3 Reasons it’s better to invest with a crypto fund than by yourself
Going it alone can be fun and exciting. But at what cost?
Check the clock — it’s 2am. You’ve got work in the morning. The blue glow from your monitor makes your eyes burn. You’re waiting for a token sale to go live on the other side of the world.
The minute it comes online, thousands of other investors are going to try and send their cryptoassets to the same smart contract — trying to get their piece of this Initial Coin Offering (ICO), just like you.
Chances are, the sale will crash. Your transaction will get rejected. You were lucky to get this far — you heard about the project early enough to jump on the whitelist, and your hours of research shows it’ll probably do okay.
You plug in the sale address, dial in the gas price, and hit the button precisely as the sale comes online..!
Did you make it? Does it matter? You got in this time, but what about next time? How long can you keep this up? This is life as a solo crypto investor.
There’s a reason people call it ‘going down the rabbit hole’.
Things start out simply enough — but then you’re sitting on a telegram chat at 4am asking, with everyone else, why your ETH was rejected and returned.
There’s a reason why actively managed funds like Every Capital are coming on to the scene. We’ve been down the rabbit hole for years — and we think there’s a better option for everyday investors looking to diversify into cryptoassets.
1. Major investor benefits:
When you invest with Every Capital, you pool your investment with thousands of other investors too.
Because we have a big chunk of funds to work with, it opens up all sorts of benefits that individual investors don’t get access too.
We get better rates when we buy cryptoassets. If you buy $2500 worth of crypto on an exchange, you pay the retail price. If we buy in with $10 million of funds under management, we get the wholesale price — buying in bulk!
The crypto ecosystem as a whole is changing as well. A solo investor, who could jump on a sale 12 months ago with $10 or $10,000 and have a good chance of making a profit, doesn’t have the same opportunities they used to.
There’s a trend of bypassing ‘public sales’ in ICOs entirely. Even whitelisted community members don’t get to purchase tokens of a project they believe in.
It’s easier for a project, legally and financially, to just pick a handful of high net worth investors and take their investment, rather than processing thousands of individuals and small investor pools.
Many of those high net investors are crypto funds — like us — which get access to private sales and pre-sales and even bonus tokens for investing early.
It’s a shame, but the individual investor is usually second in the mind of big crypto projects these days.
2. Security:
Security is everything in crypto. If you’ve ever bought and used cryptoassets yourself, you know how important your private keys are.
Private keys are like the password which control all of the funds sitting in your wallet. When you ‘go down the rabbit hole’ of crypto, you become your own bank. There’s no one to recover your funds if you lose them.
You might cut corners to begin with, because you just invest a little. But you leave a trail, and as your investment grows, you might have trouble figuring out what holes you’ve left in your security.
A major ‘crypto influencer’ recently got taken for more than $2 million of his assets; a hacker compromised his old university email, reset some exchange passwords, and stole his funds.
To do it 100% right, you need to put in a lot of time and effort. A hardware wallet costs over $100, more than it costs to invest with us. You should probably set up a VPN, all new email accounts not linked to any existing identity — and plenty of other measures.
Because we hold so many funds, we are 100% incentivised to have the most cutting-edge security possible. Not only because we think it’s a great thing to do — but because, as a retail fund, the Australian regulators make sure we do.
We’ll dive into more detail in another post, but our cryptoassets are secured with multi-sig wallets, hardware wallets, randomised passwords, offline trading stations, VPNs, and specially secured third-party providers.
Unlike many everyday crypto investors, we only keep a minor amount of our funds on exchanges too. It only takes a quick google to see how many of those have been compromised in the history of crypto (hint: a lot).
3. Time and Peace of Mind:
Crypto is a crazy market. It never sleeps and it’s totally global.
If you want to buy shares on the ASX, it opens at 10am and closes at 5pm. If you go to sleep on crypto, the whole market could have tipped upside down.
12 months ago, things weren’t so bad. The everyday crypto investor could probably keep track of most of the major token sales, and keep up to date with news on the major coins and their movements.
Now, we’re averaging around 100 new ICOs every month. That’s at least three new projects a day. Each of those has a whitepaper, multiple social channels, news announcements, whitelists, bounty programs and more.
Even trying to keep up is like adding a stack of books to your bedside reading pile every night. And we know you haven’t kept up with that, either.
It’s our job to work through that reading pile. We spend everyday analysing new projects, reading whitepapers, researching markets, looking for red flags, interviewing teams, and finally making calls on investments.
Investing with an actively managed fund like Every Capital is effectively like hiring your own research team to keep up with Crypto for you.
That gives you peace of mind. It helps you out of the rabbit hole and gives you time for the things you need to do in life — whether that’s only reading about your favourite crypto projects, or walking the dog, or sleeping.
Every Capital is Australia’s only retail cryptoasset fund, launching soon.
Reserve your place on our waitlist now at www.every.capital