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What is asset management?

Asset management exists for decades but it is an ever-evolving aspect of the financial system which makes it relatively hard to explain.

Due to the complexity of the concept, it has been linked with other financial services such as investment platforms.

Other concept are consultation, investment appraisal, professional services among others.

In this article, you will understand the various perspectives and learn what the concept really is.

Sit back and learn

What is Asset Management?

Asset management, according to Corporate Finance Institute(CFI), refers to the process of developing, operating, maintaining, and selling assets in a cost-effective manner.

According to Investopedia, it is the practice of increasing total wealth over time by acquiring, maintaining, and trading investments that have the potential to grow in value.

From the above definitions, asset management is wider in scope than traditional investment which has to do with the acquisition and disposal of investment assets only.

Investment companies simply increase wealth by giving a certain percentage at the end of the agreed period.

As much as this relates, it encompasses only a function of asset management.

To better understand, let’s consider the different types.

Types of asset management

Asset management can be broadly categorized into any of the following:

Physical asset management

This is the process of managing physical assets such as non-current assets management (buildings, machinery, etc), inventory management, infrastructure, and public assets among others.

Financial asset management

This is the process of managing finances by developing an investment strategy and controlling budget and costs. Majorly, this has to do with cash management.

Contractual compliance

This entails processes like IT assets (software management), digital assets, and management of intangible assets.

Goals of Asset management

Increasing value

Increasing value is the primary goal that asset management seeks to achieve. It entails the processes and strategy involved in increasing returns and ensuring efficiency.

Mitigating risks

Each process and strategy have a certain level of risk associated with it. And one of the goals is to increase value under an acceptable level of risk.

In a nutshell, it tends to reduce risks in a changing business environment which can be financial risks, legal risks, and compliance risks, among others.

Investments for short term can be carried out with the motive of increasing value but the overall goal is to increase value while mitigating risks.

Asset management at Crypto Smart

Remember, on a traditional level, the concept is ever evolving and currently, there is an evolution in financial services.

The evolution of blockchain and cryptocurrency has erupted into another dimension of asset management which is digital asset management.

This is the management of crypto assets.

Crypto Smart is a digital asset management company that advises individuals and companies on the best digital assets to acquire.

Not only that:

  • When is the best time to acquire these assets?
  • What volume should be acquired?
  • When should the assets be sold?

All these are carried out by analyzing both micro and macro aspects of the economy at a point in time.

The client’s acceptable level of risk and cash flow will also be considered in the analysis process.

The cash flow aspect includes the cash requirement of the client and the periods to be covered.

In simple terms, Crypto Smart helps individuals and companies to profit from the crypto market without going through the hassles of trading and performing tedious analyses.

Apart from the tedious analysis (technical analysis), you will not need to be monitoring crypto news and updates (fundamental analysis) as all these will be carried out by Crypto Smart.

How does this work?

Crypto Smart, through its analysis department, will advise on the best crypto asset to be acquired depending on the amount.

As highlighted above, the amount is not the only basis, level of risk will also be analyzed.

How can I get started?

Sign up for any of the asset management plans here, schedule a meeting by sending an email to onyeka@cryptosmartnow.io

NB: Crypto Smart can also set up a trading department for your company and train your staff. Training will be centered around analyzing the market and developing strategies and models.

Did you miss any of these?

You can read how to diversify your crypto portfolio here:

How to diversify your crypto portfolio

Is there any plan for Africa to de-dollarize? Check out below

Fiat vs Bitcoin and Africa plan to de-dollarize

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.

Crypto Smart offers fast and secure services which are based on a well encrypted system with 24/7 customer support services. Crypto Smart 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 offer blockchain products which includes SmartChange, a crosschain P2P marketplace, Bitsave Protocol, a SaveFi protocol that combines savings with DeFi. 

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