Crypto Hedge Funds Will Rule The Day

in LeoFinance •  last month 

Most of us have all heard of Financial Legends such as Ray Dalio and George Soros. When it comes to investing and making money, these two individuals are constantly outperforming the rest of the world. I’m sure it doesn’t hurt to have billions of dollars, but success in the financial market is difficult when working alone.

In order to build a healthy, top performing portfolio, one must be risky enough to explore investments that can provide a high return. An example of this type of investment is a hedge fund. Hedge funds are investment funds that are strategically designed to protect investors from market uncertainty, while generating positive returns. The reason that Hedge Funds are so successful is because they are handled by teams of experts, and constantly examined for flourishing results. These types of financial vehicles have been around for some time, even before Cryptocurrency was a thing.

You may have guessed it, yes Cryptocurrency Hedge Funds are a thing! A few popular Crypto Hedge and Index Funds that have seen outstanding results in the market are: Bitwise Asset Management, Coinbase Index, Crypto 20, Iconomi and BB Index. On top of greatly reducing the risk of investing, these funds can help people save a lot of time and money. For anyone new to Cryptocurrency, which is A LOT of people, investing in a single coin can be scary and may seem risky. Buying into a Hedge Fund or Index Fund gives you the same kind of portfolio diversity as a regular Hedge Fund. Putting together a diverse portfolio also requires countless hours of research and pricey trading fees, unless you use a commission free trading platform. By simply using a Crypto Hedge Fund, you can expect the experts to make all the decisions and to pay much less in transaction fees.

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A lot of these crypto hedge funds (and a lot of traditional hedge funds as well) use complex algo’s and models - even outright market manipulation - to get higher returns.

I’m not a huge fan of these types of funds personally, but it’s clear that some people are getting rich from them. The idea of a more transparent hedge fund is interesting and I think we’ll see those arise out of the crypto sphere before any other investment class

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and I guess another thing is that they are also investing in rounds for projects where normal "mortals" have no access and they do not only have coins and tokens but buy into crypto projects and companies