How To Wisely Invest Your Money During The Coronavirus Crisis

Michael Reuter

7 July 2020

Because of the coronavirus pandemic, millions of people have lost their jobs, companies suffer from slumps in orders, and investments in innovation have been halted. However, the stock markets are still open for business and over the last weeks we have seen a significant swing, mostly induced by investments in stocks of companies that should benefit from the crisis. After the first wave of SARS COVID-2, many people enjoy their regained freedom of movement and have started socializing, again. However, there are countries with new highs in newly infected citizens and governments that have announced renewed lock-down rules. At this stage, nobody can seriously predict the outcome of the pandemic. Here, we show one way, how to wisely invest your money during the coronavirus crisis.

Investing money wisely requires some certainty of future economic scenarios. And this exactly is what everybody is missing at the moment. That’s the reason for many wealthy individuals holding significant parts of their wealth in cash on their bank accounts – rather preferring to pay negative interests against facing the risk of a new stock market crash. The most heard advice is to buy real estate. However, premium real estate still is ultimately expensive, and – reminded of The Big Short movie – no one would dare to invest in lower-grade assets. Finding the right real estate asset takes time and can result in a lengthy process. That’s the reason for looking further, to more innovative ways of investing in real estate: real estate tokens.

The Big Short movie

A real estate token, such as the Connex Coin, is a digital representation of a real estate asset – or, more precisely – a digital twin of representation of real estate assets. Connex Coin represents a junior loan to the company behind the Connex building, commercial property in central Munich, Germany.  To buy a token, the investor visits the Connex Coin website, informs herself about the asset, and provides some information about her as an individual investor, or as an institutional investor.  After having finished her registration and the KYC (Know-your-Customer) process, the investor can order Connex Coins starting with a 10 Euro investment. As an individual, she is allowed to invest up to 10.000 Euros, the institutional investor may invest more. Completing the first investment takes a few minutes, and the investor receives Connex Coins in her digital wallet. From now on, she receives a 3% interest p.a. on her investment, until she sells her Connex Coins back to the issuer. All investment information can be found on the Connex Coin website.

Especially during times of unrest, real estate investment tokens, such as Connex Coin, offer an interesting option for investors who want to stay on the safe side while not having to bother with complex investment procedures or tedious paperwork. Investing in digital real estate might be a wise alternative for cash holdings generating negative interest!