In this lecture, we will talk about funds: investment, venture, hedges.
Cryptocurrency is available to all users, so with the growing popularity of electronic assets, the number of their holders also increases. Many of them do not understand the peculiarities of using digital coins and do not have the experience necessary to increase capital.
This is why crypto funds are needed. They offer service of specialists who can predict the state of the market and know how to correctly invest in cryptocurrency in order to earn income.
Cryptocurrency investment funds can be singled out as a separate direction for making money on cryptocurrency.
Cryptocurrency investment funds are an organization that invests in cryptocurrencies with the money of investors. That is, you transfer your money to the fund in the so-called trust management. The fund buys cryptocurrencies on them, participates in ICOs, invests in startups and tries to make a profit. After the profit is received, the funds are returned to you.
Small cryptocurrency funds usually provide good annual interest rates (from 50%), but there are no guarantees of profit
These funds operate as a small team and primarily trade in the spot and futures markets.
The biggest plus of such funds is that they are designed for any user. That is, you can invest and make a profit, having from 20-50 thousand dollars of capital. What can not be said about large funds.
We also offer wealth management services to our clients. We collect investor pools with entry from $10,000 per person. The main direction of our activity is medium-term and long-term investments in the cryptocurrency market (1-3 years)
We select promising coins, select entry points, buy, monitor prices, and rebalance. For this we take 30% of the profit. It is also possible that we will launch a fund to participate in the ICO, but at the moment there is a poor time-to-profit ratio
We operate as a small fund, so we can afford to collect not 100 thousand or millions, but only from 10,000 dollars.
We also immediately warn that the cryptocurrency market is an extremely risky place, you should not invest all your funds here, only what you are not afraid to lose. However, this market also opens up completely unique opportunities (there are cases with 1000% profit). The higher the risk, the higher the potential profit.
We adhere to a fairly conservative strategy and take either very strong coins or coins with great potential, for this we constantly monitor and analyze the market.
If you are interested in such an opportunity — the link is in the description under the video.
Now let’s talk about larger business. Venture capital funds are investment organizations that invest in promising innovative companies, usually technology start-ups. They have a high degree of risk, but they can make sky-high profits if the project is successful.
The degree of risk largely depends on the stage of investment. For example, the highest probability of failing early is about 90%, since you have virtually no guarantees that the invested company will achieve its goals.
At a later stage, it is possible to see the dynamics of the project growth and analyze in what direction and at what pace it will move further. Therefore, here you risk only 20% and can expect a profit within 3-7 years.
How to make venture investments?
Venture investments are investments in a business at an early stage of its creation, before the company enters the public market with its shares through ΙPO.
1. If an investor is ready for losses for the sake of maximum profit, then he can act as a business angel. To do this, you need to look for startups for investment on your own. Transactions in this market are direct and private, and everyone uses, most often, their own methodologies to select potentially profitable projects in the future.
2. At a later stage, for investments in an already operating business, investments in venture capital funds can be offered. To do this, you will have to get the status of a qualified investor — there are legal restrictions designed to protect investors from losses associated with a lack of understanding of risks.
3. An even later stage of business development — already operating innovative companies in which you can invest money through mutual funds. Perhaps this approach will not provide an opportunity to buy shares of the new Facebook or Google at a very early stage and will not make a billionaire investor. But it will also bring good returns, but without such a high level of risk.
There are also hedge funds — they invest money directly in the purchase of virtual assets.
Hedge funds can invest in almost any risky asset. They can also earn on cryptocurrency price fluctuations. These funds do not list their shares on exchanges.
Instead, they sell shares directly to contributors. At the same time, if a hedge fund is regulated, then by law it can only cooperate with qualified investors.
Regulated crypto funds have a fairly high entry threshold:
American hedge funds can only work with qualified investors who have capital of at least $5 million.
Offshore funds mainly work with investors who have capital from $100,000.
Investing in hedge funds is available, frankly, to a rather narrow circle of people. Yes, millionaires and billionaires can make fortunes by investing in them. But, as practice shows, no one can say for sure in advance which hedge fund will constantly bring 100% per annum.