Investors are eager to invest in the next technological revolution.
Cryptocurrency and blockchain technology have become incredibly popular amongst individual and institutional investors across the globe. Many have been leaning more towards investing in hedge funds relating to the cryptocurrency industry instead of the individual cryptocurrencies.
See JP Morgan: Crypto Could Help Diversify Portfolios
Traditional Retail Firms & Stock Brokers Tell Clients “Our Hands Are Tied”
Stock Brokers are tired of being asked by clients if they can invest in cryptocurrencies and blockchain technology
We’re not aware of any products available from traditional or online brokers that will easily allow you to invest in cryptocurrencies, outside of doing so on your own with an account with one of the exchanges that buy and sell them.
Cryptocurrencies were the best-performing currency in 2015 and by far the best performing asset class of 2017. Business Insider, Forbes & CNBC covered some of the outlandish returns in some of the top cryptocurrency hedge funds last year.
There are Crypto Hedge Funds that did over 24,000% and 80,000% respectively in 2017. And no, That’s not a typo.
It’s important that you recognize that these investments are not for the faint of heart, but it’s growing and yes, they present a very real investment opportunity.
Alternatives To Traditional Portfolio Allocation
We believe that the time has come for investors and financial firms to classify investing in Bitcoin, cryptocurrencies and blockchain based technologies as alternative investments, and thus having a place in a properly allocated investment portfolio. Over the next few years, it’s clear there will be more and more opportunities to invest in them. As these investment opportunities open up, they need to be classified appropriately in order to be placed in investor portfolios using proper asset allocation models.
Most people will dismiss them, including probably your advisor. But we venture to say that with the progress (and profits) being made, over the next year or two, we won’t be the only person telling you about how they may fit the alternative investment sleeve of your portfolio.
Cryptocurrency Investment Vehicles
SELF MANAGED
Buying Cryptocurrency With Coinbase or Robinhood
If you’re interested in buying Bitcoin or one of the other better-known cryptocurrencies your best bet is CoinBase or Robinhood, the former supporting Bitcoin Cash, Ether, and Litecoin. Robinhood has more options. The popular digital exchanges are easy to use and widely trusted, though Coinbase does go offline occasionally when trading is particularly frenzied.
Other concerns with Coinbase include users reporting transfers not posting, accounts closing without valid reason or way to respond, and terrible Customer Service. Not something a lot of people feel comfortable with when considering to transfer 1000’s of dollars. Not being able to get a response for weeks at a time leaves many choosing other options with better service. Not to mention Coinbase recently turned over users to the IRS. Robinhood new user registration has seen an explosion in poularity, but it is still unavailable in many states, so depending on where you live, you may or may not be able to trade with Robinhood.
Buying Cryptocurrency Without Coinbase or Robinhood Apps
If you want to buy Ripple or one of the other up-and-coming cryptocurrencies, you’ll have to look beyond Coinbase and Robinhood. Some of the more popular options are Binance which supports a wide variety of cryptocurrencies. Another is Kucoin which supports a number of smaller cap cryptocurrencies. Both have referral programs that can earn you passive income if you invite others to join.
Join Binance with this link to save on trade fees and be eligible for Prizes & Giveaways
Join Kucoin with this link to save on trade fees and be eligible for Prizes & Giveaways
ETF’s
Only a handful of ETFs and other exchange traded products have significant exposure to Bitcoin or other cryptos. One is Grayscale’s Bitcoin Investment Trust ( GBTC ). It’s attracted $1.4 billion in assets and is up more than 680% this year.
HEDGE FUNDS
One of the main reasons that these institutional investors have refused to put their money into the individual currencies lies in the fact that they are relatively unstable. This is where the idea of cryptocurrency hedge funds come in.
Actively managed hedge funds are able to give investors a broader and more secure way to invest in cryptocurrency, without being subject to as high degree of risk. Obviously assuming that you are dealing with a reputable group and a manager with experience.
There are a ton of cryptocurrency hedge funds run by newcomers with little to no experience managing assets. Choosing to work with a reputable firm is extremely important.
Get Access to the Top Performing Hedge Funds, run by seasoned Advisors with investment management experience
Security & Regulation
The biggest challenges hedge funds are facing relate to security and regulation. With security/custodian solutions still being developed by third party companies, and some large banks not yet providing custodial services.
As to regulation, the top cryptocurrency hedge funds usually partner with top law firms and regulatory experts to ensure that they stay abreast of new regulation and have an eye on the horizon for future decisions by the SEC and other regulatory bodies.
The market is evolving, and money that’s been made in blockchain and crypto is being invested back into the sector, leading to increased competition and the creation of new coins and service providers, one hedge fund expert said.
Those who can identify the future leaders can make a lot of money.
Explosive Growth
According to the new index launched by Hedge Fund Research, investors have a huge interest in cryptocurrency hedge funds. There was “explosive growth” in crypto hedge fund interest by investors over the course of the last year.
Cryptocurrencies could go on a bull run greater than last year and pass the trillion-dollar mark in terms of value, experts told CNBC
Read: Cryptocurrency Market Could Hit 1 Trillion This Year According To Experts
“There is 200 Trillion dollars tied up in stocks, bonds, gold & cash. I am not excited about putting my money into any of those 4 options right now. If 1% of that 200 Trillion finds it’s way into cryptocurrencies over the next 10 years you’d be looking at a 2 Trillion Valuation. 12X what it is today.” – Ronnie Moas
Given how many new crypto-millionaires were minted in 2017, complete newbies and others with little understanding of the technology or investment experience rushed in to capitalize.
Many have started funds with Bitcoin and other cryptocurrencies at or near all-time highs.
Get Access to the Top Performing Hedge Funds, run by seasoned Advisors with investment management experience
Disclaimer:
The information provided on this website does not constitute investment advice, financial advice, trading advice or any other sort of advice and you should not treat any of the website’s content as such. CryptoClarified does not recommend that any cryptocurrency, game or token should be bought, sold or held by you and nothing on this website should be taken as an offer to buy, sell or hold a cryptocurrency, token, game or anything similar. Do conduct your own due diligence and consult your financial advisory before making any investment decision.
Accuracy of Information:
CryptoCurrency Clarified will strive to ensure accuracy of information listed on this website although it will not hold any responsibility for any missing or wrong information. You understand that you are using any and all information available here AT YOUR OWN RISK.
Price Risk:
The price of Bitcoin and other cryptocurrencies are highly volatile. It is common for prices to increase or decrease by over 20–100% in some coins in a single day. Although this could mean the potential for huge profits, this also means the potential for huge losses. The same goes for CryptoCollectible games which can be wildly speculative. DO NOT INVEST ALL YOUR MONEY IN CRYPTOCURRENCIES. Only invest money which you are willing to lose.
Cryptocurrency trading may not be suitable for all users of this website. Anyone looking to invest in cryptocurrencies should consult a fully qualified independent professional financial advisor.
The post Investors Eager To Invest In The Next Technological Revolution | Cryptocurrency & Blockchain Technology appeared first on CryptoClarified.
