If an investor has no experience with crypto assets but wants to start making money on them, the best solution is to use cryptocurrency funds. They are analogous to conventional exchange-traded funds. 

If cryptocurrencies show growth, so does the profit. But you need to study the situation very carefully, as there will definitely be periods of decline. Therefore, you may need to consult an investment specialist.

Which crypto funds are considered the most promising today?

Before investing, study the reputation of a particular fund in the market. The largest among them are the most reliable:

  • Bitcoin Investments Trust;
  • Blockchain Capital.

The fund acts as a link between investors and traders.

At the dawn of its formation, everyone invested in mining. But there are many other ways to make money on crypto. Since cryptocurrency mining requires large-scale investments, it is worth considering investing in a crypto fund as an alternative.

Starting your own crypto fund

You can also consider this option. You need to decide on the type of fund. There are only two of them: a hedge fund and a mutual fund.

What do you need to conduct legal activities? You need to go through the business registration procedure and obtain a license.

The Baltic countries and Liechtenstein have good conditions for opening a crypto fund. But you can go beyond Europe. 

Advantages of Estonia for establishing a crypto fund

For example, Estonia has a very liberal economic policy, low corruption, and loyal taxation. It is very easy to keep records, and the authorities in this country are not wary of cryptocurrencies. 

What about Liechtenstein?

The use of tokens is legalized in economic and financial activities in Liechtenstein. 

Despite its tiny size and small population, Liechtenstein has long had a friendly reputation as a business-friendly jurisdiction, especially in the financial services industry. Banks and headquarters of large law firms are located here.

There is a plan to legalize bitcoin in Liechtenstein to pay for government services.

Is it possible to buy a ready-made crypto fund?

Yes, it is possible. As for the jurisdictions, in addition to those listed above, you can consider the Czech Republic and island states, such as the Caymans.

Analysts believe that in the future, crypto funds may kill venture capital funds. The main prerequisite for this is the blockchain. The speed of decision-making in crypto funds is higher than the classical ones, such as the speed of entering a project.

There are no borders in the crypto economy, the country of the project does not matter. The increase in data volume and the multipolarity of the world will increase interest in crypto funds, and venture capital funds will fade into the background.

What should a novice investor do now? Find a specialist who will not only register your project but also support it after the launch. Especially if it is your first venture. It is natural that you will have questions. 

Water does not flow under a rock. To feel confident, get support, study cryptocurrency courses and relevant literature. As you gain more practical experience, you will easily be able to give advice to novice investors.

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