By the end of the year 2017, Crypto markets were on an upswing and the future looked bright for Cryptocurrencies. Many investors were confident that the momentum would continue gathering steam and that more investors, individual and institutional, would participate in the market. Back then, it was easier for Crypto investments advisors to bring more clients on board.
However, the tides changed in 2018 and the market entered prolonged bear runs. Consequently, XRP is down 78%, BCH has lost 82%, ETH is down 74%, BTC is down 54%, and LTC has shed off 78% of its value. This trend replicated in other Tokens where most of them have fared worse than the ones on the list. Despite the volatility, more investment firms recorded an increase in the number of investors. This begs the question of how they have been able to achieve growth.
Examining Reports From One Investment Firm
New Wave Capital is a leading Crypto investment firm. The company referred to itself as the first Crypto robo-advisor. The management says that not a single account has been deactivated in 2018, in fact, more accounts have been opened and transactions momentum has been on an upward trend.
The firm targets regular investors while ensuring that accredited investors with a net wealth of more than $1 million or an annual income of $200,000 are catered for. New Wave Capital was established in 2016 by former employees of a leading investment firm, Chariot: a shuttle-bus startup that Ford acquired for $65 million in 2016. The former employees of Chariot-Albert Cheng, and Stewart Hauer- brought in a wealth of knowledge and expertise and they have been able to combine efforts with Eric Campbell, New Wave Capital CEO.
New Wave Capital Model Represents Many Investment Firms
CEO Eric Campbell discloses several factors behind the surge in Crypto investments activities, these factors include; increasing number of Cryptocurrencies, focus on smaller Tokens, ICO success stories regulation activities, and many other factors.
There has been an increase in the number of Cryptocurrencies that are being listed in Crypto exchange platforms. For instance. XRP is now available in Yobe, Coinmarket, Coinbase and many other networks that initially refused it.
Additionally, the success stories of Blockchain companies prior to 2017 prompted many investors to develop platforms with native Tokens and most of them have been listed in leading markets. This factor alone is enough to increase the volume of trade in Crypto markets given the diversity of options. However, note that New Wave Capital only focuses on the 13 leading Cryptocurrencies but still achieves tremendous success. Advisory investment firms that offer services for more Cryptocurrencies can yield much better results.
Investors Can Adjust Portfolios For Bear Or Bull Runs Accordingly
Campbell discloses that when the markets plunge, his firm has been advising investors to adopt major Tokens such as BTC that are safer given their resilience against shocks and developed networks. Meanwhile, in bull runs, investors tend to adopt Altcoins since they tend to gain more. Hence, the availability of trading considerations enables investors to hold onto their accounts as they make strategic investments decisions to deal with a given trend.