Topic: starting small crypto fund for close friends/coworkers etc (Read 476 times)

The main thing in this kind of stuff is trust, if they trust you enough then they can give you their funds to manage for them, but if they do not trust you, then there is nothing you can do about it, there is no way for you to woo them.

I think this will not be the best idea as far as coworkers are concerned.You can keep this Bitcoin for yourself till the time Bitcoin is not accepted by the international market and it gets legal. It is a very great idea for your own benefit and profit but you can’t rely on it as far as giving pay to your employees is concerned.

why not use an already established service? there are so many great funds out there that offer different products which you and your friends will definitely find usefull

All you should do is to gain their trust and make sure you manage their funds well so as not to run into problems with them or to lose their trust in you. It would be better to sign an agreement stating all the risks.

Your first concern is the security of your funds.  As long as you've warned them enough, I'm sure they'd be understanding about you losing money, but they wouldn't be the same about you actually losing the coins themselves.

You'd have to withdraw all the coins from exchanges and take them to wallets where you safely control the private keys.  Back them up multiple times and take other security measures.

After you have that handled, it's important you know your limits.  With crypto, most people who trade regularly lose money in the end unless they're whales.  My advice is to buy whatever things you think have potential and just hold them for a few years.

There is no conundrum. Do not do it.

Most people like the sound of it. They definitely don't have the balls to remain underwater and they'll almost certainly be lying when they assure you they don't care if they lose the money.

If it goes down it's your fault. If some third party like an exchange gets hacked and their money is lost it's your fault. If you move out of a coin that subsequently explodes it's your fault. Everything will be your fault.

People are so fucked up when it comes to money that getting involved with someone else's money is a guaranteed path to toxicity.

Even if you don't take their money and they follow your advice you'll still get blamed. You have absolutely nothing to gain by doing this and plenty to lose.

How would you feel about making them all some paper wallets (in a secure way ofc) and just giving that to them.
You can show that their coins are on that piece of paper and they can just keep it themselves.

That way, you don't have any responsibility if they lose it or whatever.

You can offer to help them with cashing out too.

I've had similar requests and I find myself in the same conundrum. In the past I've tried to show people how to set up trading on their own and typically after getting them going they are able to do it. They are happy to tip me but I feel that actually managing the money opens up a lot of problems both legal and for your relationships.

ha yea, i guess i worded this kind of poorly. I am always happy to help a friend out and discuss btc or anything crypto related if they are interested in learning, but taking on their money and doing my best to profit off an amount of money they are trusting me with is imo an entirely different beast all together. I only meant that I wasnt sure early on if I was prepared to handle the potential stress and other problems that may ensue with taking on such a task.

So, you are trying to make profits using the money of your friends? How can you say you're not sure if it worth your time? Your friends don't worth your time?  Sorry but it looks like you are trying to get your own benefit instead helping/educating your friends

I wish i had rich friends like you.
Anyway,i don`t think that you have to create a small cryptofund or to get some sort of license.
Just register accounts in the biggest and most trusted cryptocurrency exchange platforms and start trading.You could sign contracts with your friends that you are not responsible for any loss(so they can`t sue you ,if you lose their money).You should speak with some attorney about this.
If you don`t have experience with day trading and don`t have any trading skills,just don`t take the risk.

hey all,

at risk of getting flamed, hoping i can get some good advice for potentially starting a small pooled fund for investing/speculating in crypto. I've had a few friends get in touch with me (as i'm sure has happened to many of us) about the space and the crazy gains in the markets etc etc. Initially, I just kind of brushed them off because I knew it would be a nightmare explaining the particulars and wasn't sure if it was worth my time. I am now back to giving it some serious consideration and was hoping to get some questions from the community about how to go about it. While I'm sure ill get trolled anyway, lets assume for the sake of argument that everyone will be giving me money that they can afford to lose and understand very clearly the volatile nature of the crypto markets at this time. So while big gains may be possible, I've started nearly every discussion with trying to imprint very harshly into their minds to expect the most likely outcome to be losing their entire contribution (obviously this is mostly meaningless, but what can ya do!).

Anyway, I have no registered licenses or anything similar so just to clarify that from the beginning. I am merely looking to facilitate the requests for this small group of people while hopefully profiting for both myself and those involved. Looking to set this up the easiest way, while also being compliant with whatever regulations are in place. Thanks in advance for any contributions to this thread!