The digital value industry attracts investors with large and fast incomes, which is possible only in the conditions of active development of the new industry. But not everyone is able to find the time and desire to explore a new market, investing in which is significantly different from investing in the stock market, for example.
It is possible to invest in cryptocurrency by transferring its assets to trust management professionals. Special crypto funds have been created for that.A crypto fund is an adaptation of traditional funds that makes it easier for new investors to navigate this alluring new asset class. Crypto fund will buy and trade coins instead of you buying and trading them directly.
What is a cryptocurrency fund?
Cryptocurrency funds — organizations that provide services for trading and investing in digital currencies to private investors. A crypto fund is an analogue of investment funds, and only its scope is limited to the cryptocurrency market. Such organizations offer cooperation to potential investors in which their investment capital will be managed by professionals. A team of experts in the cryptocurrency market will lead operations with digital currencies, which according to their analysis and opinion can bring profit that will be passed on to investors. Of course, it will not be free, crypto funds charge a commission for their services. Some funds charge a commission on profits and some on investment capital. When applying for a cryptocurrency fund, the investor transfers his funds to the commission, and the company undertakes to manage them in order to increase and pay revenues in a timely manner. Cryptocurrency funds include: competent formation of the client’s investment portfolio; search for potential earning potential; choice of management strategy; investment analysis; risk evaluation. All existing cryptocurrency funds can be divided into two categories. Funds that invest exclusively in start-ups are being developed by podICO. The return of such funds is largely determined by the growing popularity of the company’s products. Counterfeit hedge funds that deal exclusively with cryptocurrency trading, and it determines the fund’s profitability.
Why we need cryptocurrency funds?
With the growing popularity of cryptocurrency, the number of people who want to invest in this young and fast-growing sphere has also increased. But not everyone has the desire to study in detail the characteristics of the market or enough time for continuous monitoring of cryptocurrencies. Almost every day, new promising currencies enter the market, which can bring significant income when investing in the initial stages, but if traders with many years of experience can immediately assess the prospects of a particular cryptocurrency, then this is not always an obvious fact for beginners.
For beginners, cryptocurrency mutual funds are an opportunity to invest with minimal risk, as professional traders are involved in the allocation of investment capital, and for experienced investors. It is an opportunity to reduce the cost of making a profit. The cryptocurrency market is quite unstable, which is why it can bring more income from the stock market, but the number of force manure situations in it is also much higher. Professional traders can use this to their advantage, but for beginners it often has negative consequences. One of the fund’s responsibilities for cryptocurrency is the proper allocation of funds and minimizing risk during exchange rate jumps.
Is it worth investing in crypto funds?
If the investor is well versed in the world of digital currencies and the basics of trading, and has the necessary temporary reserve, he does not need the services of an intermediary. Otherwise, cryptocurrency investment companies allow you to start investing in the world of digital currencies with minimal knowledge and time. It is important to remember that the investor in cooperation with the crypto fund loses part of the profit paid for the company’s services. Depositing funds in a cryptocurrency fund is a wise decision for start-up investors, who can increase capital and minimize risks, but choose your commission carefully. The unsuccessful investment activity of the company due to the inexperience of the management does not cover payments to investors. There are also frequent cases when the financial pyramid is hidden under the guise of an investment fund.
How to choose a cryptocurrency investment fund?
In order for a newcomer to organize a stable income, you should transfer your finances to the trust of management professionals. The professionalism of a company can only be assessed by analyzing its previous activities. When choosing a cryptocurrency investment fund, you should definitely pay attention to seven key indicators: History and achievements of the company. First of all, in order to assess the performance of the investment fund, it is necessary to analyze the performance of its work in previous periods. It should be understood that during trading it is impossible to fully operate without withdrawing funds, but their number and duration may indicate how the company’s management can deal with them and how it has properly shaped the investment portfolio. The company’s experience in this field can also become a guarantee of professionalism. Team openness and statistics. It is good if the cryptocurrency fund provides complete information about its team, feel free to name the real names and provide open statistics about its activities. Replacing this information with promises and describing the benefits of cooperation should alert a potential investor. For such promising sites can not hide a productive investment fund, and a financial pyramid, which at any time may cease to exist, canceling the capital of investors. Formal agreement of the parties. It is worth cooperating only with that of the organization
Adequacy of service costs
Crypto currency funds deal with commissions. Some companies charge interest on profits, some charge a fixed interest rate on the entire property, and a combined payment system is possible. It should be understood that a professional trader will not work for monetary units, and even more for free. By choosing an investment fund, it is better to adhere to the strategy of sharing profits with a team of professionals, instead of entrusting funds to the management of novices, but on a more attractive commission. Strategic planning. Each crypto-fund has its own earning strategy. Many people use long-term investment tactics in reliable projects with minimal risks, while for other risky investments they seem mostly profitable. Each of the options has a right to exist, the success of which can be monitored by analyzing the existing experience of the foundation. It is important that the strategy developed by the experts is appropriate for the investor according to the degree of risk. Reputation. Before you trust your finances in management, you need to seek investor reviews. It is worth paying attention not only to their content, but also to the style of writing and uniqueness. Identical reviews written in inanimate language by different users may indicate that they are fake.
The cryptocurrency market is only developing and in many countries there is no legal regulation of the activities of cryptocurrency companies. In some countries, cryptocurrency is banned, but somewhere it is gradually shifting to the state level. When choosing a crypto fund, you need to consider the laws in which it is subject and whether its activities are legal. If the fund has an internal cryptocurrency, it would not be superfluous to pay attention to its quotes, which also reflects the company’s reputation. List of crypto funds Blockchain Capital is a cryptocurrency fund founded by Bart and Bradford Stevens and Brock Pierce in 2013. The Foundation operates in the United States and is subject to U.S. law. Primarily, the fund invests in projects that can be useful for the development of blockchain technology. Among the company’s assets can be found high-profile projects: Ripple, Kraken, Coinbase, Wave, ShapeShift, BitGo, Civic and others. Fees for funds are dynamic and depend on the amount invested, and there is no minimum entry threshold.