Managing hedge Fund and founder of the project “Investitii” Ivan Fangs of features of work with exchange offices, stock exchanges and on the legal instruments of exchange. From the investment funds is an expression. “If music is playing, you have to get up and go to dance”. Wish to buy bitcoins in the portfolio of the Fund appeared in the spring of 2017, when it became clear that the growth of cryptocurrencies are backed by stable religious demand from investors worldwide.
We wanted to understand how it all works. Typically, stock investors are not geeks and not cryptoanalyst. It is important the number of zeros after units in the Bank account, not the number of ones and zeros in the code. Therefore, they perceive cryptocurrency critically — as one of many available tools with their advantages and disadvantages.
It is possible to invest in oil Google stock, bonds, Guadeloupe or just a cryptocurrency. The idea of an asset that does not depend on the macroeconomic and financial statements, and clones of cryptocurrencies and computing power, is intriguing and looks revolutionary. This allows you to share the risks piatogo portfolio. Revenue and profitability of our portfolio, we also look forward to Fiat currencies.
What proportion of funds to invest in the cryptocurrency. To answer this question you need to evaluate the growth potential of the asset, and the potential loss. The share of positions in the portfolio should be such that even under a negative scenario, the losses the Fund has not been critical. The negative scenario when trading cryptocurrency — zeroing of two types: The risks are high.
Coins can be stolen or just “freeze” on the exchange. Managing with crypto-currency position in the portfolio needs to mentally say goodbye to the money. In accordance with the risk profile of the Fund we understand that can afford to lose in this experiment is not more than 3% of the portfolio. Exactly the same proportion and it was decided to allocate for investments in cryptocurrency assets.
To buy cryptocurrencies for Fiat money in several ways. However, it turned out that it is best to buy in large amounts (from $10 thousand and above) suitable for “classifieds” and offline transactions for cash. Heres FINTECH. You can try to buy through banks and transfer from card to card, but then no anonymity and the risk of falling under the definition of “suspicious transaction”. But anonymity is considered to be (considered) one of the key advantages of cryptocurrencies.
Now she is in the past. The most famous online — LocalBitcoins where you can buy bitcoins with cash or via Bank transfer. But it requires a proof of identity document (e.g. photo driving licence). It check, the data is stored. No anonymity.
The second disadvantage — spread, margin to the exchange price. At the entrance you will have to pay 4-10% of the amount invested, not counting Bank fees of about 1.5% (if the counterparty is another Bank). In the stock market such a fee is unacceptable. When transferring within the same Bank customers see the real name and the name of the counterparty — of the sender or recipient of the payment.
The transaction is not anonymous and in relation to “buyer-seller”. In this case, the transaction is with an unknown person, by the site administrator. Allowances to the rate of exchanges in cryptocurrency exchange offices ranging from 2% to 30%. Also set limits on transaction at a time can you buy cryptocurrency in the amount of 15 thousand rubles.
For the transfer Fiat money from the Bank card need to pay a Commission of 5-7%. Translation at exchange points can pass through “Yandex.Cash” to anonymous individuals. It is suitable to test the market, but not for large amounts — its expensive, inconvenient and risky. On the stock market exchange is responsible for the infrastructure and organisation of trading, and the broker — trading platform, technical support, customer service, the Deposit and withdrawal of money.
Cryptocurrency exchanges combine both functions. This is very similar to the previous activities of the Forex companies. Himself a market and the Comptroller. Most often, this “site”, opaque, and unaccountable organization.
Once this exchange may not open and will have nowhere to complain. Cryptocurrency exchanges are extremely centralized services that actively support the “decentralized world”. A funny paradox. On exchanges the best prices for buying and selling cryptocurrency (they can vary considerably between exchanges at different points in time, some build into their trading strategy).
Banks often refuse to send money to cryptocurrency exchange. To avoid problems, you can specify in the purpose of payment. “funds for trading in the Forex market”. This are loyal. Almost every exchange has its pitfalls (they can be identified in advance) and “skeletons in the closet” (they sooner or later found, but more difficult to forecasting).
You need to be prepared to risk. By default, exchange sets for new accounts, the limit of deposits is $1000-$2000 per month. If you want to extend these limits, you will have to pass the verification. Will need to provide a set of documents similar to the one that requires the usual brokers and banks. Passport data, personal photo, photo cards, utility bills and other things.
Access to the data will be employees of the exchange and potentially unlimited number of persons. Processing of documents may take from one month. Usually the account is opened in the name of a natural person (employee, Fund, company). Due to the uncertain status of bitcoin, few of the entities wants to seem in this thread.
First, who will create a comfortable and secure cryptocurrency platform for professional investors with big capital and integrates it with one of the banks will make a killing. The need for this service grows, and the niche is empty. Often investors prefer the convenience and clarity (its not, but they think they are) and buy a variety of securities or funds that are tied to bitcoin. So familiar, or is the only way to comply with company policy, if we are talking about investment firms.
One such tool is the American Fund GBTC, Bitcoin Investment Trust. But for a long time, the trust traded at a premium to net assets. Price of shares are not backed by the full extent of his assets. When you purchase one bitcoin in reality comes 0,66 BTC. It turns out that for bitcoin price in the $4000 you need to pay $6000.
The most convenient way of investing in bitcoin for the private investor could be the launch of the ETF cheap and easy exchange-traded Fund. Most people dont need the coins, they need to be able to participate in the growth (or decline) of the cryptocurrency market. However, while the Commission on securities and stock exchanges of the USA has rejected all initiatives to launch ETF.
The launch of the ETF and strengthening of bitcoin on wall Street would mean that this cryptocurrency will go money the worlds major investors — pension funds. To such the world is not ready yet. Send columns, corresponding to the requirements of the editorial Board, [email protected]