CryptoCurrency
Cryptocurrency is a virtual currency secured through one-way cryptography. It appears on a distributed ledger called a blockchain that's transparent and shared among all users in a permanent and verifiable way that's nearly impossible to fake or hack into. The original intent of cryptocurrency was to allow online payments to be made directly from one party to another without the need for a central third-party intermediary like a bank. However, with the introduction of smart contracts, non-fungible tokens, stablecoins, and other innovations, additional uses and capabilities for cryptocurrency are rapidly evolving. Cryptocurrencies are not FDIC insured and are not protected by SIPC or CFTC regulations.
Bitcoin
Bitcoin, the most well-known cryptocurrency, allows for direct peer-to-peer exchange of value on a decentralized payment network.
Ether (ETH)
Ether is a cryptocurrency that is native to the Ethereum blockchain and network. The Ethereum blockchain allows users to create programmable "smart contracts" which execute only after certain conditions are met between two or more parties.
Cryptocurrency's value stems from a combination of scarcity and the perception that it is a store of value, an anonymous means of payment, or a hedge against inflation. Cryptocurrency investors can buy or sell them directly in a spot market, or they can invest indirectly in a futures market or by using investment products that provide cryptocurrency exposure.
For investors interested in cryptocurrency, Defi Capital Assets has several choices for gaining exposure to cryptocurrency markets, though spot trading of cryptocurrency is not currently available.
CryptoCurrency Trading
Defi Capital Assets manages cryptocurrency hedge funds, the first cryptocurrency fund of funds, and Defi Capital Assets Funds, which directly invests in crypto assets. Defi Capital Assets manages a strategically selected bundle of 5 of the more than 700 crypto hedge funds for its investors, including gaining access to exclusive, closed funds and $M-minimum funds. As such, Defi Capital Assets is uniquely positioned to understand the active management strategies and managers in crypto currency. Defi Capital Assets Opportunistic is a direct investment vehicle into crypto that leverages this diligence by making specific investments and focusing on specific styles that Defi Capital Assets believes may return favorably.
Trading & Mining
CryptoCurrency Strategies
Cryptocurrencies carry inherent value, and this has made them legitimate financial assets that can be bought and sold for profit. Based on this, cryptocurrency trading is the buying and selling of various coins or tokens with the aim of generating a profit. Investors can trade various cryptocurrencies via a crypto exchange or a CFD brokerage firm, such as Defi Capital Assets.
When you trade via an exchange, you will need to create an exchange account as well as open a crypto wallet where you will be storing your coins. With an exchange, you own actual coins in digital form and must store them securely. You will generate a profit when the value of the underlying coin you are holding increases and you sell the coins at a higher price than that which you had initially bought for. If you sell at a price lower than the buying price, you incur losses.
Cryptocurrencies are handled like cash but are mined like . The work of a crypto-miner is simply to ‘mine’ or ‘mint’ new cryptocurrencies. They do this by confirming transactions on the blockchain or the public ledger. This means that mining is simply the process of verifying crypto transactions.
People around the world transfer cryptocurrencies from wallet to wallet, with miners using computer-processing power to confirm and add the transactions on the public ledger. Once a transaction has been completed and recorded on the blockchain, it cannot be reversed. For this work, miners receive new coins as their compensation- and this is how new cryptocurrencies are generated.
We suggest that clients who are interested in cryptocurrency approach them as speculative investments and consider their goals as well as the risks involved. For those who already have a diversified portfolio and a long-term investment plan, we see cryptocurrency as being used primarily for trading purposes outside the traditional portfolio.
Factors that Influence
- Supply and Demand - As with every financial asset in any market, the prices of cryptocurrencies are heavily influenced by the forces of supply and demand.
- Regulation - Regulation covers political and legal issues surrounding cryptocurrencies in various jurisdictions
- Utility - Every cryptocurrency has a use case. For instance, Bitcoin aims to be peer-to-peer digital money, whereas Ripple seeks to enhance cheap, borderless cash transfers.
- Exchange Listing - This particularly applies to altcoins. Getting listed on any of the major crypto exchanges is a massive vote of confidence for any underlying cryptocurrency project.
- News and Media - Media coverage of any underlying cryptocurrency greatly impacts its pricing. Positive media coverage can attract investors to a crypto project and consequently inspire higher prices of the underlying coin, whereas negative media coverage can easily inspire fear among investors and trigger lower prices.
VALUE PROPOSITION
- Uncompromised Safety – Enjoy maximum safety and security by trading with a reliable and trustworthy broker regulated in various jurisdictions around the globe.
- Wealth of Trading Resources – Defi Capital Assets has numerous handy resources that can help investors get the most out of their trading activities
- Numerous Cryptocurrencies – Choose from a wide selection of crypto coins and tokens to trade directly through our platforms.
- Crypto Never Sleeps –Crypto markets never sleep, and neither does Defi Capital Assets. We offer round-the-clock service and support in multiple languages.
- Synergistic Ares platform with a well-informed global view, access to relationships and operational benefits
- Stable and growing income and/or capital appreciation from investments
- Disciplined growth with a focus on long-term value creation and capital preservation