(Special note: as of November 2019, Crypto Funds were transformed into a new product - Crypto Strategies)
We are proud to be featured in the CriptoNoticias, the first and oldest (founded in early 2015) digital newspaper for the Spanish speaking community focused on news about Bitcoin, blockchain and crypto assets in general. They spoke to Tim M. Zagar, Co-Founder & CEO at ICONOMI. You can find the original interview in Spanish here.
What is a Crypto Fund? Please tell us about the idea.
Before ICONOMI came to life in 2016, many people were asking us: “Which cryptocurrencies should I buy, or would you do it for me?” That’s why we decided to give them what they needed – Crypto Funds managed by ICONOMI Experts – a product that helps people solve the problem of not having enough knowledge and time to invest in cryptocurrencies.
At this moment, we are also proud to announce that ICONOMI is the first company in the world that has enabled the creation of Crypto Funds for everyone. We like to say “With Instagram, anyone can be a photographer. With Uber, anyone can be a taxi driver, and now with ICONOMI, anyone can create and manage their own Crypto Fund.
Why do you think Crypto Funds are necessary?
We believe that Crypto Funds are necessary for mass crypto adoption, not only for ICONOMI, but for the entire new economy that is on the rise. While ICONOMI is taking care of the complexity behind the technology, users can invest in or create their own Crypto Funds in just minutes.
On one hand, they are a great entry point for beginners, for those who would like to invest their money into cryptocurrencies, but are not sure where to begin. That is where Crypto Funds managed by ICONOMI Experts come in handy. ICONOMI Experts choose the cryptocurrencies and manage the funds depending on market conditions, while investors can sit back and track their investments anytime and anywhere.
On the other hand, we are also thinking about Crypto-savvy investors. For them to be able to create and manage their own Crypto Funds is a cherry on top of their investment journey. With ICONOMI Crypto Funds, they don’t need several exchange accounts anymore, they can manage 70+ cryptocurrencies through a single account at ICONOMI, and invite others to invest.
What is the approach that ICONOMI Experts are using to create and manage the funds? How do they determine their strategies?
The strategies behind the funds differ from one expert to another. Some choose to focus on different kinds of tokens, some simply go for the TOP 10 tokens, whereas others are more interested in complex algorithms. The best thing for investors is that they don’t have to worry about it. The Experts take care of the tricky parts, while ICONOMI handles the trading and keeping investors’ assets safe.
What do you do when there are abrupt price movements?
Everyone should be aware that the crypto market is volatile, and there are times when every investor faces challenges. Experienced investors will most likely identify potential market downturns and protect their investments from losses by allocating parts of their portfolios into stablecoins, which is something less knowledgeable investors are less likely to do.
That is why we are committed to equip everybody with at least basic investment knowledge, so that they can act accordingly when such abrupt price movements appear.
How do you manage the funds’ risks? Diversify other assets or through pure cryptocurrencies?
ICONOMI Experts take care of the risk management. They have a chance to add stable coins, such as Tether and TrueUSD, to their Crypto Funds. For example, each time market prices go up 30%, some of them choose to put 5% of their funds into stablecoins. As always, there are as many investment strategies as there are experts.
What percentage of diversification has been more effective at different times in the market?
Due to the volatility of the crypto market, there is no general rule about the percentage of the diversification. However, most of our Experts hold at least 10 cryptocurrencies. What we can say, based on the analytics of the past months, is that practically every week one of our Crypto Funds outperforms bitcoin and ether, proving that diversified investments are less risky and bring higher returns in the long run.
How long did it take to create the Crypto Fund platform and app? How does all this work? Tell us about the technical development.
The development of the ICONOMI platform started in 2016, and it has been running since 2017. Firstly, we introduced Crypto Funds managed by Experts, adding the possibility to buy leading cryptocurrencies such as bitcoin, ether, ripple,... Now, anyone can create their own Crypto Fund.
We offer our users the option to either invest in an existing Crypto Fund or create their own fund. We provide a simple and elegant user interface while relieving our users of the complexities that deal with trading, storage, pricing, etc., thereby providing a superb user experience. For the first time ever, creating a Crypto Fund only takes a few minutes.
Why did you choose BTC, ETH, and EUR as the currencies to make the deposits? Why not USD or other cryptos?
Crypto deposits are available in bitcoin and ether since they are the biggest and most accessible cryptocurrencies. EURO deposits were added because our biggest user base is in Europe. In the future, we are looking to add other currencies as well.
Any final thoughts for our readers?
At ICONOMI, diversification is key – when investing in Crypto Funds, you can invest in multiple cryptocurrencies with a single click. It saves you time and is less risky. Moreover, if you feel like an expert already, you can create your own Crypto Fund and invite your friends to invest. All you have to do is choose your favorite cryptocurrencies, make the first buy-in, and you are ready.
Previously, public opinion was shaped by the media, while today influencers have a much greater impact. We believe this will also change in the financial industry. Financial influencers, rather than financial institutions, will be the ones dictating the trends.
We are really glad to offer our services to citizens of 182 countries all around the globe. Moreover, it is great to see that there are more and more users from Latin America and Spain using ICONOMI.
Join us and let’s build the future together.