Wealth99 is one of the new generation of financial products companies selling a range of blockchain-based assets - namely tokenized precious metals and a selection of the world’s largest and most high-potential cryptocurrencies.
So what is Wealth99?
The clue is in the name. Wealth99 positions itself as a way for everyday people to invest in alternative assets. They believe that everyday people have been blocked from being able to purchase alternative assets – largely due to unfair regulations and high financial barriers to entry.
Thus they haven’t been unable to diversify their investment portfolios properly, or get the chance to get in on the early stage of exciting new companies.
So what are alternative assets?
Alternative assets are defined as investments that aren’t shares or bonds. For many portfolios, the standard division between shares and bonds is 60% shares and 40% bonds - that’s the 60/40 investment strategy. But given the lacklustre performance of 60/40 portfolios in recent years, diversifying into other assets makes sense.
Wealth99 says that using blockchain to create tokenized assets and enable fractional ownership lets everyday people invest in items that were once too expensive. Tokenization is the process of creating digital representations of real-world assets, thus making them vastly easier to purchase and sell online.
Wealth99’s tokenized gold is a prime example of tokenization in action. Before tokenization came along, the standard unit of investment in gold was a gold bar worth around $80,000. But when you tokenize that bar (as Wealth99 has) you can purchase just a fraction of an ounce, and get started as a gold investor from as little as $500.
How does Wealth99 Work?
It works like most investment companies do; with a network of specialists on-hand to offer client support. But there is a worthwhile difference in that Wealth99 also has its own DIY online asset exchange. This means clients can buy a selection of cryptocurrencies and tokenized precious metals through Wealth99’s user-friendly online platform at their own discretion.
Wealth99 has its headquarters in Australia and also has a team in the UK. It complies with the relevant investor regulations in both those places and uses an EU crypto trading licence.
How to buy alternative assets at Wealth99
Like any online platform, the first step is to register, but as Wealth99 is a financial products company all new clients have to go through a government-mandated KYC and AML vetting process. Once you’re approved you’re good to go. You log on to the asset exchange using 2FA as an extra level of security, go through the prompts to deposit the amount of funds you want to invest and select the asset you want to buy (or sell).
As part of registering for the exchange and buying the various assets available there, you’ll be assigned a digital wallet. These are highly secure blockchain-based storage units where you can keep your cryptos or precious metal tokens safe online.
Customer Service
Many Wealth99 clients are newbies in the world of cryptocurrencies and tokenized assets, so the company has made sure its customer service is on point. There are the usual FAQs, and chat functions - but there is also a team of humans who aim to get back to inquiries personally within 24 hours.
Safety and Security
As we mentioned above, clients must pass KYC and AML vetting. The exchange uses 2FA for all logins and an email is automatically sent to the client’s registered email address to alert them of new logins to their account.
Assets held on the Wealth99 exchange are secured by third-party custody and vaulting companies. Most of the cryptocurrencies Wealth99 lists are custodied and insured by Bitgo, and the physical precious metals that the tokens represent are vaulted and insured by one of the world’s biggest bullion houses.
What is Wealth99 tokenized precious metal?
Wealth99 doesn’t just offer major cryptos – the company has also pioneered its own innovative product; tokenized precious metals. When you buy a Wealth99 precious metal token you are in fact buying the corresponding physical metal. The token simply represents a record of your ownership of a certain amount of gold, silver, platinum, that’s recorded on a blockchain. In this case each Wealth99 gold token represents one troy ounce of investment-grade gold.
Because the tokens are divisible you can buy a fraction of a token/ounce. This means you can invest in gold from as little as £/$500. The actual gold is stored and insured on your behalf by Wealth99’s bullion partner. If you buy over a certain amount you can actually redeem your token for the physical metal itself. However, security concerns mean that no one recommends you store your gold at home.
Advantages of Wealth99
· Wealth99 offers an affordable way for everyday investors to diversify their investment portfolios with tokenized alternative assets.
· It has its own asset exchange so its clients can learn about assets and buy and sell without leaving the one platform.
· Assets held on the Wealth99 exchange are stored and insured by third parties.
· Wealth99 is operated more like a traditional wealth platform rather than a high-tech start up making it more accessible to first-time investors.
Disadvantages of Wealth99
· Currently, the range of assets offered on the Wealth99 exchange is limited.
· Owning assets secured on a blockchain is still unfamiliar to many people, so the market size is limited to people who are willing to try something new or are already experienced crypto investors.
· Wealth99 operates in Australia and the UK excluding people from other countries who can’t meet its KYC and AML compliance requirements.
Should you invest with Wealth99?
Selecting any new investment or company to make your own investments requires that you do your own due diligence. The first step is visiting the website and checking out the management team.
See who they are and then follow up by checking their profile on LinkedIn. In this case, the Wealth99 team features proven business people with significant experience in fintech and blockchain product development.
It’s also important to understand that like any investment, the money you put into tokenized assets of any sort can drop as well as increase in value. Only you can make that assessment in respect of Wealth99.
However, our evaluation of Wealth99 suggests that they are worth talking to if you are looking for a way to diversify your investment portfolio with alternative assets.
You can get more information about Wealth99 and its services at wealth99.com
