The saying that “opportunity comes but once” is quite true. However, it is not in all cases that opportunities are lost forever; opportunities sometimes “re-present” themselves for you to take advantage of. Bitcoin investment is one of such opportunities that came, and a lot of potential investors failed to seize it the first time, allowing it to slip from their hands. But today, the opportunity presents itself differently.
Are you one of those who could not buy bitcoin in 2009 or failed to obtain BTC when it was still relatively cheap? Well, if you are, you don’t need to worry. Life must go on.
A similar opportunity has come to light – but this time around, you must not fail to seize the bull by the horns.
A cryptocurrency investment fund is an opportunity to prosper in the cryptocurrency world. It is a project you can leverage to get what you lost in the past as far the crypto-sphere is concerned. But what exactly is a cryptocurrency investment fund?
What is a cryptocurrency investment fund?
A cryptocurrency investment fund is a pool of capital which is professionally managed and made accessible to outside investors, where the bulk of the AUM (Assets Under Management) are invested in cryptocurrencies that are tradable publicly. Examples of cryptocurrencies that you can invest in through a professionally managed fund include Bitcoin, Ethereum, Litecoin, Dash, and many other altcoins and several digital tokens that you can find on Coinmarketcap.com.
Where do you find a cryptocurrency investment fund to invest in?
There are a few cryptocurrency investment funds out there where one can quickly commit one’s capital, with the hope of acquiring useful cryptocurrencies that have the prospect of appreciating in value in the future to grow one’s wealth.
One good example of a cryptocurrency investment fund is the CRYPTO20 index fund, which offers investors an opportunity to diversify into twenty, directly linked cryptocurrencies with a single token.
What are CRYPTO20’s benefits over other fund ICOs?
- CRYPTO20 is not a ‘platform’, it is a fully functioning product whose development is complete.
- It does not derive its value from speculation. CRYPTO20 offers diversification into twenty, directly linked cryptocurrencies through just one token. The fund rebalances the holdings weekly to ensure that it always tracks the top 20 tokens, even if they change. This is done much in the same way an SP500 index fund tracks the top 500 US stocks by market cap.
- The smart contract directly ties principal assets to each token. This helps to protect the price of the token – the token will continue to maintain its worth and will not go below its share of the fund assets.
- CRYPTO20 charges significantly lower fund fees because they are not a platform.
- With CRYPTO20, intermediaries and middlemen are eliminated. While other ‘fund platform’ ICOs pledge to pay you high returns as people invest into future funds created on their platforms – the funds have to pay the creators of the platform, managers of the fund, as well as the platform token holders. CRYPTO20 does not need to pay any third parties because it is an automated fund token.
- The hyperparameters of the fund have been carefully determined via data science.
- Index fund strategy is based on public rules and can be automated. This ensures there is investment discipline and takes human bias and emotion out of the management of the fund. It will be impossible for CRYPTO20 fund administrators to be involved in ‘rogue trades.’ This gives investors peace of mind.
CRYPTO20 benefits over traditional funds
CRYPTO20 also has some advantages over conventional funds. Some of the benefits on offer include the following:
- It does not charge broker fees or advisory fees.
- It can trade at any time, not just once per day as with ETFs on the stock exchange.
- It is possible to buy or sell a fraction of a token.
- Legacy banking fees do not apply, and there no expensive fund managers that charge upwards of 3%.
- It exposes you to cryptocurrencies.
- It is 100% transparent. Investors can check each wallet address on blockchain to verify fund holdings.
- Investor fund tokens are entirely under their control and can be liquidated to the underlying assets at any time.
Conclusion
A cryptocurrency investment fund is one way to own Bitcoin or other forms of altcoins, even though you missed the opportunity to own bitcoin initially. You do not need to spend hours researching coins and speculating on price; the fund takes care of it for you. The risk is mitigated by diversification across many cryptocurrencies so that the success or failure of your investment does not depend on a single coin.
Disclaimer: The opinions expressed in this article do not represent the views of NewsBTC or any of its team members. NewsBTC is not responsible for the accuracy of any of the information supplied in Sponsored Stories/Press Releases such as this one.
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