The cryptocurrency market continues to carry over the bearish trend from the past year, while showing some signs of recovery, now and then. The recent price trends haven’t helped much in building the investors’ confidence, which is a need of the hour at this time. However, these prevailing conditions don’t mean that there is no money to be made by playing the market.
In most of the cases, investments in cryptocurrency markets are not as organized as regular money markets, and those who are putting their funds into this mostly do it in an individual capacity and not through professional fund managers. All these factors have increased the risk factor associated with investments in the cryptocurrency segment for many, further impacting the participation of regular joes in the ecosystem.
One of the solutions to improve participation in cryptocurrency markets is by bringing in structure and the much-needed trust factor. Having these in place will not only promote the use of cryptocurrencies but also presents the potential to turn the tables and push the ecosystem from being bearish to bullish. In order to bring structure, there is a need for establishing fund houses, professional trading desks, and investment advisory/management services.
Changing Landscape in the Crypto Industry
Gone are the early days, when there was no proper platform for one to purchase or trade cryptocurrencies. In the absence of multiple options, people were forced to use any one of the very few platforms that enabled such trades, like Mt Gox, which didn’t end well. However, learning from past experiences and the increased awareness, as well as the adoption of digital currencies, have given rise to a lot of different platforms, some of them even licensed and regulated by governments. These changes have not only improved the engagement among cryptocurrency users with ease of access but also reduced apprehension among new cryptocurrency community members.
Further contributing to the situation is the launch of ETFs on reputed exchanges, which has opened doors to crypto for traditional investors who are used to playing on regulated stock markets. However, these ETFs are traditional instruments that are linked to cryptocurrency market trends and the users don’t have direct exposure to cryptocurrencies. Meanwhile, the fees associated with the ETFs are generally at the higher end of the spectrum and focuses on a specific niche.
Creation of a Global Investment Fund
Along the lines, for those who need the best of both crypto and fiat worlds, there are a handful of investment funds that can meet these requirements. It can be safely said that this movement was kickstarted by Monpax which went on to create the first global-scale investment fund that specializes in cryptocurrency trading. And, as an investment fund, it has a highly trained investment team that understands the cryptocurrency market very well and are tasked with just one job – Find the best way to achieve significant returns to those invested in the fund.
According to the company’s report, the fund has made consistent monthly returns, even during the bearish market conditions. In addition to generating better returns to its investors through intelligent investments on their behalf, Monpax also offers other features that are consistent with those offered by cryptocurrencies, despite having a certain degree of centralization. The platform allows investors to contribute their bitcoins to the pool without having to go through a long-winded KYC process during the registration process. An interested investor on Monpax can register on the platform in no time and transfer the funds to their respective BTC wallets created during the process. Once the deposit is made, Monpax acts as a crypto hedge fund where fund managers will handle the investments, saving investors the trouble of keeping track of the market movements or resorting to the use of trading bots to grow the investment. On top of that, the platform enables pseudonymous investments – a reason why people have so far been investing in crypto markets directly instead of relying on third parties.
When it comes to pricing, Monpax doesn’t charge any handling fees. Instead, it operates in an 80:20 ratio, where the investors get 80% of all the profits or losses made by their investment. However, so far, the company claims to offer returns anywhere between 8% to 15% on investments made and hopes to continue the trend. There is no minimum investment period and any withdrawals will be processed within 24 hours. Similarly, the minimum investment amount is set at 0.02 BTC, making it accessible to anyone who wants to get into the cryptocurrency market.
The Way Forward for Crypto
As per the available information and industry trends, crypto is here to stay. In fact, cryptocurrencies are increasingly becoming mainstream with governments taking notice of the developments and coming up with regulatory frameworks on par with traditional finance. Now, the new financial product offerings from various players combined with practical applications of cryptocurrency’s underlying blockchain technology make the whole segment very hard to ignore. Cryptocurrencies will soon become part of the conventional economic system, and those who have entered early could have an advantage over others who will adopt in the later stages.