Landing on the platform with over 30 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 looks 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
- The investment strategy
- Assets Following Strategy
- Experiences of the Crypto Strategy Expert
- Fee structure
Now let’s break them down one by one and show you where on the platform you can find this information.
Returns are very important 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 in comparison to other ones. Otherwise, the logic is simple, the greater the return, the better!
Every strategy on the ICONOMI platform has a description where the Crypto Strategy Expert describes their investment strategy. Usually, they state what kind of assets they will be investing in, how often they will change positions, etc. This short description can usually give you a good idea of what the strategy is all about.
Assets Following Strategy
Assets Following Strategy, or ‘AFS,’ tell you how much money is invested in the Crypto Strategy. Is more invested capital better or worse? Well, it depends, sometimes more assets mean greater credibility, while on the other hand, it can mean that the strategy is not that agile when changing the positions, and can take longer to change its structure.
Experiences of an Expert
You can read about the experience of Crypto Strategy Experts in the ‘Descriptions’ tab, where you can learn more about their past work, involvement in the crypto space, and experience with investments. Trust us, they are all true experts and their past experience is impressive, indeed!
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 Expert for their work. When it comes to the fees, let us also point out that there are two types of fees, a yearly management fee, and a following fee. You can read more about them here.
Why not try it out, and see in practice what you’ve learned?
We hope this gives you a better understanding of what to look for when picking a Crypto Strategy for your investment. Oh, and one more thing – if you are an advanced user with deeper financial knowledge, we also have a bit more sophisticated indicators like Max drawdown and volatility, with more to come. Look for your favorite Crypto Strategy today.