Definition ∞ Digital Investment refers to the allocation of capital into assets that exist primarily in digital form, such as cryptocurrencies, non-fungible tokens (NFTs), or tokenized securities. This involves purchasing, holding, and trading these assets with the expectation of financial return. It represents a modern asset class with distinct characteristics compared to traditional investments. Understanding digital investment requires knowledge of blockchain technology, market dynamics, and associated regulatory frameworks.
Context ∞ The landscape of digital investment is rapidly expanding, attracting both retail and institutional participants seeking alternative asset exposure. A significant discussion centers on regulatory clarity and consumer protection, as governments worldwide grapple with classifying and overseeing these novel assets. Future trends point towards increased institutional adoption and the development of more sophisticated financial products built on digital assets, influencing market stability and investor access.