The latest fintech company to enter the global cryptocurrency investment market has opened for business in the UK this month. Revix, backed by listed investment group Sabvest, is positioning itself as a long-term and more responsible investment platform. Words that inexperienced and seasoned investors alike, don’t hear very often from companies in the crypto space.
Founded and headed by renowned South African fintech experts, Sean Sanders and Louis Buys, Revix enables customers to invest in diversified ‘Bundles’ of cryptocurrencies which provide exposure to the broader cryptocurrency market, similar to a traditional mutual fund or ETF, instead of betting on single cryptocurrencies.
“In much the same way as the traditional finance market is seeing more capital flowing into low-cost passive diversified funds, Revix aims to bring the same concept to the cryptocurrency world by cutting out the middleman and giving clients diversified control over their investments,” said Buys.
In doing so, Revix says it enables users of their platform to build a diversified portfolio, consisting of more than 85% of the global cryptocurrency market. Furthermore, Revix employs proprietary technology to plug into global exchanges and utilises a smart pricing algorithm, which seeks out the best available pricing for investors on reputable exchanges.
“Revix’s Crypto Bundles contain many of the most well-known cryptocurrencies like Bitcoin, Ethereum and Ripple, and are automatically rebalanced every month so that the Bundles evolve with the market,” Buys added.
“Investors can invest as little as £30 directly from their bank account, which makes the platform attractive to the everyday investor. Revix offers three Bundles that have each outperformed an investment in Bitcoin alone on an annualised basis over the last three years” stated Sanders.
Even after the recent pull-back, the crypto market is still up over 100% year to date with bitcoin leading the 2019 upswing. Analysts now anticipate a rapid game of catch-up in alternative cryptocurrency prices, given the more than 90% decline in many well-known alternative cryptocurrencies such as ethereum, ripple and bitcoin cash since the cryptocurrency mania in 2017.
To date, a lack of UK regulation has also proved to be a stumbling block to investor confidence. A poll conducted earlier this year by market research and polling agency D-CYFOR indicates that 93% of Britons are aware of Bitcoin, yet volatility in the cryptocurrency market has seen caution and a degree of scepticism from potential investors.
However, Sanders argues “despite the high price volatility, cryptoassets provide a near unmatched return opportunity for long-term investors who are willing and patient enough to ride out the short-term fluctuations in price.” He continues, “adding cryptoassets to a traditional stock also offer attractive diversification opportunities for most retail investors, since the returns of traditional investments have no statistical relationship to cryptocurrencies.”
In simple terms, if the stock market collapses, housing market stumbles, or pound slumps, cryptocurrencies will be unaffected as the drivers of returns and asset values are different.
“As with all asset classes, the potential for a bear market may appear to take the shine from cryptocurrencies such as bitcoin, so it’s vital to diversify your crypto investments and important to take a long-term view, as markets continually fluctuate and balance out,” says Sanders.
Sanders points out that periods of low returns are always a concern and that people tend to panic when markets sell-off. Moving one’s investment to a less volatile asset class may seem prudent, but the reality is that it’s important to stay the course. As the old adage goes, it’s not about timing the market, but about time in the market.
“Cryptocurrencies should be viewed in the same way as other investable assets such a property, stocks and bonds and not as a ‘get rich quick’ solution. Investors are correct to be cautious, but we believe that the clarity and transparency that Revix provides will entice more Britons into what, up until now, has been a relatively fringe investment arena. Now that the price is down, the market is even more accessible, particularly for first-time investors,” says Sanders.
Revix says it also aims to dispel perceptions of smoke and mirrors when it comes to investing in cryptocurrency, through financial education and support. By providing continual investment guidance, Revix hopes to show a new generation of British investors that the asset class is far less complicated to buy into than is generally thought.
“It’s important for new and prospective investors to understand that Revix provides prudent, long-term investment opportunities. We are not in the business of giving false promises or humouring ‘get-rich-quick’ mentalities.”
Revix provides further assistance, particularly for less experienced investors, by rebalancing users’ Bundles at the start of each month. In doing so, the investment platform is able to protect users from additional risk, while aiming to maintain the expected level of asset allocation within portfolios. Revix hopes to make the evolving cryptocurrency market a more inclusive long-term investment option.