You’ve probably read in the news how Bitcoin recently set an all-time high in value of over $7,000 per bitcoin when just a year ago each one was worth less than $1,000. Or you may have seen stories about certain cryptocurrencies increasing over 20 times in value in this year alone. To the typical investor, this may seem like the wild west and be entirely intimidating, which can lead many everyday people to avoid the cryptocurrency market because of the volatility and difficulty in entering it in the first place.
For instance, if you stop 100 people on the street and ask them how to buy a bitcoin, probably less than 5% of them would be able to tell you how it’s done. And you’ll get a lot of conjecture from the rest. So then, how are casual investors and people who don’t have computer science degrees supposed to invest in a market that is undeniably hot and producing returns?
Well, the folks over at Vaultbank think they have a solution.
Getting into the market
The act of purchasing a cryptocurrency can involve multiple steps, different websites, long wait times for deposits, and some anxiety over the validity of the groups you’re using. But that’s because there are so many exchanges selling coins at varying prices and there are hundreds of different coins that the typical investor wouldn’t recognize.
Additionally, you’re hoping that the returns we’ve been seeing in the cryptocurrency space will continue to happen. But what about more conventional, stable investments? There are a few less risky investments that you can make with cryptocurrency that can still pay great dividends.
To reduce these barriers and offer a more secure investment, Vaultbank has teamed up with Ambisafe to create a secure and simple trading terminal and exchange called Vaultbank Exchange, with industry low fees. This technology could change the cryptocurrency world as it makes investing in ICOs easier, more cost efficient, and faster than ever.
Vaultbank will be ICOing a new token, Vaultbank Token, that will act as an investment in their entire business and fund. 80% of the ICO funds raised will be invested in a secured loan portfolio, fueling the quarterly dividends. This will be the first asset-backed token to pay quarterly dividends. Vaultbank’s portfolio managers and Board of Directors have over 100 years of combined banking and investment management experience. Vaultbank, through its token, will also be creating liquidity while delivering hedge fund returns, but with no minimum investment. The Vaultbank Executives and Board Members experience include BlackRock, Portfolio Financial Servicing Corporation, GE Capital, Bank of America to name a few on the finance end; combined with successful ventures in Blockchain businesses including Ambisafe, and worldwide payment solutions including Gyft and Volopa debit MasterCard.
As I mentioned above, a problem that isn’t unique to cryptocurrency, is the access to your invested funds quickly and easily. Most funds require a lot of paperwork and time to allow you access to your money, and in some cases, high fees for early withdrawal penalties. This then forces most people to have a delineation with their money: their liquid assets and their illiquid assets. But Vaultbank thinks there shouldn’t be a separation.
Using blockchain technology and a distributed ledger, Vaultbank will provide a debit MasterCard that will give immediate access to the invested funds whenever the investor wants to access them. Just to note here, there are some accredited investor requirements that may affect this access in certain jurisdictions. But this means most people will now be able to experience the yields of a hedge fund but with the convenience of a checking account. Meaning, for the first time ever, an asset backed security will be able to be used as a tender for everyday purchases.
And because the blockchain expedites and improves on almost every aspect of portfolio management, the excessive and high fees that are typical in the investment world will be significantly lowered for their users.
So yes, investing in cryptocurrency is possible and it doesn’t have to be as daunting as it seems. Who wouldn’t want an asset backed cryptocurrency which is professionally managed and offers quarterly dividends and token price appreciation? If you’re interested, you can check out Vaultbank’s ICO that’s starting on December 5th. You can find out more about it on their website.
This article was originally published on The Huffington Post on November 3, 2017.