Well hedge funds is any private limited company that aims on using their investor's money to generate a net profit through many markets such as stock markets etc.. Generally they want to generate profit and that too at a very fast rate .. using an aggressive approach they employe hedge funds managers.. that do take 2% of the gross profit... Also the investment thats made isn't a 1000$ or 2000$ they usually invest as much as they can get to increase their chances of generating profit.
Using hedge funds in cryptocurrency could lead to destability in the crypto market.
Since their approach is aggressive they don't care about the market they are investing in they just want to make some quick money.. investing so much amount suddenly and then taking them out as per their convinence could throw the market in shackles and if they thought about doing it when the market is down .. god you can imagine what can happen!
I think its not beneficial for the cryptocurrency market as a whole .
Topic: What do you think about crypto hedge funds? (Read 323 times)
very profitable for devidens, there is nothing wrong about this all. nice invest with method calculate time and profit growth.
Any medicore fund group with good experience in fiat wouldn't be that bad if they are passionate in crypto as this niche economy would soon operate like regular stock/Forex exchange, there is no way a crypto hedge fund wouldn't sustain in this booming/moving market. Dividend based project such as taas, coss, black moon, kolcoin are similar result like any hedge funds, just they are public and those report in wallstreet are more private and well funded
What do you think about crypto hedge funds?
Sounds like another 3rd party which contains extra risk for your money. If you think the hedge fund can invest better than yourself then ok but you have to take some % off the investment for the risk you take by giving them your money. Barry silbert does a great job taking the super rich's money in return for simple investment in BTC or ETC.
crypto hedge funds are doing quite okay, you might have heard of TAAS or BlackMoon, both of them offer awesome products and quarter dividens. So by buying their coins, you are entitled to about 50% of the funds profits (in TAAS case) and 25% of are re-invested in the token itself, which increases it's Net Asset Value. BlackMoon offers more variety, like choosing different products depedning on your risk tolerance, both are quite cool IMO
What do you think about crypto hedge funds?
They have their own place but a majority of the time I think they're mediocre at best when it comes to the fiat economy, and in the crypto economy they multiply the amount of risk they are taking on by many orders of magnitude. Considering that every single market within the crypto economy is incredibly volatile and often, at best, a profit-maker for a week or two before becoming a relic of the (recent) past, they have to be vigilant and active with the control over their assets, since situations can change rapidly.
What do you think about crypto hedge funds?
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