Lucy Builds A Truly Diversified Crypto Portfolio With Countinghouse

mcdform (46)in #bitcoin • 7 years ago

Lucy has been investing in traditional markets for over 15 years and has recently gotten into cryptocurrencies. She has found that crypto investing is much more time consuming and research-intensive than the stock market.

She is also finding that most cryptocurrencies are highly correlated to Bitcoin and making a truly diversified portfolio is very difficult if not impossible. After much research, she decided on a basic portfolio containing mostly BTC and ETH, with a small allocation of hand-selected small-cap tokens. Even still she wasn't satisfied that her portfolio was always moving the same direction as Bitcoin.

Finally, Lucy found Countinghouse, a tokenized hedge fund that employs algorithms and coded trading strategies that were adapted from a FOREX fund.

Adding A Touch Of Risk

With Countinghouse Lucy can choose to add as much or as little exposure as she wishes. If she would like 1% of her portfolio to be allocated to a high-risk high reward hedge fund she can purchase 1000 CHT tokens, for 10% she can purchase 10,000 CHT.

The lure of a hedge fund is that they used strategies that are intended to profit in bear and bull markets. The downside of a traditional hedge fund is that they only allow high wealth investors, often referred to as "accredited" or "institutional", to participate.

Participation in the Countinghouse fund is simple and does not require a minimum level of wealth. When anyone purchases a CHT token they immediately own a percentage of the net asset value of the fund. If someone owns 1000 CHT out of 60 million they would own .0017% of the NAV.

Lucy Wants To Reduce Exposure To The Fund

The fund has been performing well and Lucy wants to reduce her exposure since her crypto investment goals have been obtained. Lucy has three options to reduce her holdings.

If the fund's speculative value on the open market is greater than its liquidity value then she might want trade CHT on an exchange. If the liquidity value is greater than the market value then Lucy has the option to sell the tokens back to the platform.

The buyback program will pay Lucy the liquidity value of the tokens at any time. All token-holders will be aware of the liquidity value because the team will release weekly reports that display the current status.

The final way that Lucy could reduce her holdings is to conduct a p2p sale of the tokens. This p2p transfer is very unique and only available in a tokenized ecosystem.

Why choose Countinghouse?

So why did Lucy choose Countinghouse in the first place? Lucy isn't a high wealth investor so she cannot participate in traditional hedge funds, she also lives in a country where hedge fund participation is limited for other reasons.

Thirdly, Lucy could not find a similar fund that added the amount of risk she wanted. For her portfolio, Lucy wanted to have only a tiny amount exposed to a high risk/high reward option. Lastly, Lucy wanted the ability to rebalance her portfolio at any time and was looking for a fund with no withdrawal fees and constant liquidity. Countinhouse was the only project she could find that met all of these criteria.