If you have been following up on crypto news over the last couple of months, you probably know that the industry is snowballing, even though it is pretty new. So, getting in on the action can be the most profitable financial decision for any investor.
But it has not always been so. A few years back, decentralized finance or DeFi, the backbone of crypto, was more of a curiosity. People were not sure it would become the big deal it is today.
Now, with all the developments in the space, including Bitcoin futures ETF approval and the largest exchange in America going public, crypto is slowly but surely penetrating traditional finance. Before long, it will be a matter of either adjusting to the changing dynamics or getting left behind.
With that said, crypto investing is still not as easy for individuals and institutions. So, in this article, we look at the challenges of crypto investing and how you can actually overcome them with the help of a wealth management firm like Zerocap.
The Challenges Of Cryptocurrency Investing
With all the promise that cryptocurrency holds, why do people give up or shy away from investing?
The first and probably the biggest worry about crypto trading and investing, in general, is volatility. Unless you have a very high-risk tolerance, you will start to panic when your investment drops 20 or 30% in a week or even a day. Crypto is still quite risky.
But like anything high-risk, the potential rewards are also high. So, if you figure out how to reduce the risk (which we will cover in this article), you could be growing your portfolio several times faster with measures such as a crypto influencer agency, than someone who sticks to traditional assets alone.
The Possibility Of Being Defrauded
DeFi is a broad and ever-expanding industry. Currently, there are more than 12,000 cryptocurrencies. There are also numerous crypto exchanges, wallets, and ongoing projects. And much of it is not regulated. That means there is always the possibility of being defrauded or falling prey to rug pulls. And, if you do not know much about crypto, you can easily lose your investment.
The Learning Curve
Investing in cryptocurrency without a third party assisting you involves a lot of DIY. If you are a beginner or have moderate knowledge of crypto, you will need to familiarize yourself with many aspects of the industry.
And you will need to do your own research in terms of which crypto to buy, when to trade, and even which exchange to use when trading.
The Legal Concerns
While cryptocurrency is still not fully regulated, there are laws in place that you should follow when investing. For instance, crypto is still considered an asset by law and attracts capital gains taxes. Correctly investing in crypto will need you to keep up with some legal aspects.
These challenges are among the reasons there is a gap between crypto as an investment and traditional financial instruments. But there is a solution. Zerocap is a market-trusted private wealth firm for digital assets. It provides services that bridge the gap between the two, helping you enjoy the benefits of crypto investing while giving you the assurance of traditional finance.
What Can A Wealth Management Firm Like Zerocap Do For Crypto Investors?
Zerocap can help you manage and grow your cryptocurrency holdings effectively in many ways. Let us take a closer look.
Optimizing Your Risk-Reward
With cryptocurrency, like every other investment, you want the risk you take to pay off proportionately in the end, if not better. Zerocap understands this, and so it provides you with the best solutions to ensure that your risk yields fitting rewards.
Some of the company’s strategies to help you realize this includes offering better staking options, proprietary trading solutions, and deep liquidity to ensure that you take advantage of any emerging opportunities on time.
Easy Access To Funds & Portfolios Optimized For Performance
The last thing you want to do when it comes to investing in crypto is not spreading your risk. So, to keep you from the huge losses you could incur when things do not go as planned, Zerocap provides you with different funds and portfolios dedicated to minimizing the volatility that crypto is often associated with. Some of these include:
- The Zerocap Smart Beta Bitcoin Fund: This fund allows you to invest in the pioneer cryptocurrency, Bitcoin, without exposing yourself to the volatility of the asset. It balances your risk in a regulated unit trust.
- The Zerocap Bitcoin Trust: With this trust, you gain exposure to Bitcoin while enjoying industry-leading safety and insurance.
- Zerocap BTC ETH Yield: Want to invest in the world’s leading cryptocurrencies? This product allows you to invest in Bitcoin and Ether with earnings enhanced by a weekly yield component.
- Zerocap DeFi Index: Decentralized Finance (DeFi) is proving to be a sector that will change traditional finance. That’s why Zerocap has engineered this product to give you access to investments making huge moves in the space.
Hassle-Free With Crypto Trading
Trading cryptocurrency can undoubtedly be a challenging affair, more so if you are only getting into the sphere. Lucky for you, Zerocap has an excellent team of crypto experts ready to help you buy and sell your cryptocurrency seamlessly. Zerocap is especially handy when it comes to large orders that call for all due diligence.
Access To Custody & Storage Services For Your Crypto Holdings
Losing your cryptocurrency can prove to be a major blow to your wealth-building efforts. That is why Zerocap is dedicated to providing you with superior crypto custody and storage services to keep your crypto holdings safe.
Need Help Investing In Crypto Properly? Zerocap Links Crypto Investing & Traditional Finance
Cryptocurrency is a huge sector that has made many people wealthy and will continue to. Even so, it is vital to appreciate that you can only make decent gains from your cryptocurrency investments if you do things right.
So, what better way than to rely on the experts?
Zerocap has a competent team of investment experts ready to help you diversify your portfolio and tap into the wealth generated by cryptocurrency. Bridge your traditional wealth with crypto to enjoy the best of both worlds.