Invest in the Next Great Wave of Innovation with Using On-Chain Investments

Why a Full-Service On-Chain Cryptocurrency Portfolio Manager is Key

Blockchain and cryptocurrency technologies arguably offer the most innovative investment sector to deploy capital in, as it's early times. Like any other investment in a tech-related market, required fundamental macro knowledge of specified projects is preferable. However, considering the variety of cryptocurrency projects to invest in and the complexities of smart contracts, investors must consider many factors before deploying capital, such as:

• Blockchain Type (layer 1,2,etc) 

• Consensus Mechanism in Use

• POW vs. POS

• Address Activity, Growth, and Distribution

• Network Activity

• Transaction Volume and Fees per Transaction

• Market Cap, Liquidity, Supply, and Value

• Vision and Associated Research Team

• Current Investors, History of Team

• Competitors 

• Road Map

• Tokenomics and Utility 

• Socio-Political Environment Factors 

• Sentiment and Trend 

We can see that research is not a task that investors can take lightly by examining metrics in a superficial manner. The fundamental knowledge needed to vet a project requires inordinate attention to detail. Note that these are basic metrics, and we have not even mentioned the considerations of an investment thesis or technical analysis. Moving beyond the investigation of the product itself, let us examine other external nuances that make investing in cryptocurrency funds difficult from an individual perspective. 

What is your Opportunity Cost?

Like recycling, investing in blockchain technologies has opportunity costs that we must acknowledge. For some, recycling aluminum cans and glass bottles for USD is justified by the opportunity costs of time and payout; for others, not so much. Time should be our most paramount concern for many investors, an asset exponentially increasing in value as we mature. Some may argue that outsourcing your blockchain investments results in fewer profits as the incurrence of fees lowers earnings compared to formulating your crypto strategy. Dismissing the need for a "cryptocurrency portfolio manager" is a narrowly focused approach as the opportunity cost of an individual's time is often omitted or at least not accounted for realistically. All of this assumes that your time invested in research will yield results that meet or beat that of a professional cryptocurrency portfolio manager.   

Determining Value in Blockchain and Cryptocurrency Products

Young companies (which virtually all blockchain-based companies are), especially those in tech, are often hard to pin valuations. In many cases, unsuccessful companies can carry robust valuations until the market gives up on those growth prospects. And those growth prospects of what is considered to be the best crypto investment at any given time can go to zero quickly! Cryptocurrency and blockchain projects also have an above-average number of public companies that have not produced positive cash flow. The absence of a track record forces investors to use more guesswork when building confidence in deciding which cryptocurrency to buy now.  Creating a fair market valuation only reminds us of the intricacies of the depth and breadth of knowledge required to curate a personalized crypto portfolio. Especially one that could compete with a professionally managed blockchain investment fund such as OCI.  

Don't Underestimate the Difficulty

Warren Buffett has often said, "Risk comes from not knowing what you are doing."

Humans have recency bias, and we tend to romanticize past wins, even successes with which we may not have directly been involved. It's easy to underestimate the difficulty of choosing the best long term crypto investments, especially when you see so many investors rake in substantial gains in relatively short periods from some popular cryptocurrencies. It's vital to assess your stature in investing and reason by asking yourself the following: 

•  Is your blockchain technology expertise outside the middle of the bell curve, toward the right?

• Is your main job investing in and recognizing technological transformations?

• Is research just a hobby, or are you committed to keeping up with the myriad of blockchain developments?

If you answered no to any of those questions, one should consider using On-Chain Index investments. OCI offers a  cryptocurrency portfolio management experience second to none in service and expertise. This experience is fueled by a team of full-time research analysts and proven fund managers who recognize transformable technological trends that result in early investment opportunities.