Crypto Provides Lucrative Opportunity for High-Net-Worth Individuals

The following post was written and/or published as a collaboration between Benzinga’s in-house sponsored content team and a financial partner of Benzinga.

Photo by Dmitry Demidko on Unsplash

In its infancy, cryptocurrency was almost exclusively the domain of engineers and programmers. They were largely motivated by ideology and an almost religious belief in decentralization. Then came the extremely risk-tolerant investors willing to bet on an unproven market with the hope of striking it rich. And to be sure, many did just that. 

This wild west atmosphere kept many high-net-worth investors (HNWIs) and family offices from investing early. However, the market has matured. 

A Changing Market

Just 3 years ago, the total market capitalization of all cryptocurrencies was around $230 billion. Today, that number is over $2.2 trillion.

Institutional investors have taken notice. According to Bloomberg, over $17 billion of institutional capital has been invested this year alone. A survey by Nickel Digital Asset Management showed 82% of those investors are looking to increase their exposure in the next 2 years.

A Growing Infrastructure

Now that the market has proven itself worthy of large-scale institutions, many HNWIs are looking for exposure as well. Traditionally, one of the largest barriers to entry for these investors has been the lack of infrastructure. 

HNWIs have many more complications in investing their assets than do retail investors. Tax complications, estate concerns, security issues, and unsophisticated trading tools have kept many from diving in. These are quickly becoming non-issues as a host of companies have stepped in to bring solutions to the market. One of these innovative solutions is automated trading software, or “bots.”

Time is Money

HNWIs have diverse portfolios with investments across many different sectors. Their time and attention are the most valuable asset they own. The crypto market moves at lightning pace, and staying ahead of it requires constant attention and a lot of time — a resource many of these investors don’t have. Enter bots.

These bots manage your assets 24/7 and free you of the need to constantly monitor the market. They integrate into trading platforms like Binance or Coinbase and trade your assets on your behalf based on rules and parameters set forth ahead of time. 

While trading bots have been around for years, their level of sophistication has increased and reached service levels desired by HNWIs. Some of these are: ultra-low latency dedicated servers, use of advanced technical indicators and integrations with platforms like Tradingview.

This may sound overly technical to some, but one company aims to solve that. Coinrule, a leader in the space, has created a bot with usability and accessibility in mind. You can choose from a host of preset rules created by their team or set your own. It makes automated trading easy and allows you to focus your attention elsewhere, maximizing the return on your most valuable asset — your time.

As the infrastructure barrier to entry is lowered, more HNWIs and family offices are poised to enter the market. From automated trading software to Tax assistants, these evolutions have been creating the conditions for a more mature market.

The preceding post was written and/or published as a collaboration between Benzinga’s in-house sponsored content team and a financial partner of Benzinga. Although the piece is not and should not be construed as editorial content, the sponsored content team works to ensure that any and all information contained within is true and accurate to the best of their knowledge and research. This content is for informational purposes only and not intended to be investing advice.