Investing directly in cryptocurrencies can be challenging for most conventional investors because of their complexity, liquidity challenges, and volatility risk.
The cryptocurrency market is a volatile beast. The digital token price rollercoaster has recently seen Bitcoin fall from grace and then rebound almost immediately. This volatility is the result of market manipulation, companies going bankrupt and investors getting hacked. But it’s also exactly what makes crypto so appealing for investors looking for high returns. Investing directly in cryptocurrencies can be challenging for most conventional investors because of their complexity, liquidity challenges, and volatility risk. This is exactly what Heru Finance, a crypto asset management firm wants to address.
This content is exclusive for our subscribers.
Subscribe to get unlimited access to The Indian Express exclusive and premium stories.
Crypto asset management is typically offered as a full or partial services solution that allows investors to gain access to blockchain or crypto assets through various routes. These services can be provided either directly by crypto asset management firms themselves or via a third-party service provider. These firms are responsible for selecting appropriate crypto assets for their client’s portfolios, tracking and auditing the performance of these assets, helping new investors navigate and understand the crypto space, and providing general support as needed. Traditionally, investors have to manually track and audit their own holdings, meaning they have to stay on top of changes in portfolio composition, performance, and holdings.
“Crypto asset management firms can help both new and experienced investors navigate and understand the crypto space. It helps investors gain exposure to this new asset class through the use of various investment strategies such as passive or actively managed funds, baskets, and other investment products. For experienced investors, it provides a wide range of useful services, including portfolio rebalancing, tax reporting, and other crucial functions that may not be as easily managed by DIY investors,” said Prashant Malik, founder and CEO of Heru Finance, who is widely recognised as the inventor of Cassandra, the distributed database used by Netflix, Meta and several global enterprises.
One of the most important functions that crypto asset management firms provide is tracking and auditing the holdings in clients’ portfolios. Tracking the holdings in a portfolio can help investors understand how their investments are performing. Another important function that crypto asset management firms provide is asset preservation. Crypto assets are designed to be stored on the blockchain, meaning that they are not held or stored by any one single entity or company. Asset preservation refers to the process of ensuring that crypto assets are properly backed up and maintained in an effort to protect them against theft or other unforeseen circumstances. “At Heru Finance, we have taken $20 million worth of crypto insurance, to ensure that even if any hack occurs we will be able to reimburse our investors,” notes Malik.
Diversification is one of the most important concepts in investing. It refers to the process of spreading risk across different types of investments such that no single investment poses a large risk to the portfolio’s overall health. Crypto asset management firms can help investors diversify their portfolios by including crypto assets in client portfolios that provide a certain level of diversification. “… and this is exactly what we do to ensure that our investors are profitable,” Malik says.
The platform boasts a strong technology stack including a robo-advisory that profiles every investor and matches them to a unique set of investment strategies. The investment team also uses HQS (Heru Quant Stack) which processes data points from search, social, meta, and content platforms and converts them into actionable trading decisions. There are other tech solutions that the team are working upon and plan to make live shortly. The platform provides exclusive investment opportunities in hand-picked blockchain and web 3.0 companies who can provide strong returns.
However, it should be noted that crypto asset management firms do not guarantee any fixed returns. “It is important to choose the right asset management firm and do an extensive research before investing your hard-earned money,” adds Malik.
© IE Online Media Services Pvt Ltd
First published on: 23-09-2022 at 05:44:33 pm