Coinvest claims to be the world’s first decentralized investment trading market for cryptocurrencies.

They are determined to democratize cryptocurrencies by creating tools to provide mechanisms for consumers to seamlessly, securely, and safely invest and use cryptocurrencies.

So their goal is to have one platform, one wallet, and one token (COIN). They want to achieve that in order to enable you to create a digital investment portfolio to invest in multiple cryptocurrencies.

The main advantages of this is that it reduces the cost, risk, and complexity associated with investing in cryptocurrencies.

They will use smart contracts to programmatically automate the transference of funds to users, investors, and owners within the entire Coinvest ecosystem.

Let’s have a look at the way this works:

1. You create a Coinvest Virtual Portfolio with Your Favorite Cryptocurrencies
2. You Trade and Withdraw Investments (hopefully with a Profit) Directly with their Smart Contract
3. You can then easily spend cryptocurrencies using their debit card account

Blockchain

They want to leverage the blockchain technology, so that their solutions scales globally and provides multiple benefits.

Let’s have a look at some of them.

Simplicity

They claim that “Investing in cryptocurrencies today is an extremely difficult and intensive process” — well, it’s not that difficult is it?

Then they say that “Exchanges require KYC authorization which can take hours (if not days) to validate.” — well, in my opinion I think there is nothing wrong with that. KYC is an important step in order to prevent money laundering for example. But it seems that Coinvest will legally bypass the KYC process because they don’t accept fiat or exchange from or to it. Their smart contract will be the custodian of your funds.

Convenience

They mention Convenience because it is hard for some people to store cryptonized assets with different types of wallets (such as hot, cold, paper, etc.). With Coinvest, there is no storage of investment assets as all portfolios are completely digital. Although I would definitely recommend that you store your cryptocurrencies in a cold storage wallet. I personally use the Ledger Nano S and it’s really easy to use. I will leave a link in the description if you want to check it out.

Diversification

So, Coinvest offers index funds containing a portfolio of cryptonized assets. An index fund as you know will enable you to invest without individually and actively purchasing assets. By giving that control to coinvest they will take care of everything for you and will provide you with a broad market exposure, low operating expenses, and low portfolio turnover.

Autonomy

They claim that There are currently no investment vehicles that enable investors to curate and invest in an index of cryptonized assets created by themselves. I think they are talking about projects such as Iconomi which I have covered a few months ago in one of my videos. That’s an advantage indeed for coinvest and they suggest that this autonomy will empower you to control the assets, the distribution percentages, the rebalances, and withdrawals of your own individual fund.

Decentralization and Security

Coinvest does not accept any funds (fiat, cryptocurrency, etc.) or payments direct from you, the user. They say that user funds will be held in escrow and controlled by the Coinvest autonomous bot within a smart contract in the Coinvest protocol. Then, you can withdraw funds or close your positions at any time and obtain distributions automatically via the Coinvest smart contract. Therefore, the Coinvest investment process requires no human involvement or interaction.

Token COIN

This is great and it does eliminate a few risks. So what is the purpose of the token?

Well, first of all, the token gives you the chance to invest into these index funds.

Secondly, there will be Trading Rewards for users that frequently leverage the platform. For example, every ten trades results in a bonus distribution of COIN equivalent to one trade back to your wallet.

Thirdly, a pretty obvious one, Trading Profits. As with traditional trading, you can obtain value from profitable trades in your investment portfolio.

Index Fund Management

Finally, Index Fund Management. Coinvest empowers you or other users to create your own personal index fund using a curated list of cryptonized assets; thereby, becoming your very own index fund manager. Other users can then invest in your index fund and you, as the creator of the index fund will collect half of the trading fee revenue for each trade into your fund.

In summary, coinvest is seeking to disrupt the complex unsecure investment channels that exist today. They want to empower users to easily invest and use cryptocurrencies through solutions that are open-source, free of third-parties, and completely decentralized.

If you want to read further into this project, here are the links to the white paper and their website.

Please let me know your thoughts on this project in the comments.

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