Crypto Asset Management: Definitive Guide

Crypto has been characterized by price volatility. Here's our guide to simplifying the crypto asset management process.

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Until recently, the primary investment strategy in this market was trading. However, as the sector continues to evolve, several crypto-asset strategies that aren’t as bumpy as the original investment options are coming up. One such remedy is crypto asset management solutions.

Let’s dive in and get a more profound revelation of the best tips you can implement to earn more with crypto assets.

What Is Crypto Asset Management?

Crypto asset management is an increasingly popular field of finance that deal with the safekeeping, exchange, and management of digital assets such as cryptocurrencies. In the simplest terms, it involves a custodial service store and exchanging crypto assets on behalf of its customers in a secure environment.

The goal of any crypto asset management is to ensure that client’s investments in the fast-growing world of digital assets are kept confidential and safe from theft or fraud and that their holdings remain highly liquid.

Crypto asset managers employ sophisticated technologies such as distributed ledgers and decentralized networks that provide unprecedented levels of security compared to traditional trading systems. A major advantage of this new form of investment is its versatile nature – it can be used to diversify portfolios, support hedging strategies, or take on speculative trades.

There is no doubt that crypto asset management will continue to revolutionize the way individuals and companies access global markets – providing unprecedented convenience and enhanced liquidity.

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Enjoy the highest earning rates in the market with top performing trading strategies.

What are the goals of Crypto Asset Management?

Asset management refers to maximizing returns while minimizing risk by managing cryptocurrencies and other digital assets. Portfolio managers or investors may have different goals and objectives when managing crypto assets. In general, crypto asset management aims to:

  • Diversification: Crypto asset management aims to minimize risk by diversifying the portfolio. Various cryptocurrencies and other digital assets may be held, as well as assets in different sectors and with different risk profiles.
  • Management of risk: Another goal of crypto asset management is to minimize risk by closely monitoring and managing the portfolio. To protect against potential losses, stop-loss orders or hedging techniques can be used.
  • Returns maximization: Many crypto asset managers aim for maximum returns. Cryptocurrencies and other digital assets with significant price appreciation potential may be identified and invested in.
  • Compliance: Crypto asset managers are also committed to complying with relevant regulations. The process may involve due diligence, anti-money laundering, and know your customer (KYC).

Other goals of crypto asset managers may be to educate investors about cryptocurrencies and other digital assets.

Managing your assets on your own

Here are some tips for managing your own crypto portfolio.

  1. Identify your investment objectives
  2. Research strategies and cryptocurrencies
  3. Choose a crypto wallet or exchange platform
  4. Monitor your positions

Step 1 – Identify Your Investment Goals

Identifying your investment goals is the first step. Here are some examples of goals:

  • Maximizing returns,
  • Keeping risks to a minimum,
  • Portfolio diversification,
  • Investing for long-term gain,
  • Profiting in the short term,

Obviously, the list can go on, but the main idea is to decide why you are making an investment and what your expectations are.

Step 2 – Research

The first step to achieving your investment objective is to take a look at the cryptocurrencies and the strategies that offer that possibility. In other words, you will have to look for options.

You may want to research:

Learn more: How to generate passive income from crypto

Before making an investment, research and understand cryptocurrencies, investment techniques, arbitrage opportunities, etc., and their potential to ensure that they will deliver the results you expect.

Step 3 – Choosing a Wallet or Trading Platform

It is necessary to have a crypto wallet, such as Haru Invest, in order to store cryptocurrencies. It is also possible to trade cryptocurrencies on crypto exchanges if you wish to do so.

Search for platforms, and wallets and decide which one works for your investment goal and strategy.

Step 4 – Monitor and Manage Your Portfolio

In case your exchange doesn’t allow you to monitor your portfolio or you use more than one exchange or crypto wallet, you may want to use a portfolio tracker. This is really helpful for monitoring purposes.

As you monitor your positions and the results of your strategy, you must rebalance your portfolio continuously. Continuous tracking and action are required.

Which tools can be used for asset management?

Crypto portfolio tracking software, trading platforms like Haru Switch, risk management tools, compliance tools, and research tools are some tools used in asset management.

It can be useful to portfolio managers to have these tools for tracking investments, making trades, assessing and managing risk, and researching investments. Managers can use specific tools depending on their needs and goals, which is why it’s important to decide what the goals are first.

Top Crypto Asset Management Companies and Firms

Purchasing cryptocurrencies is more complicated than buying regular equities. As the crypto market continues to attract more new investors, market participants are coming up with safe and less risky ways of investing.

New traders face a myriad of challenges, including finding suitable wallets that can accept the cryptocurrencies they wish to trade. They also face long and multifaceted verification processes. The complexity of the process is a significant barrier to new traders.

The volatility of the market is also a hurdle for new investors who may lose their investment in no time due to their naivety. Even for the most experienced investors, managing cryptocurrency assets isn’t a walk in the park. This has led to the introduction of asset management to make investing in cryptocurrencies simpler and less risky.

Already, we have several funds and market players offering crypto asset management. In this case, they invest on behalf of the customers, and in return, the clients earn an interest. Some asset management companies pay high returns to their customers, with some reporting a 50% return in less than four months. Since this is a less risky investment, the number of investors and asset management funds/companies is increasing.

1 – Haru Invest

Haru Invest is a digital asset investment platform that offers an interest-bearing crypto deposit service and fund service. Haru Invest lets you earn interest on cryptocurrency.

Unlike other platforms out there, Haru Invest does not operate in the lending model. Instead, Haru Invest invests crypto assets with high frequency trading, exploiting the gaps between crypto spot or derivative exchanges. With this different way of generating returns, Haru Invest has been consistently paying out earnings with minimized risk.

Some of the strategies that Haru Invest works with include :

  • Arbitrage Trading that leverages BTC and ETH price gap between crypto exchanges
  • Market Neutral Strategy based on the price stability mechanism at the futures exchange
  • Spread Trading that focuses on the volatility of BTC/ ETH futures contract

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2 – Grayscale Investments

Grayscale Investments is one of the most well-known crypto investment firms. It offers various services, including asset management, storage, and trading. Grayscale also provides a wide range of crypto assets to invest in, making it a good option for investors looking to diversify their portfolios.

One downside to Grayscale is that its fees can be pretty high. For example, its management fees start at 2.5% and go up to 20%. However, they offer a wide range of services and crypto assets, making them a good option for investors looking to get started in crypto investing.

3 – Bitwise Asset Management

Another player in the crypto asset management space is Bitwise Asset Management. It offers various services, including crypto index funds and an asset management platform. Bitwise also has a wide range of crypto assets to invest in, making it a good option for investors looking to diversify their portfolios.

Bitwise has a minimum investment amount of $100,000, which may be prohibitive for some investors. However, its fees are pretty low, starting at 0.5%. This makes it a good option for investors with a large amount of capital to invest.

4 – Wave Financial

Next, there is Wave Financial. Suppose you’re looking for a crypto asset management company that offers various services. In that case, Wave Financial might be a good option for you. They offer crypto the usual crypto asset management services, as well as crypto tax preparation and crypto merchant processing. What sets Wave Financial apart is their ” crypto checking account”, which allows you to spend your crypto like cash.

The downside is it’s not that easy to open an account and start.

5 – Pantera Capital Management

Last but not least is Pantera Capital Management. As the first U.S. institutional crypto asset manager, Pantera Capital Management has a long history in the crypto space. It offers crypto investment services, as well as crypto research and consulting. Pantera Capital Management is a good option for investors seeking a comprehensive crypto asset management solution.

It also gives users a seamless experience regarding crypto asset management. Its platform is user-friendly and offers a variety of features, including a portfolio tracker, news feed, and market data. In addition, Pantera doesn’t charge any management fees, making them a good option for investors looking to keep costs low.

Why Should You Invest With Haru?

Since its launch in 2019, the Haru Invest trading strategy has been guided by algorithmic trading, not borrowing and lending.

We deploy three core algorithmic trading strategies to drive profits for investors:

  • Arbitrage trading that leverages the price gap between crypto exchanges
  • Market neutral strategy based on the price stability mechanisms at crypto futures exchanges
  • Spread trading that focuses on the volatility of BTC/ETH futures contracts

We find inefficiencies between different crypto futures markets that did not previously exist in the traditional financial market. And by using this mechanism in the crypto futures market, Haru Invest can generate profits by using a hedging strategy that leverages a futures contracts mechanism to hedge a spot market. In other words, this strategy is using perpetual futures’ funding fees to generate profits by hedging the risks of future contracts in the spot market.

Learn more: Why Haru Invest?

How to Start With Haru Invest?

Creating an account with Haru Invest is pretty simple. You just need to open the account, deposit your crypto, and sit back as the Haru Invest manages your crypto assets.

Learn more: Products on Haru Invest

Although investing in cryptocurrencies can be tasking, especially for new adopters, the crypto investment management offered by Haru Invest is an attractive option for those looking for less risky investments in this market.

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