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Cryptoknowmics 2022-05-25 15:30:27

Here’s Why Long Term Crypto Investors Should Disregard Hedge Funds

A traditional hedge fund is a good choice for risk-averse investors as its founder and team of analysts are known to guide their clients’ money in the right direction. Due to the rapid emergence and evolution of cryptocurrencies, the traditional hedge fund industry has become the ideal entry point for investors. Large, influential funds have started to see Bitcoin as a relatively small-quantity asset and have begun taking advantage of its demand. Despite the crypto community’s widespread criticism and dismaying statements, returns from these funds have been impressive. However, long-term crypto investors should think twice before investing in crypto hedge funds. Here’s why: Hedge Funds Lack Transparency A hedge fund can be very appealing to individuals looking for higher returns. However, it can also become riskier for investors with less regulation due to the lack of transparency. Also, with less transparency, investors can be left with the impression that the funds are in proper use, which is not always the case. In recent years, there have been several cases where hedge fund managers have been accused of using their clients’ money for various non-investments. Mostly, the clients do not receive their money when the cryptocurrency trading rules do not go as planned. Another common perception is that the managers of hedge funds are not subjected to the same scrutiny and registration requirements as other financial firms. It co...

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