WHY IS IT GOOD WHEN THE MARKET FALLS AND YOU PICK UP CHEAP BTC, LTC, ETH AND SWAP THEM FOR SMARTER THAN CRYPTO (STC) tokens
SMARTER THAN CRYPTO is the world’s first cryptocurrency-only SMARTER THAN BETA tokenized portfolio, that will autonomously maintain a diverse portfolio of up to the top 20 cryptocurrencies by market capitalization. SMARTER THAN CRYPTO behaves like an actively managed ETF.
The SMARTER THAN BETA strategy developed by the institutional investment manager Salus Alpha Capital can outperform any index in any asset class by 40% more return and 40% less risk.
When investors sign up on the web page
www.smarterthancrypto.com they are allowed to send their contributions in BTC, LTC, ETH. Since SMARTER THAN CRYPTO is a portfolio of coins it means that with each contribution the average entry price of BTC, LTC, ETH is changing. So if the market continues to fall and new contributions come in, the average entry price for BTC, LTC, ETH in the SMARTER THAN CRYPTO portfolio is going down as well. Therefore an investor that invested early is profiting from a falling market due to the contributions of other investors since the average entry price of BTC, LTC, ETH that SMARTER THAN CRYPTO is holding is decreasing.
Example:
https://cdn-images-1.medium.com/max/800/1*xxoVGLFpr97anakwCCWhZw.pngSo in above example the investor who bought ETH at 1111.78 USD and contributed 1.258 ETH to SMARTER THAN CRYPTO (STC) token would have lost 229.31 USD per ETH but since there are continuous contributions, his average entry price is actually now 921.34 USD per ETH which is significantly better than his original entry price.
This is the beauty of a crowd sale over a longer period of time which produces a favorable entry price of the coins held in the SMARTER THAN CRYPTO portfolio before the portfolio is actively managed with the SMARTER THAN BETA strategy.
Since investors have different opinions about the market and are hardly right about picking bottoms it does make little sense in timing the contributions to SMARTER THAN CRYPTO token-as-a-portfolio since the dollar cost averaging effect will benefit investors in any case.
You can also read about dollar cost averaging here.
https://www.investopedia.com/terms/d/dollarcostaveraging.aspThanks!
Interesting concept but how is it decided which tokens or coins are actually represented by holding your crypto? Does that happen via voting or do you decide it?