What’s up, everyone? We’re kicking off the weekend by answering this question: What is a crypto fund?
If you want to know my thoughts on crypto funds or you are looking to start/scale your own crypto fund, then this article and video are for you!
How Big is Cryptocurrency?
There are 12,000 different types of cryptocurrencies right now. Their market cap is valued at $837 billion.
Bitcoin’s market cap is currently $322 billion.
Just to put it into perspective, Gold’s market cap is $11 trillion!
Gold is great because it’s tangible, but it no longer backs up the dollar like it used to…
Crypto vs Gold
Many people will have gold or cryptocurrency in their portfolios in case the USD debases. They use them as a “hedge.”
“In my opinion, I’m more for crypto than gold because of the transactional use.”
Yes, gold has value. However, if you want to buy a candy bar at Chevron today, you can use bitcoin through PayPal, but you can’t use gold.
So, what is a crypto fund?
A fund, as you know, is a pool of investor’s money that is managed and allocated by the fund manager/GP.
Instead of putting the capital in real estate or stocks, the GP will invest in crypto.
All great traders eventually start their own funds.
If you’re successfully trading $20K right now, think of what you could do with $200M! That’s what a fund allows you to do.
Some traders sign up for Token Box.
You sign up and trade, but Token Box collects their fees, and you have no way of scaling. This is not a fund.
If you start a crypto fund, you will be able to scale and you won’t be paying fees to someone!
You might think cryptocurrency is all a scam, but in reality, its utility is increasing.
The only thing stopping crypto is the government. They could ultimately shut it down.
I hope you learned a bit about cryptocurrency and crypto funds!
That’s it for today!
Want to get direct guidance for your fund? Schedule a time with my Fund Advisors!
DISCLAIMER: This content is for educational and informational purposes only. It is not to be taken as tax, financial, or legal advice. You should always consult a legal professional before taking action. Furthermore, this is not a recommendation to buy or sell any security. The content is solely just the opinion of the authors.