crypto-managed-investment-portfolio-services

Cryptocurrency Managed Investment Services

This article explains the benefits of a financial advisor partnership for your crypto investments. Managing crypto can be stressful, and mistakes can be detrimental for a portfolio. Coinbusters strives to provide cutting edge research and analysis for the individual and crypto managed accounts.

Three Types of Readers

At Coinbusters, our goal is educating our users, and introducing new readers to the world of crypto assets. We aim to teach the basics of self-custody, best practices, research approaches, and beyond. Many of our readers have expressed interest in the space but find difficulty taking the first step. We have taken these concerns to heart and have worked behind the scenes to provide a safe entry point to the gains and excitement crypto can provide.

Some of our readers prefer self-custody (type 1), while others prefer to keep their assets on centralized exchanges (type 2). We have noticed that a good portion of our users prefer the guidance of a licensed professional (type 3). We want our readers to get involved in the crypto and blockchain space, how each individual choses to do this is individualized. This writing focuses on the third type of reader, the reader who has an expressed interest in crypto, but simply feels more comfortable leaving it to the professionals.

The Risks of Self-Custody

Don’t get me wrong, myself and MoC self-custody most of our crypto assets. The road to learning how to safely navigate the crypto markets and nuances was a long one, we have each spent thousands of hours learning the hard way. We have both sent crypto to an incompatible blockchain address essentially burning the tokens from existence. We have sent crypto to the wrong address only to watch the recipient benefit from the appreciating assets we sent. Sending to the wrong address is one of the most common mistakes newer users face. Sometimes you can get your funds back, but most often, all the funds sent are lost.

Users can fall victim to phishing attempts when they believe they are connecting their crypto wallet to a reliable website. I have experienced this firsthand using the Binance smart chain during its infancy. I selected a trade and the website I had used for so many weeks told me that my funds were locked, and that I would need to “insert my secret phrase” to unlock my account. Thankfully, I was in the process of writing best practices articles and knew better than to ever give out this precious security phrase.

Many of our early supports have fallen victim to pump and dump schemes, honeypots, and downright scams with NFT collections. The purpose of these stories it not to scare away the potential crypto investor, but to emphasize how much time and expertise is required to really learn that best practices to live by. Much of my earlier writings emphasize how to not fall victim to these scams and mistakes that are all too common.

Crypto Managed Accounts

With the above in mind, I want to emphasize that we are crypto enthusiasts. We love to educate and spread knowledge about anything having to do with blockchain technology and crypto markets. With that said, MoC and Apollo are considered: Crypto Market Researchers or Analysts. Nothing directly on our website should ever be considered financial advice, for we are not financial advisors. Our website aims to educate, and assist in the research process, hopefully saving our readers some time for their own research. We strive to provide a unique approach to markets and building an investment thesis.

If you identify yourself as the third type of potential crypto investor, we believe our licensed financial advisor partnership is for you. A licensed financial advisor will sit down and have an in-depth discussion regarding risk appetite, and goals for the future. Really into crypto? You do not have to be all in, most investors have a solid distribution of asset categories. A financial advisor will assist in providing the best opportunities for each individual, tailored to their specific needs. This partnership is twofold, Coinbusters provides crypto market research and analysis as we have been. With our collaboration our partners use this data to assist in making informed decisions for our mutual clients. This exciting new offering is the first of its type ever to be offered here in America. Never before have licensed financial advisors been able to offer the exciting option of crypto exposure to clients!

Gemini

At this time, our partners will be using the Gemini exchange exclusively for crypto custody. We have an in depth writeup regarding how secure Gemini custody has become [here]. This is a very important part of the concept because Gemini ensures fund managers with the FDIC. Investors can rest easy knowing their assets are not only managed by a professional, but also held in cold storage (the safest option) by reliable custodians. Gemini leads the charge when it comes to custody of large volumes of crypto assets. Last year, Gemini surpassed 30 billion dollars in crypto under custody [1]. Information directly from the Gemini website is provided below.

Gemini Custody™ includes the following features and more:

  • Qualified Custodian — Gemini Trust Company, LLC is a New York trust company and Qualified Custodian chartered by the New York State Department of Financial Services (NYDFS) under Section 100 of the New York Banking Law, and subject to NYDFS capital reserve requirements.
  • SOC 1 — we are SOC 1 Type 2 compliant.
  • SOC 2 — we are SOC 2 Type 2 compliant.
  • Offline Cold Storage — your crypto is custodied offline using hardware security modules (HSMs), multisignature technology, and geographically distributed, access-controlled facilities. You can read more here.
  • Hardware Security Keys — secure your account with hardware security keys via WebAuthn. This provides hardware-backed, cryptographic proof that it is you (and not someone else) signing into your account and thwarts hackers even if they have your password.
  • Approved Address List — create an approved address list that restricts your crypto withdrawals to approved addresses only or disables all crypto withdrawals from your account.
  • Instant Liquidity — instantly trade your crypto in custody on our exchange without waiting for it to be transferred out of cold storage.
  • Web Interface — our web interface and account features allow you to check your balances, download account statements, initiate withdrawals, and more. Give auditors view-only access into your account to confirm balances, transactions, and activity.
  • Sub-accounts — create and manage multiple accounts with distinct sets of users, account balances, and unique, independently verifiable crypto addresses all under a single master account.

“We serve a range of institutional clients, such as hedge funds, trading firms, corporate treasuries, and asset managers. In March, we announced Gemini Fund Solutions, which supports more crypto fund issuers than any firm in the world. We’ve assisted asset managers in successfully launching several exchange-listed crypto funds, including the first North American bitcoin and ether ETFs”.

What to do Next?

If this partnership piques your interest, please fill out the form below and we will have a licensed professional contact you regarding this emerging asset class. Our partners have a combined 45 years of experience in traditional finance markets. Add the expertise of the Coinbusters Digital Asset Research Team, and you have a match optimized for a successful future. Stay safe out there, and thank you for reading!

[1] https://www.gemini.com/blog/gemini-crypto-under-custody