The Importance of a Crypto Asset Manager and Ridding Emotional Investing
"Human beings do two things really, really well: They buy what they wish they would have bought, and they sell what they are about to need" Mark Yusko, Founder, CEO and Chief Investment Officer of Morgan Creek Capital Management.
Irrational Choices in a Young Asset Class
Investor behavior is often illogical due to emotions that drive our decisions. More broadly put, emotions govern all humans. It is no coincidence that we see many authored books/articles about controlling the emotional aspect of investing, as emotion-driven investing tends to produce poor long-term investing decisions. Scientific studies also highlight these tendencies, citing the most prevalent factor influencing investment decisions is the 24/7 news cycle. The most common emotion-led investing mistakes individual investors make are buying at market tops, overreacting at times of uncertainty, and selling at market lows. Essentially, executing everything that is counterintuitive to what rational investors should be practicing. With all of this in mind, it is no wonder that the average self-managed investor earns below-market returns.
At the time of this publication, there are over 10,000 unique cryptocurrencies to invest in! There would appear to be a decreased chance for dynamic errors with seemingly fewer options to invest within the crypto space compared to the traditional finance (TradFi) offerings. However, the lapses in judgment that self-managed investing individuals make in the Tradfi sector may magnify in the crypto markets. This lapse is partly due to the pace of investing or frenzy in a relatively young asset class young asset class where a staggering number of products are onboarding in such a short period. Beyond an exponentially expanding crypto market, timing entries and exits in a more volatile investment class can accentuate the losses when emotions take over. Furthermore, second-guessing and constantly asking yourself, “which crypto to invest in” can make the process extremely daunting, to say the least, in hopes of achieving financial success in cryptocurrency investments.
The Solution
Committing your investments to a professional crypto asset management company that offers the best long-term digital asset investments is one of the most straightforward solutions to exit the emotional challenges of investing while freeing yourself of constant worry and second-guessing. If you are interested in using the services of a crypto fund manager, look no further than the On-Chain Index (OCI). OCI provides options by allowing you to build your own index fund or invest directly in specific indices. These indices have been carefully curated based on the most promising product offerings in the blockchain space. OCI’s research is backed by over 75 years of combined successful institutional and early seed investing experience and offers up-to-date and relevant happenings in the blockchain space. Most importantly, because all investments are on-chain, the level of transparency for investments has never been superior.
