Cryptocurrency investments versus venture investments

When in the real economy an individual or a company has free money that they want to invest somewhere, so that the capital does not stand idle, but works and multiplies, wealth management services come to the aid of those who have never engaged in investments.

The market of cryptocurrency investments is actively developing, in terms of capitalization and the number of useful tools for the trader, it is still quite inferior to traditional investments, but its attractiveness is different: in high volatility, which provides especially successful and competent investors with the highest income, which is simply unrealistic to receive on investments in shares.

Let’s compare the advantages and disadvantages of two markets: a well-established venture and just starting to develop cryptocurrency. Let’s find out how investors’ approaches differ and understand the reasons for their preferences.

Predictability of venture investments

Venture investments are attractive primarily due to the fact that the market has been formed for a long time, it is well studied, there are long-proven and described strategies, players are offered a wide range of convenient tools for analysis and asset management.

There are hundreds and even thousands of books, training videos, workshops and master classes that talk about how to make money with venture capital investments. In addition, information that somehow helps to generate income from traditional investments has long been verified by thousands of traders.

It is this knowledge and stability that attracts people. However, the price of stability is a low level of income when compared with the yield of cryptocurrencies.

The attractiveness of a volatile cryptomarket

High profits are not possible in markets that are predictable and stable. High returns, as well as large losses, are possible only in markets characterized by high volatility.

If you turn on the TV channel with the analysis of securities markets, you can see how traders and analysts are struck by the figures of growth and decline, not exceeding five percent. If the shares of any company grow by five percent, it can give a huge increase in the portfolio in absolute terms — someone can earn several million dollars on this growth.

The rise of the dollar by two to three percent against other currencies can also significantly enrich some traders. The market of securities and fiat currencies rarely fluctuates strongly, everything is quite predictable, and changes do not go beyond a few percent of the asset value.

The cryptocurrency trading market is much more volatile. Let’s imagine a portfolio consisting of various cryptocurrencies with a total value of 100 thousand dollars. In the venture capital market, an asset of this value can yield one to two thousand dollars in profit with a fairly strong jump in price for this niche. In the crypto-currency market, such a portfolio can double in just a couple of days.

It is high volatility that attracts traders to the cryptocurrency market, because you can earn a lot in venture capital investments only with huge investments, and cryptocurrencies give a chance to enrich absolutely everyone without significant investments.

The BeeNode ecosystem makes investments affordable

Large investors still only occasionally decide to enter the cryptocurrency market for several reasons. The main thing is that compared to venture capital investments, cryptocurrencies are similar to the Wild West and too unpredictable. The market of digital assets lives by its own laws, which are not always similar to the usual for most traders.

For those who are not able to use profitable methods and effectively manage assets on their own, trust management services are common in the venture capital market. Almost 20% of all market assets are held in trust. In the cryptocurrency market, this figure is ten times lower.

Investment Fund BeeInvest aims to rectify the situation: the threshold of entering the investment market is significantly reduced. Everyone who wants to invest their money in cryptocurrency can do it without any difficulties. In the venture capital market, the profitability of the client does not always affect the profitability of the Fund: many management companies charge a fixed fee for their services, which means that they do not care much about the client’s profit.

Beeinvest investment Fund earns only when the client earns, because the return on the portfolio is divided equally between the Fund and the client. This means that the Fund is directly interested in making every effort to earn money.


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