Hedge Coin Capital is an Investment management which utilises all forms of cryptocurrency products and services for eligible investors, to ensure a unique outcome for investor returns. Below are the types of products which are being implemented for investors, which will be apart of more detailed and sophisticated strategies once blended together for investor portfolios. More updates will occur in the coming weeks to show the difference in how investors will benefit from our various services.
- Bitcoin is the mother of all cryptocurrencies. Created in 2008 by Satoshi Nakamoto, Bitcoin was the first blockchain cryptocurrency and started the era of digital currencies. It is a decentralised, peer-to-peer cryptocurrency system which allows users to process digital transactions. Bitcoin has no central bank or central authority to govern it. It is the first truly decentralised cryptocurrency, with transactions validated through ‘proof of work’, better known as Bitcoin mining. It was created to reduce dependency on traditional finance following the 2008 financial crisis, and provide an alternative investment strategy for modern, twenty-first century investors.
- Altcoins (short for alternative coins) refer to cryptocurrencies other than Bitcoin. Most altcoins are very similar to Bitcoin in that they require a mining process, are peer to peer and offer a cheaper method of fund transactions via the internet. There are hundreds of different altcoins that offer solutions to real world problems. The price of these altcoins increases dependent on the coins implementation into a real world scenario and the success of the business developing it.
- Derivatives are contracts whose value is derived from the underlying asset (e.g. Bitcoin). Trading derivatives allows one to make leveraged profits based off predictions on the future value of an asset. Derivatives, such as swaps and futures, protect against non-favourable market movements by having contracts that allow settlement of assets at particular prices.
- Much like an IPO (Initial Public Offering) in traditional markets, an ICO (Initial Coin Offering) is the beginning of a new cryptocurrency venture. New businesses and startups use ICOs as a practical means of fundraising whereby a portion of their cryptocurrency is sold to early backers and investors. This is done in exchange for legal tender or other cryptocurrencies. The funds raised via an ICO are used by the company to set up their business model and support operations. The ICO market started to take off in 2017 and is set to grow exponentially in the next few years.
- Hedge Funds are investment vehicles which use investor funds to speculate and generate returns. With the emergence of digital currencies, we are seeing more and more hedge funds entering the cryptocurrency market. Each hedge fund is unique and takes a proprietary investment approach governed by their managers.
- Arbitrage is the process of buying low and selling high across different markets in order to secure profits based on varying prices. This is done by the leveraging of price discrepancies inherent to markets for the same assets occurring in different jurisdictions and geographic locations. By effectively trading using arbitrage, a profit can be made without having to hold the assets over long periods of time and in both bull and bear markets.
AUTOMATED TRADING SYSTEMS
- ATS, or more commonly known as trading bots, are fully automated 24/7 algorithmic computer programs that use various indicators to recognise market trends and automatically execute trades. These bots have been used in a variety of traditional finance vehicles, such as hedge funds, investment banks and foreign exchange speculators.
- OTC trading is done directly between two parties. An OTC broker either supplies the trade with liquidity, or finds someone willing to take the other end of the trade. With an OTC broker, you get a price quoted to you up front without the concern of order books, order book depth, markets moving, exchanges, trades failing and many other inconveniences of trading. OTC trading presents the ability to trade large blocks without moving the market price whilst maintaining cost efficiency. OTC trading also allows for freedom of choice for investors and discreet access to diverse asset classes.