The term crypto asset management and asset management are based on the same principles.
Asset Management is the process of monitoring, purchasing, and trading investments to be profitable or diversify your portfolio.
The primary difference between asset management and Crypto Asset Management is that the latter focuses on crypto assets.
Digital asset management, over time, has become broader than managing cryptocurrencies. It now includes managing every asset tokenized on the blockchain.
With the introduction of non-fungible tokens, you can have tokenized real estate and tokenized intellectual properties, among others.
According to investopedia, Crypto Asset Management is the practice of tracking, buying, and selling assets that are tokenized through a blockchain to ensure that you’re getting the best portfolio performance possible.
The aim of asset management is to reduce risk and increase profitability from investment.
Crypto assets originally were to be used as a medium of exchange. Nevertheless, using them as an investment opportunity is another function of money that is acceptable, but due to the risk involved in crypto trading, crypto asset management should be taken seriously like every other management principle.
Misconception about Crypto Asset Management
There has been a misconception about crypto asset management being an individual task.
Nowadays, several companies such as Grayscale, Tesla Pantera, and Wave Financial have proven that companies can diversify their investment and manage crypto assets at a larger scale.
Crypto asset management is not limited to companies and individuals.
El Salvador is also proof that crypto asset management is needed at the national and international levels.
Before you start your crypto asset management
- Not all cryptocurrencies that you buy are yours
Know this and never forget that any cryptocurrency you buy and keep on any exchange is not yours.
“It is not yours if you do not have the private key”
To maintain 100% control and ownership of your crypto assets, they should be stored in a non-custodial wallet.
- Not all cryptocurrencies are worth buying
The ease of access to create tokens has made the crypto market full of different tokens that are created for creating sake.
Make sure you do your own research before buying any cryptocurrencies.
If you are genuinely looking for asset management, not all cryptocurrencies are worth buying.
- Keep greed under check
If you are greedy in the crypto market, even the little you made might be taken from you, including the capital.
- Don’t bite more than what you can chew
This is just another way of saying invest what you can afford to lose.
The volatility is high, and the crypto market, like other financial markets, is unpredictable.
Investing with your life savings is not an ideal investment.
- Take profits
“Always take profits.”
If you reach your profit limit, take profit and secure your capital.
In any investment, even though you aim for profit, your capital should be your priority.
He who runs from the battlefield lives to fight another day.
- Stop loss is your good friend
This is the most important in crypto asset management and trading.
Before you target 2x, 10x, 50x of your capital, know the amount you are ready and willing to lose.
Crypto asset management aims to maximize profitability which is why Crypto Smart offers asset management to help individuals and companies maximize their return on investment.
Probably you’re not sure of what to do, sign Up with Crypto Smart.
About Crypto Smart
Crypto Smart is a B2B Crypto Asset Management company founded in January 2021 by Karla Obakpolor, a blockchain business developer and Algorand ambassador in 2020.
The company offers fast and secure services which are based on a well-encrypted system with 24/7 customer support services. It has grown from offering its services to individuals, to companies and major enterprises as well as providing crypto education through various crypto courses.
Crypto Smart upscaled to the Algorand blockchain and offers blockchain products which include SmartChange; a cross-chain P2P marketplace, Bitsave Protocol; a SaveFi protocol that combines savings with DeFi.