Why Crypto Asset Management Makes Sense for Beginners
The cryptocurrency market is a volatile beast. The digital token price roller coaster has recently seen Bitcoin fall from grace and then reverse almost immediately. This volatility is a result of market manipulation, companies going bankrupt and investors being hacked. But that’s also exactly what makes crypto so attractive to investors looking for high returns. Investing directly in cryptocurrencies can be challenging for most conventional investors due to their complexity, liquidity challenges and volatility risks. This is exactly what Heru Finance, a crypto asset management firm wants to address.
Crypto asset management is typically offered as a full or partial service solution that allows investors to access blockchain or crypto assets through various routes. These services can be provided either directly by crypto asset management firms themselves or via a third party service provider. These firms are responsible for selecting appropriate crypto assets for clients’ portfolios, tracking and auditing the performance of those assets, helping new investors navigate and understand the crypto space, and providing general support as needed. Traditionally, investors have had to manually track and audit their own holdings, meaning they have to stay abreast of changes in portfolio composition, performance and holdings.
“Crypto asset management firms can help both new and experienced investors navigate and understand the crypto space. It helps investors gain exposure to this new asset class through the use of various investment strategies such as passively or actively managed funds, baskets and other investment products. For experienced investors, it offers a wide range of useful services, including portfolio rebalancing, tax reporting and other important functions that may not be as easy to manage by do-it-yourself investors,” says Prashant Malik, founder and CEO of Heru Finance, which is broadly applicable .recognized as the inventor of Cassandra, the distributed database used by Netflix, Meta and several global enterprises.
Prashant Malik, Founder and CEO of Heru Finance.
One of the most important functions that crypto asset management firms offer is the tracking and auditing of the holdings in their clients’ portfolios. Tracking the holdings of a portfolio can help investors understand how their investments are performing. Another important feature that crypto asset management firms offer is asset preservation. Crypto assets are designed to be stored on the blockchain, meaning they are not held or stored by a single entity or company. Asset preservation refers to the process of ensuring that crypto assets are properly backed up and maintained in an effort to protect them from theft or other unforeseen circumstances. “At Heru Finance, we have taken $20 million in crypto insurance, to ensure that even if a hack occurs, we will be able to refund our investors,” notes Malik.
Diversification is one of the most important concepts in investing. It refers to the process of spreading risk across different types of investments so that no single investment poses a major risk to the overall health of the portfolio. Crypto asset management firms can help investors diversify their portfolios by including crypto assets in client portfolios that provide a certain level of diversification. “… and this is exactly what we do to ensure that our investors are profitable,” says Malik.
The platform boasts a strong technology stack including a robo-advisor that profiles each investor and matches them to a unique set of investment strategies. The investment team also uses HQS (Heru Quant Stack) which processes data points from search, social, meta and content platforms and converts them into actionable trading decisions. There are other technological solutions that the team is working on and plans to go live soon. The platform provides exclusive investment opportunities in hand-picked blockchain and web 3.0 companies that can provide strong returns.
However, it should be noted that crypto asset management firms do not guarantee any fixed returns. “It’s important to choose the right asset management firm and do a thorough research before investing your hard-earned money,” adds Malik.
