An investment program is a separate part of the real investment portfolio of Crypto-Capital Bank formed out of investment projects grouped by sector, regional and other criteria for management convenience. The investment program is a holistic management entity in which the portfolio diversification method is efficiently used. The criterion for selecting the investment preference of an object is a generalizing feature of advantages and disadvantages of investing into separate directions from a particular investor’s point of view. In the process of studying these features the following are being formed:
- investment prospects level of certain branches of the financial flow;
- investment prospects level of individual real projects;
- investment prospects level of certain financial (stock) investment instruments, etc.
Having formed the investment environment as a set of economic, financial, and legal conditions Crypto-Capital Bank applies a diversification method as the distribution of the portfolio's shares with the expansion of the profitability level and volatility percent stabilization. Conservative investment policy is applied here and it is aimed at minimizing investment risk as a prime objective. The form of this policy implementation is the formation of a conservative investment portfolio using a single digital currency Bi2Coin as a financial instrument and a capitalized asset. The formed investment program offered by the Crypto-Capital Bank Service allows using the portfolio assets in more than two hundred different strategies as to investment class. Directions at the program diversification are: investment funds and crypto-currency assets, options, gold and currency futures, raw materials and intangible assets, securities as well as venture investments and cooperation with new projects. When determining the investment prospects of an investment object, some of the portfolio diversification directions have the status of high-yielding as well as risky ones. In order to ensure security of investments, a reserve fund for each share of the portfolio, CCB, was created and it ensures the return of the assumed risk percentage with no return of a part of the investment in this direction. The program offers investment with a minimum period of portfolio share operation of 30 days with the total interest rate from 1.3% per day.
A banking program offers a universal method to ensure profitability with minimum investment within a short time. Crypto-Capital Bank applies "Banking portfolio" strategy not only in relation to bank assets but also to liabilities. In particular, a notion of "Deposit portfolio" is being singled out, which is a balanced flow of operable funds of alternative investments and assets as securities that also guarantee stable percentage of receiving funds liquid flow by capitalization.
The notion of a short-term deposit is formed here; these investments have stable return and demonstrate low level of the risk-return ratio.
The main portfolio deposits are individuals (customers) and other financial institutions as well as funds.
The specialized institution of Crypto-Capital Bank manages portfolio capital primarily in the stock market and other capital markets as an institutional investor that does not directly invest in industrial production, agriculture, and other fixed-income areas, but invests in securities of the companies operating in the real sector of the economy.
The program assumes investment for the period of seven to twenty-one days with the fixed interest rate of 0.5% per day and has the status of a riskless portfolio transaction.
There is no concept — the larger investment amount, the higher interest rate is — it is the investor's relevant error made in many investment projects. Economic calculation implies a single allocated interest rate that is a fixed charge on the investment amount; the interest amount can depend only on the type and class of the investment pattern.
There is no concept that the investment principal amount is non-refundable, that is, the principal amount of investment is included into the amount at payment of the interest. The investment project shall not only repay the investment separately from the interest accrual on this amount but also guarantee the investment safety. If the project is really an investment one, then part of the income from this activity must necessarily form a reserve insurance fund in order to guarantee the client investment safety.
There is no concept of diversification as asset distribution in one direction with a different concept of an object name. That is, if you are offered an investment method using diversification, let's say in a cryptocurrency asset directed at trading at different purchase/ sale objects – this is not the given method. Proper diversification is the asset division into fractions with investments in various areas of activity, from trade to gold, securities, and real estate.
There is no concept of investing without understanding the methodology of work and emergence of activities profitability percentage. The investment project is required to disclose to a potential investor the essence of the strategy, the portfolio classification and the arrangement of the operational cash flow incorporating the understanding where the percentage accrual is taken from in this particular range.
The investment project shall arrange for the investor to receive an invoice containing mandatory information about the company, the investment amount, time, interest and commission accruals.
1. Diversification and risks
Diversification is one of the operation foundations of Crypto Capital LTD, which minimizes the risks. This concept implies investment distribution in various directions to significantly reduce the risk of loss and improve the revenues return. The most efficient investment class often changes and the difference between the best and the worst investment offers can be quite significant, while a diversified approach ensures that part of your portfolio will be in the right place at the right time. The major criteria for portfolio diversification:
- combination of investments by selecting various branches of the issuer;
- investment distribution between the companies located in different geographical areas (countries);
- investing in companies with highly diversified own securities portfolios or with the high degree of production diversification, etc.
Diversification reduces the risk and increases the returns if the portfolio is distributed in completely different directions and classes of investment. A wide range of the investment market guarantees stable profit and protection against losses.
No one can predict tomorrow winners but the portfolio distribution in a wide range of investment classes provides for the best result when stability is achieved.
2. Operational assets distribution.
Operational assets distribution is the activation of a block of your portfolio with its division into fixed fractions (diversification) to work in certain investment directions. The division and approval of investment amounts is an alternative type to select strategy and risk management. It depends on the variable combination of the main classes and investment criteria, market opportunities (profitability), investment terms and risk being estimated by the special financial management department of Crypto-Capital Bank.
3. Ratio of portfolio yield parts at asset allocation
The total Investing profitability makes up from 30% per month. The selection of investment projects is made so that the liquidity percentage satisfies the client's needs as much as possible. The investment financial strategy takes into account the risks of high-yield projects and distributes the investment portfolio into 10 or more parts, maximally diversifying the asset in certain areas with a reliable level of risk-yield ratio. Thus, yield percentage is set individually for each part of the asset and it depends on the investment conditions.
4. Investment program terms at portfolio asset allocation.
The life of each asset fraction in your portfolio depends on the definition of the investment criteria and the conditions of the programs defining the range of the asset class, as well as the chosen diversification strategy. The maximum period of the asset fraction operation in Investing is 90 days; the minimum investment of one fraction is up to 30 days. Your asset distributed into parts operates spectrally to the investment market system and the life of each part will be individually determined. At the same time, the portfolio fractions allocated to the branches with minimum operation period will be returned before the end of the investment period, the rest will continue operation according to the terms determined by the investment conditions.
5. Reserve fund
A reserve fund is an insurance fund for your asset consisting of a part of the income formed as the result of the operation of investment general financial module of the Crypto-Capital Bank. The reserve fund is created to provide insurance reserve for the client's assets as percentage and it depends on the risk class of the investment part. The reserve insurance fund is formed and estimated according to the assumed strategy determined by the investment risk management. Thus, each fraction of the investment is insured against the possible risk of loss. The asset will be restored and transferred to the general portfolio, should a part of the asset in a certain project receive the status of non-refundable one.
6. Definition of the investment object by Crypto-Capital Bank's risk management
- Most stable
The yield of the portfolio fractions is from 12 to 18 percent per month (they include investment funds and foreign-exchange holdings, securities, venture investments, short-term depositories, raw material resources, and certain investment companies that adhere to a conservative investment strategy).
- With medium risk
The portfolio fractions profitability makes up from 15 to 30 percent of yield per month. This is investing in mutual investment funds, hedge funds, various company shares and other investment offers able to provide the above yield interest rates.
- With high risk
The portfolio fractions profitability makes up above 30% per month. This is investment in foreign exchange market, cryptocurrencies market, options, trading, ICO, PAMM accounts, electronic codes.
7. The concept of Crypto-Capital Bank management and its tasks
Crypto-Capital Bank Financial management is the management of monetary relations system expressed in income determination (monetary funds and resources), control over the efficiency of the named processes.
The financial management is aimed at ensuring the formation of the financial resources amount necessary to ensure the intended activity;
- ensuring the most efficient use of financial resources;
- money turnover optimization;
- ensuring sustainable growth of economic potential;
- target profitability maintenance.
Strategic management of Crypto-Capital Bank is the process of determining interaction of Crypto-Capital Bank with its environment expressed through the use of the selected goals and achievement of the desired result by allocating resources in line with an efficient action plan.
Strategic management tasks:
- allocation of resources in the most efficient way for the yield development;
- implementation of the functions of planning and monitoring the strategic goal implementation;
- definition of the most perspective directions of the company's development.
Crypto-Capital Bank risk management is a system of risk assessment, risk management, and financial relations arising in the course of work. The aspect of the market economy is that its financial future is unpredictable and little predictable. Risk can be managed through a number of measures that allow predicting the occurrence of a risk event to a certain extent and taking timely measures to reduce the level of risk using an asset diversification strategy.
- Options and trading
Crypto-Capital Bank invests in more than 45 projects that offer more than 96 types of assets and a wide range of currency pairs, securities, indices, as well as exchange commodities for trading. The selection analysis is based on payments and refunds ratio, in the case of a loss-making transaction: a broker is selected, who pays a maximum of 50% of the funds invested in the transaction in the event of its unfavorable outcome. This approach guarantees a return on investment of up to 100%, part of which falls on the insurance reserve fund of Crypto-Capital Bank.
- Gold and foreign currency futures
Crypto-Capital Bank trades in futures using a tool for earning money on exchange rate, which gives access to a large number of trading instruments and allows significant diversification of its assets portfolio. The futures market is very popular – it is quite liquid and the underlying asset is not purchased at the stock but only a contract for it at a price that is substantially lower than the cost of the underlying asset. The case is about collaterals for guarantees. This is a kind of pledge charged by the exchange. Its amount varies from two to ten percent of the value of the underlying asset and is returned at the end of the obligations; the risk of investing in futures is not significant and is guaranteed by the CCB reserve insurance fund.
- Venture investments, funds and cooperation
Crypto-Capital Bank practices investing in start-ups and has been working with general (major) partners for more than a year. At the moment, this branch of diversification suggests investing a part of the portfolio into the venture investment fund activities. Such partnership is called limited and operates on the rights of a contract concluded with the fund, which gives the investor the opportunity to receive a part of income from the developed business of a young company, as well as a reward in the form of interest for assistance in managing the company. The interest rate is being stipulated when investing into each start-up of Crypto-Capital Bank and is about 15-18% at each new short-term investment fraction. This type of the asset diversification has a relatively low percentage of risk and is guaranteed by the CCB reserve insurance fund.
Investments in a cryptocurrency are now holding one of the leading positions in the financial market. Constantly growing demand confirms the cost-efficiency of a profitable investment asset. Market capitalization is already over $ 100 billion. Bitcoin rate as of the most liquid currency has increased by more than several times just for the past 12 months. For its clients, Crypto-Capital Bank allocates a portion of the portfolio asset for investment in a product combining the most popular cryptocurrencies – bitcoin, etherium and lightcoin. The diversification allows using the potential of three crypto assets at once, minimizing the excessive volatility of each of them. Based on work experience and risk management analysis, this type of investment is risky and in the event the asset is not being returned by the investing entity, it is fully covered from the CCB reserve fund.
- Investment funds and foreign currency digital assets
Crypto-Capital Bank points out specialization in the macroeconomics of the digital assets currencies and investment funds, which pay special attention to the assets’ "liquid exchange" as one of the types of diversification. Investments in projects forming funds have been arranged and practiced for more than a year. This type of investment is liquid, with moderate risks and a stable yield level, where part of the portfolio asset is maintained and guaranteed by the CCB insurance fund.
- PAMM-accounts, block code, electronic code
Investments in PAMM accounts are considered to be quite risky and represent an association of traders collected at a particular website for managing and trading with the investors' funds primarily in the Forex market. Crypto-Capital Bank management has analyzed the risks and profitability of more than a thousand PAMM accounts and websites providing this service, the yield level remains at its peak, with portfolio diversification for eight or more different investment fractions, separately from the investment into the PAMM account. CCB has several projects it cooperates with on investments in electronic code and block, a network of innovative products. The investment is short-term with reliable payment of income, which is verified by more than ten months of cooperation.
- Securities, short-term depository
Crypto-Capital Bank works with a portfolio of securities in investment funds with a short-term depositary and stock exchanges outsiders in the world of online brokers. This is like short-term bills of exchange, bonds, equities, and electronic certificates, shares with preferential transactions, warrants and other equity instruments of the stock market. This type of diversification is the most stable, with the minimum of risk strategies for the asset.
- Hedge funds
Crypto-Capital Bank investing into hedge funds implies funds allocation not only in equities and bonds, but also in derivative financial instruments – derivatives. Hedge fund is an investment financial product that pursues the goal of making profit regardless of the situation in the financial market and uses various financial instruments and methods (for instance, derivatives, shorts leverage, or short sales) for this. For this type of investment, Crypto-Capital Bank has used investment projects to a greater extent in the Western countries, focused on obtaining small but stable profits with minimal risks.
For each potential investment partner registered at Crypto-Capital Bank platform, the CCB management department individually lines up a range as to the diversification class at portfolio allocation. The "Invest" program grants the client access to the personal settlement consulting center with detailed diversification of the investment portfolio in the context of alternative strategies, with detailed financial information on each fraction and allocation in an individual class of the investment direction.