Landing on the platform with multiple Crypto Strategies can be quite a challenge for beginner investors. There are graphs, a lot of numbers, new terminology, names of cryptocurrencies that you are not familiar with, and if you don’t know what to look for, it’s easy to feel overwhelmed. But hey, don’t worry! It’s not as complex as it seems at first, and we’ve got you covered!
In short, the most important things to consider are the same things that people look for in traditional finance. Below you can find a list of the most common factors investors take into account.
- Returns/performance of the Crypto Strategy
- Assets Copying Strategy (ACS)
- Posts
- Fee structure
Now let’s break them down one by one and show you where you can find this information on the platform.
Returns are significant since they show you the past performance of a Crypto Strategy. Although past performance is not a guarantee for future performance, this can be a useful indicator since it can give you a good idea of a Strategy’s performance compared to other ones. Otherwise, the logic is simple, the greater the return, the better!
Assets Copying Strategy, or ‘ACS,’ tell you how much money is invested in the Crypto Strategy. Is more invested capital better or worse? It depends. Sometimes more assets mean greater credibility, while on the other hand, it can mean that the Strategy is not that agile with changing positions and can take longer to change its structure.
You can read posts written by Manager in the News feed. where you can learn more about their daily impressions of the market, involvement in the crypto space, and experience with investments.
Last but not least, make sure to check the fee structure of the Strategy, so you will know how much you will be paying the Manager for their work. When it comes to the fees, let us also point out that there are three types of fees - "Copy fee", "Performance fee" and "Exit cost". You can read more about them here.
We hope this gives you a better understanding of what to look for when picking a Crypto Strategy for your investment. Look for your favorite Crypto Strategy today.