What is a Crypto Strategy and how does it work?

Crypto Strategies are collections of crypto assets chosen and led by a Strategist. They share the Strategy with other users, allowing them to perform the same changes as the Strategist. 

The Strategists have their own stakes in the strategy, so they’re in the same yacht as you are, making sure you never sink. 

• Copiers

Copiers copy a Strategy of their choosing with their assets. Don’t worry; a copier’s assets are still their own. They can withdraw them at any time, regardless of the structure or performance of the Strategy. 

Whenever a Strategist changes the structure of the strategy, the copier automatically makes the same trades. 

The Strategist does all the thinking, our trading algorithm does everything else. 

• Why copy a Strategy? 

Many users simply don’t have time to manage their crypto investments, as the market fluctuates too rapidly. Successful Strategists take that time. They can lead others to gains or save them from losses. 

In this, diversification is key. Like mentioned, a single asset can fluctuate wildly. Sometimes, it’s better to have a diverse portfolio, so if a single asset drops, the rest of your investment won’t be as affected. 

• How does it work?

When you copy a Crypto Strategy your investment gets diversified across all cryptocurrencies that are in strategy structure.

Let’s take a look at an example to make it easier for you:

Let’s say you invest 100 units (100 BTC or 100 EUR or 100 GBP, etc.) - you add 100 units to copy a Crypto Strategy with a structure (index weights) of:
- Bitcoin (BTC) 30%,
- Ether (ETH) 27%,
- EOS (EOS) 19%,
- Litecoin (LTC) 15%,
- Monero (XMR) 9%

With just one click, your investment (100 units) is diversified into the exact same percentages of cryptocurrencies that are in the strategy structure (30 units go to BTC, 27 to ETH, 19 to EOS, etc.).

• Incentive 

Strategists have their own assets in the structure. Together with that, copiers pay fees which are usually based on the Crypto Strategy’s performance. This means that the Strategist has a monetary incentive to perform. Not to mention, it feels good to spread your knowledge and help other people out with their investments. 

• Is a copier of a Crypto Strategy the owner of the actual crypto assets he invested into by copying a strategy?

The owner of the crypto assets included in the Crypto Strategy structure is the copier. ICONOMI holds and manages all user's assets in their name and on their behalf. The Crypto Strategy Strategist does not have access to those assets.

Please find additional information also in our article Safeguarding of assets.

• Can I create my own Crypto Strategy?

Yes. For more information, please read our article on how to create a Crypto Strategy. We invite you also to check out other materials on the subject: read the "Strategist Information Pack" document and find detailed information in the Crypto Strategies chapter.