Fund Management vs. Retail Investing, and the Alternatives 5% Rule
By Lewis Shaw
Volatility and Hype
When investing in alternative assets there aren't any reminders or dinner bells, time=trust.
The best example is #Gold, without any functional value it remains the safest store of value central banks use to control the relative value of their currencies. Enter Crypto!
Transactional costs have been the haunt for years of the major banks and companies, all competing to offer the best rate for individuals and #smallbusinesses, and with this competition data became monetized, first as a medium for knowing consumer habits, and then as a 'coin' for anticipating those needs and wants, and so the 'coin' was digitized and given value. This technology in transaction became known as 'blockchain technology'.
Despite the best efforts to confront the now 'fungible asset, authorities in 20018 made it tangible, in other words, 'coins' were recognized as property by the IRS with the consequent taxes, regulations and so forth. But nevertheless 'recognized'. This created 'tax risk' but no 'systemic risk' to the industry as a whole. #Crypto is here to stay!
The 'tax risk' was made clear when the IRS, in 2017, forced #Coinbase to audit their records. and the resultant resolution of 2018!
Cryptocurrency is not a 'get-rich quick scheme' nor is it an infinite pool of liquidity, but a necessary tool in the digitization of technology.
The result is three exchanges:
Centralized cryptocurrency exchange (CEX)
Decentralized cryptocurrency exchange (DEX)
and Hybrid Exchanges
Then the safest of all the options:
The Hard Wallet
The Hard Wallet is given the right choices and the continuation of digitization like a SIPP or an IRA. 'Fire and Forget' for the next generation or generations, or 'rainy day'.
For more aggressive investments in the future say 4-10% + capital/alpha accumulation there's De-Fi; this is the effective pooling of resources for 'lending and borrowing' projects, given the nature of lending it is currently under regulatory scrutiny as the danger of Usury (Lending at 6.5% or above on an individual basis/loan sharking) remains 'High'. Otherwise, with the proper research, and Time=Trust, it's an infant industry that should be given consideration.
The focus of this page is transactional speed that the deregulation/regulation of the industry offers. Strategic resources can be mustered to meet medical and energy needs globally now, some fingers being pointed for the energy outage last year in Texas, the assets themselves are still learning from lessons past.
The focus for this website is mainly on this applicability; medicine financing, energy renewal, and lending.
Also please remember 'all trading carries risk' and for Taxes please refer to the 'Reports on Foreign Banks and Financial Accounts (or FBARs) with your tax attorney, or tax software. #investsafe #tradesafe
I did my best to bring our readers up to speed, and I hope you enjoyed it!
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