Safinus – Safe Crypto Investments – Part 2 – Problems & Solutions
As mentioned in my first post, Safinus – Safe Crypto Investments – Part 1, I will discuss several different aspects of this revolutionary platform.
In today’s post, I would like to discuss the Problems of the market that Safinus will be active in. And of course, if there’s a problem, then it also makes sense that this a new business idea will bring a solution to address these problems. So that will be the focus of the second part of today’s post.
Feel free to ask questions if you have any or join our Telegram chat here in which we discuss upcoming ICO’s and the current (technical point of) view of Bitcoin and Ethereum.
Enjoy your day and trade/invest safely!
Problems Of The Crypto Currency Market
Current market problems
Investment profits are not the only things that are growing together with cryptoassets, the number of problems that new investors, as well as experienced market participants run into, are growing too.
Problems of new investors
The main problem troubling new investors is the necessity to spend a considerable amount of energy and time studying all of the details of the cryptomarket.
First off, the Blockchain and other technologies connected to the cryptomarket are constantly developing and becoming more complex, while a lot of investors do not possess technical knowledge. This makes investments in cryptocurrencies more challenging, and especially regarding ICO’s, which commonly employ complex technical solutions.
Secondly, when investing funds in ICO tokens, investors are forced to spend a tremendous amount of time on searching and picking a quality project for investing. In order to not turn cryptoinvestments into a lottery, and to make a well thought decision, it’s necessary to at least study the following behind each company:
The market, for which the company’s product is meant.
The products ability to solve the markets problem.
Competitors in the market.
Readiness of the product.
The amount of previously acquired funds (if any).
The team, its competence, and public activity.
Partners and company advisers.
Distribution structure of ICO tokens.
Finally, many investors are scared away by the lack of a clear regulatory framework in terms of the ICO market. Also, the absence of regulations attracts a lot of scammers, that take advantage of inexperienced investors in order to satisfy their selfish goals.
This situation forces market participants to analyze huge amounts of information on an almost daily basis in order to not make a mistake and lose their capital.
As a result, all beginner investors can be split into two groups:
Those that completely deny the thought of investing in cryptoassets in light of an absence of desire to dive into studying the market and its unicalities.
Those that have acquired some base knowledge and invested their funds only in BTC or ETH, while not having any interest in figuring out all of the other cryptocurrencies and ICO tokens.
These events lead to a decrease in investment inflows into the market and large volumes of lost profits.
Problems of experienced private investors
Experienced private investors are individuals that understand the market well, and frequently receive good profits.
The main problem of private investors is a limit on managed funds. Meaning that their investments are limited to their own funds.
Problems of cryptofunds
First off, it is difficult for cryptofunds to attract new clients, especially outside the bounds of their home region, since the absence of legal frameworks scares away investors from other countries. More so, it is challenging for funds to prove their qualifications and verify their revenue in front of investors.
Currently, many professional players are taking various steps in order to increase the transparency of their business operations. As an example, actions involving all of the cryptofunds wallets can be disclosed. But it is challenging for an investor to monitor the funds growth dynamics over ten of different wallets.
A lack of tools that can increase the trust levels of investors lead to weak developments of fund management, significant decreases in cryptoasset investments and the loss of potential profits.
The next problem of professional market participants is the high amount of communication efforts required when working with small clients. Many small investors, who have invested insignificant amounts start attacking portfolio managers with questions at the slightest price fluctuations, or after reading some news about changes in the cryptocurrency and ICO spheres. As a result, cryptofunds establish entry barriers that are quite high, in order to escape these problems.
However, establishing these barriers leads to the amount of assets controlled by cryptofunds to decrease, since these barriers prevent a significant amount of new investors from entering the market.
Because of these problems, it’s challenging for cryptofunds to attract capital, which decrease the volume of managed funds and leads to lost opportunities.
All of the aforementioned problems limit the development of trusted crypto asset management, which in itself negatively impacts the market growth dynamics.
Experienced private investors operate using their personal assets, and cryptofunds experience difficulties in broadening their circle of investors.
At the same time, a lot of inexperienced investors bump into problems when attempting to enter the market. A significant portion of them can’t, or does not want to independently figure out all of the its nuances, and as a result, reject investing in cryptoassets altogether, or limit themselves to investing in only well-known base currencies like BTC and ETH.
Solving these problems will allow for an increase of capital from new investors, and significantly broaden trade volumes. This will help the market grow even more.
So what is the Safinus platform and what Solutions does it offer?
Safinus is a new, revolutionary platform, where new entrants to the crypto market can join profitable cryptocurrency and ICO portfolios in just a few clicks.
Additionally, experienced investors can significantly increase the volume of their managed capital, while professional traders and funds can attract new clients on a global scale.
We, from CryptoRatingDesk.com, will also manage our Portfolio at the Safinus platform once it is operational, in order for our readers to follow and stay up to date about our decisions what we buy and sell. And of course, if you feel confident that we make the right decisions, you could take it to the next level and invest in our Portfolio in just a few clicks.
7 Key Components of the Safinus Platform
The Safinus platform is composed of the following key components:
Portfolio creation mechanism, which allows experienced investors (or funds) to create their cryptocurrency and ICO portfolios on the platform, and any (even the most inexperienced) investors to join a portfolio with his funds in just a few clicks.
Universal portfolio rating, that is created automatically through saved and verified Blockchain information regarding portfolio earnings.
Individual cryptoasset management mechanism, that allows professional traders to cater to large investors individually.
Voting system for adding cryptocurrencies and ICO, which allows only community and trader verified authentic cryptocurrencies and ICO’s to be added to the platform. It protects platform users from scams.
Mechanism for simultaneous trading on multiple exchanges through a single interface, which guarantees asset liquidity in portfolios.
The decentralized cryptocurrency exchange, which will replace centralized services and will allow assets to be controlled transparently, and with absolute security in the future.
Instruments for the automatization of cryptocurrency trade strategies and portfolio management.
In the next Safinus post, we’ll take a closer look at why we contribute to the Safinus ICO.