Frequently Asked Questions

What is Index?


What is Cryptocurrency?

 

How can I passively invest in cryptocurrencies?

Investing in cryptocurrencies can be volatile.  The annualized volatility of Bitcoin, Ethereum and Litecoin is (60%, 120%, 115%).  And these are the big three, the volatility of second tier coins is even higher.  Given the tremendous volatility of digital assets, Cryptomover is proud to introduce the leading index in the cryptocurrency world.

Our award winning Cryptomover 3 and Cryptomover 10 indexes allow customers to track the majority of the liquid investable digital asset without the hassle of owning individual wallets and worrying about individual price fluctuations.

 

What is an index fund?

An index fund is a type of mutual fund with a portfolio constructed to match or track the components of a particular market, such as the Standard & Poor's 500 Index (S&P 500).  In the digital asset world, the Cryptomover 3 and Cryptomover 10 Index tracks cryptocurrencies.  An index mutual fund provides broad market exposure, low operating expenses and low portfolio turnover.

 

Why do we believe in indexing?

The indexing trend started in the late 1990s when well to do investors found that they were able to generate market returns with very low fees.  When done properly, an index fund can help investors obtain a globally diversified portfolio.  

What is the magical method?  Indexed investing replicate a market, and such funds buy a representative sample of securities in order to come close to replicating a target market.  We believe that should be the method of investing for the cryptocurrency world.  Compared to active investing, where individuals have to pick specific cryptocurrencies to invest in, passive investing in our index is a dull and cheap way to invest in a cocktail of cryptocurrencies without having to worry about financial and crypto jargons.

The bottom line is that it is simple to invest in a passive strategy like ours.  What we have done is replicated the traditional investing world and adapted that to the new world of digital assets in our proprietary way.

 

Why invest in altcoins and not just bitcoin?

Diversification.  We sincerely believe that we don't know which currency will win the digital asset race.  By investing in a basket of currencies, investors benefits by the beauty of diversification.  As certain digital asset technologies become popular, our index weighting will reflect this popularity.

 

What is an index fund in digital currencies?

The Cryptomover 3 is an index composed of a basket of three underlying mineable popular digital assets (Bitcoin, Ethereum, Litecoin).  It is a market-weighted basket of these three digital currencies that would make investing much easier to institutional and DIY investors.  The Cryptomover 3 is designed to mirror the freely traded currencies on GDAX, the world's most compliant exchange and investible by US investors.

The Cryptomover 10 is an index composed of the broader digital asset market.  It allows investors to acquire exposure to a wide portion of the liquid digital asset market in an easily investable index.  The Cryptomover 10 is designed to mirror 80% or more of the investible digital asset market.  

 

I understand indexing, why use the Cryptomover 3 or Cryptomover 10 index?

The learning curve and cost of buying different altcoins in itself is huge.  Especially if one takes into trading cost and security measures needed to hold the individual currencies.  Furthermore, like stocks, it is very difficult to pick winners and sell losers and consistently outperform the broader market.  The Cryptomover funds offer an opportunity to align returns to the broader flows of the market.  If you think cryptocurrencies are the future but are unsure which ones will be winners, these indexes are for you!

 

Why should we trust your index?

We think by being as transparent as possible (our code to actual index calculation is on Github), we can allay the fear of investing in digital assets.  Integrity and transparency are the two most cherished principles of the founding team.  We have an independent compliance and audit team.  Furthermore, we differ from other leading providers in that our indexes are designed by finance professionals with deep investment knowledge.  We want to be the most technology agnostic, fair, and transparent fund and index provider in the digital asset space.

We follow Principles for Financial Benchmarks.

Please read our compliance statement.

 

How risky is to invest in Cryptomover 3 or Cryptomover 10? 

Yes it is risky to invest.  Especially in cryptocurrencies, returns can be spectacular or horrible.  We think a broad index will allow for diversification which allow DIY and season investors to hold a representative portion of the digital currency market. 

 

Should everyone index?

Absolutely not.  In fact, if everyone indexed, the digital capital markets would cease to provide the relatively efficient price discovery needed to fund leading technologies.  If you believe in certain technologies or protocols and can manage the risk of hacks, concentrated investing may be right for you.

 

Should I index?

This is up to you.  We only suggest that you consider the option.  In the long run, this boring approach can give someone more time for interesting activities and academic research has shown over time and time again that it will leave investors with more money as well.

 

Why Us?

Our founders have worked at large financial institutions and technology companies.  We think that we are uniquely placed and have the right set of skills to design indexing service and manage funds associated with these indexes.

 

What is your currency selection process?

Our currency selection process allows investors to gain exposure to the most liquid part of the digital asset market.  In general, we believe that digital currencies will be a significant portion of any asset allocation portfolio and that prices will appreciate as the wider population find more use of these assets.

 

What about rebalancing?

We rebalance the indexes on a monthly basis to ensure weightings are in line with the goals of the index.  Our indexes are market capitalization weighted.

 

What about security?

Obviously, we take security very seriously.  The majority of the funds are stored in cold wallets.

 

How can I contribute?

Invest today!  

 

Where is your code?

Here you go.  https://github.com/CryptoMovers/CryptoIndex 

 

Do you have a Cryptomover 3 and Cryptomover 10 coin?

Yes.  The digital asset tokens are in the form of signed blocks. 

 

What currency do you accept?

We accept BTC, LTC, ETH, CM3, CMX

 

How to stay informed?

Join our mailing list.  Subscribe to our mailing list to get updates and share your thoughts to help us better.

 

Are cryptocurrency markets regulated?

We have divided the major cryptocurrency markets from APAC & Europe, into 3 groups based on the level of regulations-

NOT REGULATED 

Hong Kong

United Kingdom

Australia
Digital currencies such as bitcoin are not regulated by Australian Securities and Investments Commission under the Corporations Act. This means that the business does not need to hold an AFS licence to provide its wallet.

 

PLANNING TO REGULATE

Korea
The Financial Services Commission of South Korean formed a taskforce last year to study possible regulatory frameworks for digital currencies. On 3 July 2017, Park Yong-jin, the representative of the ruling Democratic Party of Korea, released three revisions for the proposed legal framework.


Europe
The EU drafted a law to identify Bitcoin users in March 2017.

Singapore
Last year the Monetary Authority of Singapore (MAS) developed a regulatory framework for virtual currencies . On 21 June 2017, the MAS was considering AML guidelines for the bitcoin industry.

China
Newly drafted regulations were said to be released in June, but then the PBOC announced on 21 June 2017 that there will not be any regulations in anytime soon.

 

REGULATED

Japan
Virtual currency is defined by the following criteria:
(i) property of value,
(ii) usable for payment to unspecified persons,
(iii) purchasable from and sellable to unspecified persons and
(iv) transferable by electronic processing devices

Virtual currency exchange services are defined by the following criteria:
(i)the sale, purchase, or exchange of virtual currencies.
(ii)intermediary, agency or delegation services in relations to the act of (i).
(iii)management of customers money or virtual currency in connect with the acts of (i) or (ii).

Virtual currency exchange services providers must meet certain registration requirements and register:
-applicants
(i) must be a stock company
(ii)have a specific asset base
(iii)have an internal organisation sufficient to pursue its business appropriately and accurately.

However, the following is yet to be classified:
-whether or not the sending of a virtual currency constitutes a “funds transfer business”, which is regulated, and whether or not virtual currency transactions are taxable.

  

© 2017 Cryptomover.com