It is a dynamic asset allocation tool that represents a model portfolio in crypto-currencies, based on the strategy developed by TerraBitcoin, one of Arkadia’s strategic partner. Since 2017, this strategy represents the diversification at its highest levels, as well as the patient research of those protocols, which can express an important value in the medium term.
At Arkadia, we have a hybrid approach to decentralized finance. Considering the complexity, the riskiness and the countless opportunities that are offered, we have decided, with a view to diversification, to implement two different solutions. A direct one, through a selection of the best and most tested aggregators, where we can stake or farm our cryptocurrencies, and an indirect one. The latter leverages our ability to “scout” the best third-party investment instruments, which can grant us decorrelated returns among the different protocols.
The automated trading (Bot) is a software, which can act independently, based on specific parameters, set by the trader. Due to the process automation the Bot has a supportive function to the trader’s activity, but it will never be a complete substitute. This strategy derives its real value from the elements that characterize the professional, such as many years of experience, knowledge of the market, the ability to control and manage the risk, as well as the selection of softwares and crypto “pairs” to be used, based on multiple factors, including trading volumes and liquidity.
The use of derivative instruments (Futures and Options), managed by experienced traders, allows the hedging of “long” positions of crypto-assets portfolio. Thanks to hedging strategies, it is possible to partially reduce the risk and to optimize the Digital Money Management. The strategic hedging can be used under particular market conditions, which can be recognized with in-depth technical analysis and using specific indicators, or as soon as evident exogenous or “macro” situations appear.
One of the most interesting and, potentially, most profitable sectorsin the Crypto universe, is certainly that of Blockchain Start-Ups, which are not yet offered on the main centralized or decentralized Exchanges (DEX). Despite the “vesting” period of the investment and the lack of liquidity in the early stages of the project, the multipliers are amazing. After the “wild” ICO period in 2017, the access to the most attractive investment opportunities is now reserved to the Venture Capital Investment Funds, which have huge amounts of money and, de facto, operate under an oligopoly regime. The minimum investment thresholds represent barriers to entry, and they prevent the “retail” investor from any possibility of direct access. For this reason, also in consideration of the difficulty and complexity of analyzing fundamental and direct aspects of each token, we have opted for an indirect investment in this sector, through an outsourced partnership with a selected and qualified player.
The Gaming strategy is the new frontier of investing in crypto-currencies. This can range from direct and more speculative exposure to the main tokens of the new and so-called “Metaverse” sector, to an “annuity” investment in the so-called “Play-to-Earn”. The most efficient projects in this innovative and disruptive sector, perfectly combine NFT, decentralized markets, Mining and Farming. The most revolutionary element, however, lies in the management of the token-economics, through the creation of a game. Here, in the world of crypto-currencies, a well-designed game, with prizes for players, can become an opportunity for everyone.