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A high, stable return with little risk: it is the liquidity fund for BlockchainTraders in a nutshell. This fund is a new and promising investment product from the company that Justin Kool and Michiel van der Steeg founded in 2018. “You can compare BlockchainTraders with a traditional asset manager, but in the new world of cryptocurrency,” Kool said. With this new fund, he expects to achieve a return of at least 15 percent this year.

Jeroen Kreule

March 15, 2022

Blockchain Traders image2 Entrepreneurs

Invest with BlockchainTraders. The Dutch cryptocurrency investment fund. Photo BlockchainTraders

With the new investment product, Kool and Van der Steeg are responding to a new development in the blockchain ecosystem: Decentralized Finance or in short DeFi. Blockchain is a technique that enables a network of users to jointly maintain a database of transactions. The database is a chain of blocks, the blocks consist of approved transactions. DeFi makes it possible to make financial products such as mortgages or loans available to anyone outside the traditional system. Kool: “No bank or intermediary is needed, which means interest rates are low and costs are limited.”

Extraction of liquidity

According to Kool, the new fund achieves returns by using Liquidity Mining. A Luiqidity Miner – such as BlockchainTraders – receives a certain commission (interest) to provide liquidity. The specialists at BlockchainTraders use complex strategies to continuously move their liquidity between different DeFi applications. Kool: “We moved it between these applications to minimize risk and maximize returns.”

DeFi applications, for example, ensure that people can borrow money in a decentralized way, but also that they can exchange money in a decentralized way (for example, from dollars to bitcoin or vice versa). Kool: “We do not borrow bitcoin or ethereum, but work with stable coins. Stable coins are cryptocurrencies with a fixed price ratio of one US dollar or euro: they are linked to each other. An increase or decrease in the price of bitcoin, for example, has no effect on this fund. In any case, this means that it is a risky way to invest with a good return. ” Kool therefore calls it a nice addition to your investment portfolio. “Especially now, with the uncertain, politically unstable situation in the world.”

“The bottom line, at least, is that it’s a risky way to invest with a good return.”

Justin Kool, founder and owner of BlockchainTraders

Skilled

Justin Kool and Michiel van der Steeg founded BlockchainTraders in 2018. They had already gained experience in trading cryptocurrencies, participating in ICOs (Initial Coin Offerings) and mining cryptocurrencies. The two proved to be very adept at it. In fact, they achieved such high returns that many asked if they would invest on their behalf. With the profits, they decided to establish their business. BlockchainTraders is registered with the Dutch Financial Markets Authority (AFM) and has its office in Apeldoorn. Currently, five people work there.

They launched the BlockchainTraders Growth Fund in 2018. This fund benefits from the growth and mass adoption of the blockchain by investing in cryptocurrencies. Kool: “Unlike the Liquidity Fund, the Growth Fund moves with the crypto market.” It is a directional investment product and is more risky, but the return is also higher. “

Spread of risks

However, BlockchainTraders has a strategy with Vækstfonden, where investments are spread as much as possible. “We will keep half of the amount invested in the long run, with the other half of the portfolio we will actively trade: bitcoin and ethereum, but also other lesser known cryptocurrencies.” With this strategy, investment risks are limited while being optimal responses to trends and developments.

many entrepreneurs

About 90 percent of the customers are entrepreneurs. Participants must invest at least EUR 100,000 per fund in accordance with AFM rules. The specialists at BlockchainTraders monitor the crypto market 24/7, Kool said. “We follow the news and are aware of all rules and technical analyzes. We know how many cryptocurrencies are in circulation, how much is being traded. In other words: we have the full overview of the entire development.

” We also see our investment products as an addition to the traditional investor’s portfolio ”

Justin Kool, founder and owner of BlockchainTraders

Personal contact

The employees of BlockchainTraders know all customers personally. Kool: ,, Before they start working with us, there is an introductory meeting. We explain our strategy and point out the risks. We keep customers informed about their portfolio every two weeks, what the development is and how we handle them. In addition, all customers have their own portal where they can see the value of their investments in real time. ”

Mainstream

Kool claims that cryptocurrencies are becoming more mainstream. ,, We also see our investment products as a complement to the traditional investor’s portfolio. Many traditional investors are still very hesitant, but the impact of cryptocurrencies in society will only increase in the coming years. For companies, wealthy individuals and ultimately also institutional parties like pension funds. We are happy to answer that. ”

More information

To learn more about the Liquidity Fund or the Growth Fund of BlockchainTraders, see www.blockchaintraders.nl

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