How to Participate in an Open Investment Fund
Crypto Trading Series (5 part series — PART 5)
It’s no secret that the crypto world is growing in leaps and bounds. It has already made lots of people rich. But is it a smooth ride all the way to the bank? Not at all, as rewarding as it can be, so are the risks. Furthermore, with the high volatility in the cryptocurrency markets, it can be tricky to keep track of the rewards.
As such, investing in cryptocurrency can be a daunting task. You need to stay up to date with upcoming projects as well as those that have been in existence. Also, you need to be on the lookout for “pump and dump” opportunities, not to mention scam projects.
As demanding as it is, and with so many things competing for your attention every day, you may not have hours on end to spend conducting proper research. And this is where open investment funds such as ICONOMI come into the spotlight!
So, what is an open investment fund?
An open investment fund is basically an investment vehicle for individuals who want to step into the world of cryptocurrency but lack time, skills and expertise to analyze and invest in the right cryptocurrency markets.
In other words, an open investment fund is capital of digital assets available for replication. And the crypto fund here is a bridge between the trader (who is creating the fund) and crypto enthusiasts who would be happy to invest in it.
That said, to grow your digital assets, you can invest in an open investment fund and let the experts do it for you in return for a share of your profits. To understand how it works, let’s dive in and explore the ICONOMI concept.
The ICONOMI concept
ICONOMI is simply a platform where you can invest in active or passive crypto funds. To build the platform ICONOMI conducted a successful ICO in October 2016 that raised about $10 million. This is equivalent to 85 million ICNs (tokens) that were distributed.
The ICONOMI fund pools common crypto currencies such as Bitcoin, Ethereum, Lisk and Golem.
Here, ICONOMI or a Digital Asset Array Manager (DAA manager) describes the composition of his fund and further explains his investment philosophy. If you are happy with the fund and you want to invest in it, you can then do so via the ICONOMI platform.
ICONOMI offers two different funds at the entry stage, namely; BLX (Columbus Capital Blockchain Index) and CCP (Columbus Capital Pinta). Let’s briefly have a look at each of them:
BLX
The BLX fund is passively managed. Since the fund is intended to cover the entire crypto economy, tokens accepted here must meet particular standards. One such condition is that the market capitalization of all digital assets taken up should correspond to more than 70 percent of the entire cryptocurrency market capitalization. In addition, all digital assets must be grounded on Blockchain technology.
Investing in BLX index can generate better returns than investing in stocks individually. Moreover, index funds run at a low cost and tend to show consistency. This makes them suitable for long-term investment.
CCP
The CCP fund on the other is actively managed. A team of experts (Columbus Capital Team) manages the fund. CCP has relatively higher returns when compared to BLX because investment is done in lucrative startups and ICOs. Capital utilized here is drawn from unused ICO assets. Therefore, if you hold or buy ICN tokens, you have spontaneously invested in the ICONOMI’s CCP fund.
How does it work?
First, you will need to register and sign up on the ICONOMI platform. Once you have signup, you can transfer up to five different crypto currencies. This includes; Ether, Bitcoin, ICN, CFI and BLX tokens. In the future fiat currencies such as Euro and USD might also be accepted.
On the platform you will see different DAAs you may choose to invest with. Presently, only the BLX fund that is managed by ICONOMI itself is accessible to investors.
So, what happens should you consider investing in the BLX fund?
In this scenario, let’s assume that you invest Ether worth $ 1000 in the BLX index, and you use it to buy a matching amount of ICN tokens.
The BLX index price is directly proportional to the present prices of crypto currencies. For instance, the index may currently constitute 15% Ether, 15% Bitcoin, 12% Dash, 8% Lisk, 5% Golem and many more.
If $1000 is invested in the BLX index, the amount will be distributed across the crypto currencies according to their shares. For example, $150 Ether, $150 Bitcoin and $120 Dash and many more are purchased and stored in cold wallets.
The other thing you will need to note here is the BLX token is one of the ERC-20 tokens. Therefore, it can be stored in hardware wallets, such as Trezor and LedgerS.
What is the ICN all about?
The ICN token plays a critical role. First, it is the medium of exchange on the ICONOMI platform. Secondly, it is a form of ownership for the ICONOMI Company.
Once you hold the ICN tokens, you are considered as one of the owners of ICONOMI. This means you can vote on issues regarding ICONOMI and you are entitled to receive dividends.
ICONOMI purchases the ICN tokens from the market with part of her profits and burns them. As the burning continues there will be less and lesser tokens in circulation, consequently resulting to an increase in demand and as well as prices of ICN tokens.
Conclusion
The cryptocurrency open investment funds are blossoming to be a real game-changer that would change the status quo in the investment industry. As we speak, if you are looking to multiply your digital assets, you can invest in an open investment fund and let the experts do it for you in return for a share of your profits.
ICONOMI offers active and passive investment vehicles that any investor can leverage on. You can also get rich investing in this ecosystem too. Try out the BLX index CCP fund and share your experience with us.
CRYPTO TRADING SERIES — PART 1: The Golden Rules of Cryptocurrency Trading
CRYPTO TRADING SERIES — PART 2: Best Places To Get Cryptocurrency Trading Ideas
CRYPTO TRADING SERIES — PART 3: 5 Top Crypto Trader Social Influencers
CRYPTO TRADING SERIES — PART 4: Top 5 Cryptocurrency Exchanges for Trading
