In the dynamic world of cryptocurrencies, navigating the highs and lows requires more than just luck—it demands strategic acumen and profound market insights. While crypto investments allure with promises of sky-high returns, volatility and complexities inherent in this space can easily overwhelm newcomers.
So, what’s the solution? One increasingly popular avenue is the access of crypto investments via collective investments and in this post, we show how the Gibraltar Experienced Investor Fund provides a viable alternative for both seasoned investors and newcomers alike.
What is an Experienced Investor Fund
An Experienced Investor Fund is a collective investment scheme regulated by the Gibraltar Financial Services Commission to be used exclusively by Experienced Investors as defined by the Financial Services (Experienced Investor Funds) Regulations 2012.
The regulations recognise Experienced Investors based on either their experience or by meeting certain minimum requirements such as the minimum investment made in the fund (being minimum EUR 100,000, or EUR 50,000 if professionally advised), or the net assets of a trust or company being, or self-certification by the investor that he has a net worth of at least EUR 1,000,000.
Mitigating Risk
Cryptocurrency markets are notorious for their volatility, capable of experiencing monumental price swings within minutes. For investors who have little experience with crypto currencies but who want to include this in their portfolios, this volatility can spell disaster. However, by entrusting funds to an Experienced Investor Fund, investors can mitigate risk through prudent portfolio diversification, risk hedging strategies, and disciplined trading practices.
Harnessing Wisdom and Expertise
Experienced Investor Funds are required to have two licensed EIF Directors, a permissioned fund administrator and undertake an annual audit. These counterparties offer a wealth of experience, battle scars from past market cycles, and a refined understanding of risk management. By pooling funds in an Experienced Investor Fund, newcomers gain access to invaluable insights and strategies honed over years of navigating the financial markets.
Building Trust and Credibility
In a space rife with scams and fraudulent schemes, aligning with reputable counterparties can instil trust and credibility. By associating with established names in the industry, newcomers signal to the market that their investments are backed by wisdom and prudence, thus attracting more opportunities and partnerships.
Final Thoughts
In the fast-paced and often bewildering world of cryptocurrencies, accessing the sector through experienced investor funds provides diversification in terms of risk, experience and counterparties. By tapping into the wisdom, expertise, and resources of seasoned professionals, newcomers can navigate the turbulent waters of crypto investing with greater confidence and resilience.
Remember, in the ever-evolving landscape of crypto, knowledge is power, and aligning with experienced hands can be the key to unlocking a world of opportunities. So, whether you’re a seasoned fund manager looking to diversify your portfolio or a newcomer seeking guidance, consider the immense benefits of calling on us before you launch your crypto journey.
About Fidux
We’ve spent more than three decades managing and protecting our clients’ assets. We do it with a multidisciplinary, multilingual team of top experts, based across Europe. Our approach is proactive, professional and efficient as well as steadfast and dependable. We create funds and investment structures, build portfolios, start businesses – whatever helps you achieve your financial goals, we have the expertise and network of trusted partners to get you there. Here is how Fidux can help.
For further information or assistance, please contact a member of the Fidux team.