Home Technology Why Crypto Asset Management Makes Sense for Novice Investors

Why Crypto Asset Management Makes Sense for Novice Investors

Why Crypto Asset Management Makes Sense for Novice Investors

The cryptocurrency market is a volatile beast. The digital token price rollercoaster recently saw Bitcoin fall out of favor and then rebound almost immediately. This volatility is the result of market manipulation, corporate bankruptcies and investor hacks. But that’s also exactly what makes crypto so appealing to investors looking for high returns. Investing directly in cryptocurrencies can be difficult for most conventional investors due to their complexity, liquidity issues, and volatility risk. This is exactly what Heru Finance, a crypto asset management company, wants to solve.

Crypto asset management is usually offered as a full or partial service solution that allows investors to access blockchain or crypto assets through different routes. These services can be provided either directly by the crypto asset management companies themselves or through a third-party service provider. These firms are responsible for selecting the appropriate crypto assets for their clients’ portfolios, tracking and auditing the performance of those assets, helping new investors navigate and understand the crypto space, and providing general support. if necessary. Traditionally, investors have had to manually track and audit their own holdings, which means keeping up to date with changes in portfolio composition, performance and holdings.

“Crypto asset management companies can help 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 provides a wide range of useful services, including portfolio rebalancing, tax reporting and other crucial functions that may not be so easily handled by DIY investors,” said Prashant Malik, founder and CEO of Heru Finance, who is widely credited as the inventor of Cassandra, the distributed database used by Netflix, Meta and several global companies.

Prashant Malik, Founder and CEO of Heru Finance.

One of the most important functions provided by crypto asset management companies is the tracking and auditing of holdings in client wallets. Tracking portfolio holdings can help investors understand the performance of their investments. Another important function provided by crypto asset management companies is asset preservation. Crypto-assets are designed to be stored on the blockchain, meaning they are not owned or stored by any single entity or company. Asset preservation refers to the process of ensuring that crypto assets are properly backed up and maintained with the aim of protecting them against theft or other unforeseen circumstances. “At Heru Finance, we have taken out crypto insurance worth $20 million, to ensure that even in the event of a hack, we will be able to reimburse our investors,” Malik notes.

Diversification is one of the most important concepts in investing. It refers to the process of spreading risk among different types of investments so that no single investment poses a significant risk to the overall health of the portfolio. Crypto asset management companies can help investors diversify their portfolios by including crypto assets in client portfolios that provide some level of diversification. “…and that’s exactly what we do to make sure our investors are profitable,” says Malik.

The platform has a strong technology stack, including a robo-advisor that profiles each investor and matches them with a unique set of investment strategies. The investment team also uses HQS (Heru Quant Stack) which processes data points from research, social, meta and content platforms and converts them into actionable trading decisions. The team is working on other technology solutions and plans to bring them online shortly. The platform offers exclusive investment opportunities in hand-picked blockchain and web 3.0 companies that can deliver strong returns.

However, it should be noted that crypto asset management companies do not guarantee any fixed returns. “It’s important to choose the right asset management company and do thorough research before investing your hard-earned money,” adds Malik.


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