- Bitcoin is known to exhibit extreme volatility, and hence calls for a prudent hedging strategy
- KB Crypto combines human intelligence with its proprietary software to produce high yields
- The funds come with insurance cover, with weekly payout of returns to the stakeholders
For crypto enthusiasts, Bitcoin’s price fluctuations can make or break sentiments in the cryptoverse.
This year has been a rough ride for Bitcoin, with the largest cryptocurrency displaying extreme volatility. The wider cryptoverse is also mirroring more or less the same trend where prices can rise or fall by double-digit percentage within just a few hours of trading.
So, what can a Bitcoin enthusiast do during turbulent times? Should Bitcoin be left in the wallet in the hopes of raking in positive returns over the long-term?
This is where KB Crypto hedge fund comes in the picture as it can help investors tide over volatility. Here are five key benefits that KB Crypto offers:
1. Bitcoin and Canadians
The KB Crypto hedge fund is popular in Canada for a slew of reasons. As Canadians warmed up to cryptocurrencies, in the backdrop of events like the world’s first Bitcoin ETF listing on the Toronto Stock Exchange (TSX), many were caught off guard by erratic ups and downs in the crypto’s price.
Canadians looked for funds that could help them wade through the volatility and
KB Crypto was the answer.
2. Bitcoin hedging
Is there any possible solution to rid the cryptoverse of its unpredictability? Perhaps, a direct approach to this remains elusive, but an indirect approach might yield returns.
One of these approaches is putting Bitcoin funds to use in unrelated asset classes, for example, foreign currency, stock market indices, and precious metals. Here, KB Crypto can be the hedging strategist that no prudent investor will find easy to overlook. The fund uses the potential of other asset classes to produce returns for Bitcoin enthusiasts.
3. Team at work
Short-term investments in assets like indices and commodities like crude are made, with guidance from the fund’s proprietary software. Often referred to as high frequency trading (HFT), this strategy makes even more sense when the markets are operating with little predictability.
Source: Screen Grab KB Crypto PPT
4. Insurance and risk management
First, the fund has roped in only regulated brokers to undertake its hedging services. Being regulated makes the broker answerable to lapses, if any. Second, the funds have an insurance cover of up to US$1 million. Even though regular trading losses are not covered in this insurance, any abnormal instances causing losses are fully covered.
Risk is managed by steering clear of the ultra-volatile crypto market and by picking traditional assets like indices and commodities for high frequency trading.
5. Software and human intervention
The global market for variable-return assets is undergoing a paradigm shift, thanks to the use of technology in analysis and fund placement.
KB Crypto uses its proprietary software that identifies lucrative trades, which is further complemented by the expertise of fund managers. For example, the software might suggest commodities like crude oil for high frequency trading in the wake of an upcoming rise in the demand of crude. The investment is backed by due diligence performed by the team.
Risk Disclosure: Trading in cryptocurrencies involves high risks including the risk of losing some, or all, of your investment amount, and may not be suitable for all investors. Prices of cryptocurrencies are extremely volatile and may be affected by external factors such as financial, regulatory, or political events. The laws that apply to crypto products (and how a particular crypto product is regulated) may change. Before deciding to trade in financial instrument or cryptocurrencies you should be fully informed of the risks and costs associated with trading in the financial markets, carefully consider your investment objectives, level of experience, and risk appetite, and seek professional advice where needed. Kalkine Media cannot and does not represent or guarantee that any of the information/data available here is accurate, reliable, current, complete or appropriate for your needs. Kalkine Media will not accept liability for any loss or damage as a result of your trading or your reliance on the information shared on this website.