Investing in cryptocurrencies today is an extremely difficult and a intensive process. Exchanges require KYC authorization which can take hours (if not days) to validate. Coinvest will bypass the KYC process as there is no exchange in fiat currency, assets, and as the Coinvest smart contract is the custodian of your deposited funds.
Securely storing cryptonized assets is imperative but not trivial. Some coins and tokens have different standards and require different wallets. As a consumer, you have to choose between different wallet options (such as hot, cold, paper, etc.) depending on your risk appetite. Storing assets yourself is feasible for some; however, complicated and risk hacking and user-error. With Coinvest, there will be no storage of investment assets as all portfolios are completely digital.
Prices in cryptocurrency can be extremely volatile. Acquiring assets at the wrong price and time can be the difference in gains or losses. There are currently limited investment options that empower users to execute flexible buying options such as shorting and price limit orders. Coinvest will be one of the first in the industry to offer this functionality.
Unlike current exchanges, Coinvest will offer index funds containing a portfolio of cryptonized assets related to components such as market capitalization, industry, etc. The index funds will enable users the ability to invest without individually and actively purchasing assets themselves. Meanwhile, providing broad market exposure, low operating expenses, and low portfolio turnover.
As of March 2018, there are no investment vehicles that enable investors to curate and invest in an index of cryptonized assets created by themselves. Current investment, index, and mutual funds are managed by third-party asset managers and offer no flexibility and control of the fund itself. Personal curated index funds on Coinvest will empower users to control the assets, distribution percentages, rebalances, and withdrawals of their own individual fund.
- Decentralization and Security
Investing in cryptocurrencies require sending funds direct to an exchange or investment fund (which inherently creates centralization and high risk as they are the custodian of your funds). Coinvest will not accept any funds (fiat, cryptocurrency, etc.) or payments direct from users. User funds will be held in escrow and controlled by the Coinvest autonomous bot (computer code) within a smart contract in the Coinvest protocol. Users will be able to withdraw funds or close their positions at any time and obtain distributions automatically via the Coinvest smart contract. The Coinvest investment process will require no human involvement or interaction.
- Backed Collateral
All investments made through the Coinvest platform will be backed by the cryptonized assets themselves. To ensure liquidity, Coinvest will employ two reserves. Investments will only be executed based upon available assets in the reserve, ensuring the security of all users. A percentage of company revenue will be allocated for additional purchases to increase liquidity and scale the reserve in relation to growth.