While trading has become increasingly popular in recent years thanks to the advent of the internet, crypto trading continues to face multiple challenges that make it unappealing to investors. Many believe it’s as straightforward as buying stocks on Fidelity or ETrade, but there are many differences that set up a number of challenges. These challenges include risk of permanent loss, lack of pricing consistency, lack of security insurance or deposit, and exposure to “pump and dump” schemes, among others.
Crypto Asset Management
Crypto asset management tools are emerging with a clear incentive to capitalize on the cryptocurrency market, which is starting to stabilize. The fragmented environment coupled with the fact that less knowledgeable investors are starting to jump onboard is requiring a platform to deliver easier access. Because of the challenges that have arisen in the market, many are projecting that crypto asset management is the future, with market size anticipated to grow from 94 million in 2018 to 207 million in 2023, a 17.1% compound annual growth rate.
Purchasing cryptocurrencies is still more challenging than other equities, but as cryptocurrencies attract more attention, market participants are requiring straightforward tools to manage cryptocurrency portfolios. The notoriously complex process is proving to be an obstacle for many. With crypto asset management, users can consolidate their diverse holdings, making it easier to manage and to see returns.
Several funds offering crypto asset management that invest on behalf of their customers have already started to emerge, and the model is showing strong results. Bitwise Asset Management, for example, reported a 51% return in less than four months.
Complexity of the Market
Because of the complexity of the market, it will only succeed if new investors have access to resources to simplify the process and enhance their returns–making crypto asset management a lucrative business opportunity. In fact two crypto firms have merged to make crypto asset management easier: CoinVantage and Picks & Shovels. The result of this merger is an eight-person company, Interchange, that will serve an initial 100 clients. Many believe that this merger is representative of what to expect as we march ahead into 2019.
Flexi’s got you covered, even in complex marketplaces
A lot if changing in the accounting space as technology advances and cryptocurrencies stablize and become more commonplace. Fortunately, Flexi helps you handle even the most complex accounting scenarios. Learn more about Flexi today to start preparing for your future. Call 800-353-9492.