A Beginner’s Guide to Choose a Crypto Fund
With the continuous technology innovation, cryptocurrency market continues to arise. Many people are encouraged to invest in cryptocurrency for their financial goals. The latter technology is a short, electronic and simple currency that enables encoding and decoding of information easily.
Furthermore, it is also efficient when it comes to purchasing, selling and investing. Thus, the process does not involve the government rules and banking systems. Well, are you planning to invest in the cryptocurrency industry? Don’t worry since the following ideas can guide you to choose a crypto fund.
As a beginner in the cryptocurrency and blockchain industry, you need to have crypto funds. It is the best way for you to trade without hassle and worries. There are several tokens in the cryptocurrency field namely Token-as-a-Service, Pentafund, and Crypto20. With this, you need to choose the one whom you think can satisfy your needs.
After reading this article, you will learn the about how crypto funds work and which one matches to your investment.
Algorithmic Trading VS Manual Trading
You can make returns with your crypto funds through profitable trades. When choosing your funds, there are two basic approaches namely the algorithmic trading and manual trading. In manual trading, you are making things hands-on. In this type of trading, the fund manager uses different techniques, experience, knowledge, and intuition to choose what cryptocurrency trade to use.
On the other hand, algorithmic trading also known as automatic trading allows the trader to outline the rules based on a computer program form. Here, the rules are automatically executed using real-time market data. One rule example is like “buy Bitcoin if the price drops below $X.”
Manual trading can work well if you choose the right currencies. While the algorithmic trading can work best if you have the right patterns.
It is a crypto investment fund that utilizes both algorithmic and manual trading to profit from both. Here, the blockchain experts select solid crypto investments to cash in. The team uses algorithmic strategies to perfectly time trades and react to several changes in the market at fiber-optic speed.
This fund utilizes a hybrid approach “diversifying in strategically important assets, as well as taking swing positions on exchanges,” as explained on their website.
Index Funds vs. Venture-Style
Investing in venture-style is compared to reading the future. Here, you choose the future unicorn companies in the market for blockbuster returns. Meanwhile, you can also prefer for index funds. It offers very low-risk investments.
This cryptocurrency index fund can maintain a portfolio of the top 20 cryptocurrencies in the market.
ICO investing VS Mining
Through mining, you can get new cryptocurrency in the market. Profitable mining highly depends on access to dirt cheap electricity, technical knowledge, and capital to buy particular mining equipment.
It is a crypto mining fund that allows the team of miners together with investors so everyone will profit. It uses investor funds to invest in technology and infrastructure behind cryptocurrency mining, power sources, warehouses, and computers.
As a beginner, you need to choose to best crypto fund that matches to your needs.