The Freedom Coin vs Hedge Fund
The Freedom Coin (TFC) is a cryptocurrency with a working blockchain. Added to its range of products is a trading product that generates returns for investors. The The Freedom Coin Fund has a pool of Bitcoin (BTC) that is actively traded to generate returns. This pool of funds is owned by The Freedom Coin itself and locked to generate profits. The BTC is used to buy and sell other cryptocurrencies to generate profits. To qualify for these benefits, investors have to buy a shared unit of a complete masternode server. This is a dedicated computer that maintains the The Freedom Coin network. As cryptocurrencies are a cutting edge technology, a lot of the product offering does not fit into traditional trading and investment models. In this article we will look to contrast the The Freedom Coin trading product to a traditional hedge fund.
What is a Hedge Fund?
Hedge funds are alternative investment structures of the financial world. They are not as regulated as other investment schemes. Therefore, hedge fund investments are only usually available to verified investors. They have a pooled fund that is actively traded in local and international markets to give a positive return. It is worth noting that these funds are loaned from the investors or sometimes from other credit institutions. A hedge fund manager determines where and how the funds are traded.
How does The Freedom Coin differ from a hedge fund?
The Freedom Coin is quite different to a hedge fund in a number of ways. We will compare the two entities using a number of defining factors.
How Often Are Returns Paid?
The Freedom Coin pays monthly network support fees to Masternode holders in Bitcoin (BTC) while a hedge fund only pays out annual or biannual returns in a specific fiat currency.
Does The Freedom Coin Charge Incentive fees?
The Freedom Coin does not charge any incentive fees while a hedge fund charges about 20% incentive fees.
How Is A Hedge fund managed?
A hedge fund is fully managed by the Hedge Fund Manager. This is different to The Freedom Coin where 60% is managed by traders (Future Traders will be selected by the community through the voting and governance system) and AI trading bots. A further 40% is managed by the community through a decentralised voting system.
Is The Freedom Coin A Currency?
Unlike a hedge fund, The Freedom Coin can be used as a payment method. It is a fully-fledged cryptocurrency which is a digital asset that can be traded and transfer ownership from one person to another.
How are Investment choices made?
The Freedom Coin can invest in anything and investments approved by the governance voting system while a hedge fund can only invest in investments that are decided by Hedge Fund Manager
Does The Freedom Coin make any loans to acquire trading funds?
The Freedom Coin will never borrow money. All funds in the trading pool are owned by the The Freedom Coin Fund but hedge funds can often borrow money from institutions to amplify their returns.
Does The Freedom Coin charge any management fees to trade?
The Freedom Coin has a 0% Asset Management Fee while a hedge fund typically charges a 2% Asset Management Fee.
Are Investors tied into any minimum investment period?
With The Freedom Coin investors are not tied down to a minimum investment period. Coins, Shared Nodes and Masternodes can be sold at anytime while a hedge fund typically requires investors to lock up money for a fixed period.
How Often Do Investors Receive Fund Updates?
The Freedom Coin has real-time, full transparency through a website portal. User can login and view the live trades while a hedge funds only releases fund performance reports annually or biannually.
Is there a fixed Return on investment?
No. As with hedge funds there is no set return on investment. Masternodes generate additional rewards in coins, thus generating a higher return on investment (ROI) and more investment. A hedge fund does not generate more shares in the hedge fund but only financial gains on the initial investment.
The Freedom Coin does not fit into the traditional financial model. It is a cryptocurrency that defies traditional financial models. It is both a currency and a trading fund. Investors in The Freedom Coin have the opportunity to share in the The Freedom Coin Fund profits when they buy units or full masternodes.
The Freedom Coin: http://freedom-coin.io