing investors to buy fractions of artwork.
  • Artfi provides investors with a secure and transparent way to access the art market.
  • Artfi offers investors an opportunity to explore, invest and leverage the world of arts with ease, without being limited by high costs.

Art is a fascinating asset class that combines aesthetic value and financial potential. It offers investors a unique opportunity to diversify their portfolio and enjoy the benefits of art appreciation. However, the art market has traditionally been inaccessible to most investors, due to the high costs and barriers to entry. Artfi is a blockchain investment platform that aims to change that by democratizing the ownership of artworks and allowing investors to buy fractions of paintings for as little as $100.

Why Invest in Art?

Art has a proven track record of long-term returns, outperforming many traditional investment vehicles. According to Artprice, blue-chip art has outperformed the FTSE 100 index by 407% from 2000 to 2022. Art also offers diversification and risk reduction, as it is a non-correlated asset that does not move in tandem with the broader market. This means that art can serve as a hedge against potential losses during periods of economic uncertainty or volatility. Studies have shown that including art in a portfolio with an expected return of 10% can reduce the overall risk from 10% to just 7%.

Art is also a tangible asset that can be displayed and enjoyed, offering a tangible and emotional connection to your investment. Unlike stocks or bonds, art can represent your passions and interests, making it a more satisfying form of portfolio diversification. Art’s status as a global asset also creates opportunities for geographic arbitrage and tax-efficient trading, as it is traded in multiple jurisdictions with different exchange rates and regulations. This global accessibility also results in worldwide demand for investment-grade artists, driving up the prices of artworks.

How Does Artfi Work?

Artfi is a platform that leverages blockchain technology and fractional ownership to make art investing easy and accessible for everyone. With Artfi, you can own a fraction of a vetted, reputable piece of art with a minimum amount of $100. By purchasing on the blockchain, you are also guaranteed an ironclad provenance that is tamper-proof and transparent. Artfi uses NFTs (Non-Fungible Tokens) to represent the fractions of artworks, which can be easily traded on the platform or other secondary markets.

Artfi’s team of experts carefully selects the artworks that are available on the platform, ensuring that they have a high potential for appreciation and liquidity. Artfi also monitors the market conditions and sells the artworks when the time is right, maximizing the returns for the investors. You can choose from a variety of artworks on the platform, ranging from contemporary to classical, and explore, invest in, and appreciate the world of art as a rewarding and diversified addition to your investment portfolio.

Why Choose Artfi?

Artfi is the ideal partner for your art investment journey, as it offers a combination of financial potential and personal satisfaction that few asset classes can match. By using blockchain technology and fractional ownership, Artfi lowers the barriers to entry and democratizes the ownership of artworks, making it possible for anyone to invest in art with ease. Artfi also provides a secure and transparent platform where you can access the art market, which has proven to be a lucrative and diversified asset class.

Artfi’s vision is to make art investing accessible for all, while preserving the integrity and value of the artworks. If you’re looking for a compelling and holistic solution to diversify your investments, Artfi might just be what you need.

Source: https://coincodex.com/article/33623/how-to-invest-in-art-with-blockchain-and-fractional-ownership/