Crypto with Coratum
- Cryptocurrencies are growing rapidly
- They’re open to any investor anywhere
- No need to be an expert
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Coratum uses three principle strategies
We invest in Bitcoin as a store of value, like digital gold. Our expectation here is that Bitcoin becomes more entrenched as a digital store of value and the price rises significantly over the next five years.
We hold Ethereum’s token, Ether, as we consider it as both a store of value and money. Given Ethereum’s current position as the principal place to develop applications that use digital assets, we expect continued and significant growth.
Decentralised Finance, or DeFi, projects are the financial system for digital assets. We generate returns by lending and trading these tokens according to our strict valuation framework.
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What does it mean to invest in Cryptocurrency?
What is cryptocurrency?
Cryptocurrency is a type of digital money that exists only on the internet. You might have heard of it: Bitcoin is the most well-known cryptocurrency. There are many other types, some of which come from individual companies.
Cryptocurrency is possible thanks to a new technology called Blockchain. You keep your cryptocurrency in an online wallet, meaning you don’t need to have a bank to look after your assets.
You can do cryptocurrency transactions directly with other people in a few seconds, and at a low cost. There are no borders in cryptocurrency. You can move your money from anywhere to anywhere without any controls. Just like for shares and bonds, you can invest in cryptocurrency to make money from price rises.
What does it mean to invest in cryptocurrency?
You can buy cryptocurrency on an exchange, like Coinbase or CEX.io. The exchange stores your cryptocurrency for you. You can also choose hold it directly on your computer, in a software wallet that you control.
When you’re ready to cash out, you can then sell your cryptocurrency on the same exchange. You’ll then get some GBP transferred back into your regular bank account.
How does cryptocurrency compare to regular investments?
Some things make cryptocurrencies a different type of investment. Currently, there is very little regulation. The UK government doesn’t guarantee your investment, like with some other retail investment products. You can also invest directly (without an intermediary). It’s up to you to investigate and choose the right options for your portfolio. Choosing the right option is risky. Many cryptocurrency investments come across more like software products than investment ones.
What are the opportunities?
Cryptocurrency is a growing market with massive potential. Market capitalisation has grown from just over $10 billion in 2014 to $237 billion today. Most people expect further growth over the next few years. We’re only starting to explore the possibilities of the technology. There will be plenty of killer apps and general adoption of cryptocurrency products. Imagine how the internet changed between the late 1990s and today. That’s the kind of development still to come for cryptocurrencies.
What are the risks?
As mentioned, there is currently very little regulation around cryptocurrency products. The technology itself also makes it difficult to police. Transactions are irreversible. Nobody can give cryptocurrency back if things go wrong. User errors can be expensive so getting professional help is an excellent idea. Cryptocurrency technology is still new, so it’s essential to invest in trustworthy products.
Where should it fit in your portfolio?
Cryptocurrency investments are best as the high-risk elements of a balanced portfolio. Cryptocurrency is an early-stage technology investment, and the price is volatile. For these reasons, holding cryptocurrency investments over a 5-10 year window is advised. It is not suitable for retirement provisioning. Don’t invest money you can’t afford to lose. It isn’t a good idea to invest more than 10% of your total net worth.
Who we are
Coratum was founded in 2020 by British entrepreneur Benjamin Stanley. An alumnus of Accenture, Bank of New York Mellon and SunGard, Ben has been active in the digital asset space since 2015.
He’s also a blockchain startup founder, having created secure value exchange platform SureVX after spending 15 years delivering back-office information technology projects in large financial institutions across London and Paris.