Cryptocurrencies are not impacted either by inflation, or by political and economic situation. That’s why long ago they have become an attractive tool for large players in investment sphere. In addition to the classic hedge funds (investment funds aimed to increasing the investor’s capital, giving it to the trust management of the fund), similar cryptocurrencies funds, which works using the same principles, began to appear.
This is not surprising, since the market capitalization of cryptocurrencies has exceeded the $ 100 billion level. The majority of these funds goes to BTC. Even large funds began to add cryptocurrencies investment portfolios.
All investors are interested in increasing their capital, however, they do not always have the needed analytical knowledge to do it in a right manner. The coins’ price is so unpredictable that you can lose all your investments within one day as well as you can double it for the same time. In addition, not all the cryptocurrencies have investment potential. Also take in account that any person can make up his/her own cryptocurrency, make a fuss around it, raise money and safely disappear with them.
In this situation hedge funds can help investors by their ability to manage and multiply the capital. Hedge funds focus on market indicators, use analytical tools and create the deposits’ strategy of their shares in shares of other companies.
In cryptocurrency funds you should buy their own tokens, which play role of shares. At any time tokens can be sold. Such organizations have a limited list of cryptocurrencies and make up a cryptocurrency portfolio based on analytical data for the last several months for each currency. For example, Alternative Money Fund has managed to make profit of more than 2000% on deposits since 2017. There is even a Catalyst project, which allows you to create your investment funds, managed by AI.
If you are planning to become an investor, you must have an amount of $ 25,000 to transfer it to the fund’s account (in some funds this amount may be less). Most often, the average amount of investment in such funds is $ 1 million, which must be invested for a period of at least one year. The fund takes a commission fee of 2% for trust management from the deposit amount and deducts 10-20% of the profit on the deposit in case of success. Such investments are considered to be risky. However, cryptocurrencies funds can compensate the losses on deposits of currencies, which price have decreased dramatically by incomes from deposits in currencies, which price has shown the growth.
Hedge funds are subject to mandatory certification of regulatory authorities in all countries. If you want just open a hedge fund and accept investments, it will not work. However, cryptocurrencies still remain in the legal vacuum, because they are not regulated in any way in many countries. So far, all attempts to make the activity of cryptocurrencies funds official have failed.
So, the Americans – the Winklewoss brothers, in 2017 applied to the SEC – a supervisory and regulatory authority for regulation of their own cryptocurrency fund. The SEC refused for their request, referring to the absence of control on this market. The same has happened with SolidX Bitcoin Trust, which also got a refuse from SEC after several reschedulings of the solution.
Also, the application to the SEC was submitted by the VanEck fund. The creators plan to invest in bitcoins, and if the regulatory authority makes a positive decision about them, the investments will be transacted through the registered place in the Cayman Islands. It is planned that even the owners of a small amount will be able to make investments.
Crypto Fund is on its way of a successful coming through the process of registration in the Swiss crypto-valley – the city of Zug.
The amounts for investments in cryptocurrencies funds should be big, so you need to choose them carefully. First of all, we recommend that you pay attention to the scheme of the fund’s work. The more it is detailed and transparent, the greater the possibility that fund is reliable will be.
You are advised to pay attention to the ROI. It is much higher than in traditional funds due to the high volatility of the cryptocurrencies, but it cannot be fixed. If you notice that the fund offers a stably high interest rate on the deposit, most likely you have met with a Ponzi scheme. No one of cryptocurrencies funds with a good business reputation can guarantee a constant high profit rate, because this market is unstable.
An important indicator is the team of the project. A reliable organization will do its best to get acquaint the potential investor with developers and managers. As well as it will transparently talk about them and their work. Before making investments, be sure to call the manager via Skype. Even it is better to have a live meeting in the office of the company.
The professional fund will try to provide its readers with useful information. It actively keeps a blog on the website, social networks and appears with news in the mass media. In this case all released materials contain as much as possible deep analytics, instead of advertising.
Below you will find a small overview of cryptocurrencies funds, which already deserve a good business reputation among users.
The developers of the Californian platform have created an unusual project based on the Ethereum blockchain. Alternatively, to other cryptocurrencies funds, in Numerai, all transactions are performed by learning algorithms that are created by third-party developers. In the case of successful trade, the developer receives a reward in the own currency of the Numeraire platform. The most successful make a profit of $ 15,000 per month and $ 50,000 per year. According to the platform data 1 NMR is traded at the level of $ 8.56.
Investments start from $ 7000 based on the principle of auction: the more you invested, the greater the probability of success will be.
From the moment of its foundation in 2017, it has earned more than 300% for its investors in two months.
The investor invests money in the TKN token, and the deposit is distributed between the cryptocurrency assets, most of which are Ethereum assets. The platform takes a commission fee of 5% from the purchase of tokens, which is distributed between customers’ technical support and management.
It is an investment platform of a closed type. Investors buy TGEs tokens, receiving 50% of the profit each quarter, 25% of which are reinvested for further replenishment of capital. This platform works on the basis of Ethereum blockchain according to the business model “Token-as-a-Service” (a token as a service).
An interesting fact is that the development of TaaS includes the following feature: all the holders of the token as well as other people can analyze the project’s transactions using monitoring methods based on the crypto-technologies.
Token TGEs is traded at the level of $ 2.5 (the initial price was $ 1), and the market capitalization exceeds $ 20 million.
This fund was founded as a venture capital fund in 2013. At the moment it is large-scaled and invests in start-ups. In fact, the project has operated as an investor for such projects as Ripple, Gem, Chain. The company believes that the more technologies like blockchain will spread, the fewer companies working in the old fashion mode remain.
At the moment company is investing in the following projects:
As well as the projects by Airbnb and Kraken.