How to invest in Crypto? Track Portfolio of Crypto Funds?
If you dont't have any strategy in crypto and dont know how to analyze crypto project, this video is for you! today ill show you how to track big crypto funds, who invested BILLIONS in crypto, and how to know in which coin do they invest now, so you can follow the smart money and invest your capital in same crypto coins.
You can read or watch video explanation about how to buy crypto and track crypto funds portfolio.
The best crypto funds and their projects - cryptocurrency and analytics of projects at an early stage of purchase
Today we will analyze the funds that are included in the cryptocurrency market.
Sometimes, at the very beginning of your investments, you can simply monitor the funds and their projects in which they invest and repeat their investment steps, hoping for a profit. But such a strategy is not always guaranteed to bring you profit.
Cryptocurrency funds are investment funds that either invest entirely in cryptocurrencies or combine them with investments in other assets. Their mission is to maximize profits.
Types of cryptocurrency funds
There are many classifications of crypto funds. We will focus on two main ones.
Closed - only qualified investors can buy their shares. These are the largest funds on the market, accumulating tens of billions of dollars, such as Grayscale.
Open - available to retail investors. Such funds are unregulated, when the investor simply buys the fund's shares, and regulated, or exchange-traded (ETF), when the fund's shares can be traded on the stock exchange.
According to the type of investments, funds can be divided into:
Venture — when the fund invests money in blockchain and crypto companies, like BlockTower Capital, Pantera Capital and Digital Currency Group. These are funds for large capital - an ordinary investor cannot enter them.
Hedge Funds - Earn profits from investing in digital assets such as Polychain Capital, CoinCapital, Multicoin Capital and BitSpread.
What separates a good fund from a bad fund?
1 - Whether the fund holds coins for the long term or sells them at the first opportunity, this is important, as this shows the reputation of the fund. You should know what price fund buying coin, vesting period unlock of this coin.
2 - Does the fund support projects, do they help the project, or are they just waiting for X's to sell and leave the project forever. You can always take some coin in which the fund was invested, the amount of investments and then look at the history of this project.
Not all funds invest and support the project in the long term, sometimes the fund invests a large amount of money in the project, pumps the price and then immediately sells the asset, crashing the coin. Yes, you can make money on this, but the main thing is to leave the project on time along with the fund. Now there are a lot of pump and dump funds, so you need to be careful.
There is no rating of funds here, who is better or worse. You don't just have to blindly follow the fund's portfolio, but diversify your holdings.
It is important not just the amount of money that the fund invests in projects, but how actively and productively the fund works to promote the project and attract new investors.
How to search for funds and analyze their portfolio?
The main website is https://www.dovemetrics.com
Here you can find all the detailed information, even more than on the official websites of the funds. Also, in live mode, you can monitor which projects a particular fund has entered recently. You can also analyze funds and their investments on websites
At the moment when you want to choose projects for investment, you can analyze the presence of a coin in the portfolio of large funds. Plus, keep track of which coins the funds enter in the early stages in order to get as much profit as possible in the long term. Keep these funds for yourself, so that when analyzing individual crypto projects, you can check and understand who is an early investor in their project. In the following videos, we will talk about vesting and distribution of coins, so that you understand when it's time to leave the project. Even if a large fund has invested in it.
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