May 29, 2020

How to choose crypto asset manager

Geeks and crypto-anarchists were the first cryptocurrency investors. Nowadays, many investors are drawn to that asset and aspire to add a pinch of crypto to it. Today, those who got their first million on Facebook, Apple, Google shares, want to buy Bitcoin.

Fund owners use their usual tools, and asset management is one of them. As we all know, where there’s demand, there’s supply.

Who is Mr. Asset Manager?

Companies as well as private experts can manage funds and put them to work with cryptocurrency. Since 2017 many investors have been using their services because money management is a popular way to get passive income.

Traders or companies accept investor’s funds to make margin trading and make financial operations to profit. A trader has a fixed percentage of profit as a fee and the rest of it is for a capital owner.

An important aspect of cryptocurrency is the inadequacy of laws. There are some special treatments with digital assets: stealing money from the crypto wallet and freezing funds on cryptocurrency exchanges. You can hardly get the investments back after it.

So choose the asset manager carefully and pay close attention.

The main criteria

You’d better rely on other investors’ real experience to make choices. You can use the recommendations of your friends and partners; analyze statistics and rate on a cryptocurrency exchange; require reviews on trader’s work and check them with your networks.

If there are several alternatives, you should take account of the following factors:

  • Manager’s fee (could be 5-25% and normally bigger for companies);
  • Profit shifting (see, if the payment schedule is suitable for you);
  • The threshold for entering (also higher for companies);
  • The success of a trader or company.

The last point is the most important one too. According to statistics, more than 90% of traders often meet with failure and then try to hide it. Ask forconclusive proofof their successful strategy on a cryptocurrency exchange.