Bitcoin Trading and Fund
In the fast paced world of bitcoin and cryptocurrencies, people have been asking why they cant invest in the digital coin market like they would with stocks, bonds, forex, etc. Well now they can! We have partnered up with a group of algorithm developers, financial traders and all round nice guys offering a fantastic fund.
If this is something that is of interest to you, read on and/ or contact us for information on how to get involved.
As we know, cryptocurrency is a digital asset designed to work as a medium of exchange using cryptography to secure transactions. Bitcoin was created in 2009 as the first decentralized cryptocurrency. Since then, other cryptocurrencies with different characteristics (Ethereum, Ripple, Litecoin and others) have also emerged.
Valued at 1 USD in February 2013, Bitcoin reached an all time high value of 4800 USD in August 2017, at the same time that the cryptocurrency market capital reached 135 billion USD.
Nowadays Bitcoin and other cryptocurrencies are traded at several web platforms and exchanges. Each of the platforms has its own registration process, fee schedule, user interface and trading limitations, making the whole ecosystem not easily accessible for every investor. This fund provides an easy access solution for investors looking to profit from this emerging market.
Who are we
We are an investment fund that trades cryptocurrencies and cryptocurrency derivatives. Most of its trading is automated by the use of trading bots (algorithms that use financial forecasting models, machine learning and statistical analysis to execute trades), connecting between many of the existing web platforms and exchanges.
Investor Profile and Fund Objective
The typical investor for the fund is confident on the long term return of holding Bitcoin, and is looking to outperform this return by reinvesting his Bitcoin holdings into different investment vehicles inside the cryptocurrency ecosystem. The fund reference currency is Bitcoin and will not seek to speculate on the Bitcoin to USD relation.
To achieve its goal, the fund uses both traditional analysis and advanced trading bots to recognize profitable trading opportunities depending on the market conditions and risk levels.
The fund proposes 3 investment tracks. Each track has unique characteristics, expected returns and level of risk.
Funds can be split among the different tracks. Redistribution of the funds across tracks can be adjusted on a weekly basis. The weekly gain/loss will be computed and added to the investor’s account at the end of each week as explained later in this document.
Track 1: Lending
Many of the cryptocurrency exchanges offer peer to peer Bitcoin lending. The lending rates are highly volatile, vary between markets and are dependant on real time supply and demand. The fund uses high speed algorithms to screen the different markets in order to split, distribute and lend the investor’s holdings at optimized rates.
Usual optimized rates for weekly lendings vary between 0.2% and 0.6% (i.e. annual return between 11% and 37% using weekly compound). Maximum forecasted returns on this track are considered to be low when compared to other tracks, and are correspondent to the low risk nature of this investment vehicle.
Track 2: Alternative Coins
There are several other coins besides Bitcoin called Altcoins (alternative coins). Some of the most popular ones are Ethereum, Ripple and Litecoin. Alternative coins can be purchased and sold using Bitcoin, and their prices tend to vary with high volatility. Over the last year Altcoins have gained great popularity and value.
On this track, coins are selected to be bought and sold each week and an Altcoin portfolio is established. The coins are selected based on past performance, trends, user support and other indicators, looking to maximize probability of profit for the upcoming week.
Since the beginning of 2017 to date, the track has achieved the following weekly gain/loss percentage performance (blue bars). At the same time, the total accumulated assets evolution from a 1 Bitcoin investment at the beginning of 2017 is shown (green line). The fact that Altcoins had an unusual outstanding performance over the specific evaluation period should be mentioned.
Being a risky track, big gains and losses are possible. In Altcoin, yearly losses of 99% and yearly gains of more than 1000% are not unheard of.
Track 3: Algorithmic trading
Other than buying and holding assets (Bitcoin and Altcoins), a number of alternative trading operations can be performed at the cryptocurrency exchanges such as margin trading, margin lending, futures trading, arbitrage and others. The track uses advanced algorithms and models to recognize signals in order to open trading positions with positive probability of profit.
In contrast to the other investment tracks where only the appreciation of assets is translated into returns, profits can be made here on bear markets as well by opening short positions using leverage. On our experience, the dynamic of the cryptocurrency markets is characterized by steady bullish periods followed by strong and fast bearish corrections. This dynamic present and opportunity for profit.
Since the beginning of 2017 to date, the track has achieved the following weekly gain/loss percentage performance (blue bars). At the same time, the total accumulated assets evolution from a 1 Bitcoin investment at the beginning of 2017 is shown (green line).
The investor will be able to deposit and withdraw Bitcoins from the fund at will whenever their position is liquid. The minimum deposit or withdraw amount is 1 Bitcoin. The fees for funds deposits or withdrawals can be seen in the following table:
Deposit (min) – 1 BTC
Withdraw (min) – 1 BTC
Deposit – 0%
Withdraw – 2%
The fund management will take 20% of the weekly profits. In case of no profit, no fee will be charged. Also, no fees on weekly profits will apply in case the investor’s account is below 80% of the total deposited funds.
Deposits, withdrawals and funds redistribution logistics
In order to join the fund the investor first opens an account by contacting the fund management. The investor then sends Bitcoin to the unique Bitcoin address that is provided to him. Once the Bitcoins are credited the investor determines his preferred funds distribution across the investment tracks.
At the beginning of each week (Monday 08:00 GMT), the previous week gain/loss of each investment track is calculated and the profits/losses are accredited to the investor’s account. In case of profit a commission applies and is automatically deducted from the investor’s account. A report containing the previous week results is sent to the investor by email each week.
In case no redistribution or withdraw was requested by the investor, the funds are automatically reinvested. In case a redistribution request was made, funds are redistributed after profit/loss calculation and before reinvesting. In case a withdraw request was made, funds become liquid after profit/loss calculation and the fund management contact the investor to proceed with the Bitcoin withdrawal.
Cryptocurrencies are a highly volatile, not regulated market. The fund is not responsible for the hack, theft or loss of funds at the exchanges and platforms its algorithms use for trading cryptocurrencies.
It is the investor’s responsibility to determine what, if any, taxes apply to his transactions, and it is the investor responsibility to collect, report and remit the correct tax to the appropriate tax authority. Since the fund operates with digital currency only, we do not charge or collect any kind of taxation. We recommend the investor to check the taxation implications of converting bitcoin to USD dollars or other currency given the case.