The rise of cryptocurrencies and blockchain technology has created a financial ecosystem worth over $2 trillion in 2022. There are over 130 million bitcoin users, and the popularity of crypto shows no signs of slowing down.
This is mainly due to the ever-dynamic crypto market that has witnessed the rise of decentralized finance and NFTs in the past 24 months. It is therefore unsurprising that many people have turned to cryptocurrencies. Crypto-assets serve as a source to hedge inflation and as a potential wealth creation asset class.
However, like most investment vehicles, the cryptocurrency market is highly volatile, and a wrong move could cost an investor thousands of dollars. This dilemma has led to the rise of crypto-asset management solutions.
Operations Similar to Hedge Funds
Crypto asset management solutions act like hedge funds and help investors manage their funds in return for a fee. Like hedge funds, crypto management platforms hire analysts and financial experts to ensure that funds are leveraged to generate returns.
In addition, they deploy analytical tools to ensure they have an edge in the market. However, unlike traditional hedge funds, crypto asset management platforms have the added advantage of transparency.
Since they are usually deployed on a smart contract or integrate a DAO system, investors can track their assets and know how they are deployed. In addition, there are more options to increase asset returns like staking, yield farming and more.
With such utility and options, asset management solutions appear to be gaining traction within the crypto ecosystem.
Choosing The Right Crypto Asset Management Platform
The crypto market has a few options for asset management platforms, but here are some key features to note for investors.
Low Management Fees
The major aim of cryptocurrencies is to eliminate high fees associated with traditional finance, and the ideal management platform should follow this ideal. In most cases, crypto asset managers offer as low as 1-3% in management fees. While there are a few like Crypto4Winners that don’t charge management fees.
Safety and Transparency
It is an open secret that crypto platforms are the targets of high profile hacks by cybercriminals looking to take advantage of vulnerabilities. Therefore investors need to adopt a platform that deploys the latest security measures and, if it is a decentralized platform, well audited smart contracts.
Many crypto asset management platforms deploy a mixture of hot and cold wallet systems to ensure the safety of clients’ assets.
Competitiveness and Track Record
The best crypto asset management platforms offer highly competitive services and have a track record of providing sustainable returns to clients. However, platforms that claim to have wild success rates are likely to be scams, and most asset management platforms typically have 10-15% yearly profit margins.
Summing Up
Crypto asset management platforms offer a great way for beginners and investors to channel their assets to optimize their capital. Crypto4Winners is one of the options in the market that offers crypto asset management services.
The platform offers three investment Pools: BTC, ETH, and USDT for different types of investors to leverage their assets. It is registered in Sweden and has partnered with hardware wallet platform Ledger to ensure the safety of users’ funds.