ICONOMI : Invest in high yield indices from 10€
I’m happy to introduce you to the Iconomi platform because it’s a site that offers something different in the cryptocurrency world. It is clearly for me, the best discovery I have made in a few years. Yes, yes, I am very serious and by reading on, you will understand why, I am sure.
Of all the existing platforms, it is clearly the one that offers the best performing assets to invest in. Also, you can invest from 10€ euros, although clearly with such returns, it is interesting to invest higher amounts. Everything will depend on your financial situation and your objectives.
Of course, the higher the profits, the higher the risk, of course.
Although it focuses on finances as many crypto projects do, the Iconomi project is quite special.
In fact, to sum it up quickly, Iconomi allows users to invest in high-profit indices.
Likewise, it allows anyone to create their own crypto indices, a network of digital assets.
Perhaps most importantly, users can then invest in these digital asset networks and follow the investment strategies of the experts.
The very good news for retail investors is that Iconomi has placed no restrictions on who can invest in their DAA products. Basically, anyone can invest in Iconomi and in fact, it is one of the few sites that accepts so many users from around the world.
The Iconomi team has made the decision to keep access to their funds open as they feel this is part of good mass adoption.
😎 This new paradigm is one in which any individual can benefit from investment practices that were once reserved for the really rich investors.
You tell me, this is the hallmark of the new DeFi companies…Opening up financial instruments to more people possible. Facilitating access to financial tools and the most diverse assets…Yes, that’s how we revisit the financial sector.
Anyway, let’s stop the chatter and move on to the explanation of this platform:
What is the Iconomi project?
ICONOMI is a fintech based in Slovenia, which is a cryptographic digital asset management and investment platform so to speak.
Founded by CEO Tim M. Zagar and CTO Jani Valjavec in 2016, their goal is to facilitate the creation and management of crypto indices. In fact, it’s really the equivalent of an investment fund dedicated this time to cryptocurrencies.
Moreover, the goal is to achieve mass adoption. That’s why anyone can invest in different funds, depending on their own choices.
Basically, when you invest with Iconomi, you are investing in an index fund that groups several cryptos according to the same theme for example.
It’s not a matter of simply investing in one or the other crypto-currency but rather investing in a “pack” of sorts. These indices are created by experts, the goal being to have the biggest return on investment, of course.
What are Iconomi’s digital asset networks?
The funds on ICONOMI are based on digital asset networks (DAAs), which include various combinations of digital assets. Basically, these are investment strategies in portfolios that combine several types of assets. You can also call them indexes as we often do.
This is the first platform created where four generations of digital assets are available.
The four generations of digital assets are:
- First generation – Bitcoin
- Second generation – alt-coins
- Third generation – Utility tokens
- Fourth generation – DAA (DAA’s combine several different digital assets, such as Bitcoin, Ether, Digital Cash, Qtum, Waves, etc).
With the goal of profit at the heart of their investment technology, the company suggests that no matter how you combine your digital assets, a gain is more than achievable.
They say that “DAA can either be diversified to maximize stability of value or refined to aggressively pursue maximum gains,” making the platform a very attractive possibility for those considering investing.
ICONOMI has designed a platform for DAA managers and investors to connect and work together on digital assets.
Thus, on the platform, one can be both an investor, that is, a person who will follow portfolios.
And, one can also be a manager who will create portfolios in which people can also invest.
It is a very simple and intuitive platform to use.
The platform gives DAA managers the opportunity to test and improve their winning digital asset management strategies and share their ideas with the community for feedback and investments. Investors can search through the various DAAs on offer and invest their digital assets in those they find most promising.
If a DAA fund manager performs well on the platform, it enhances their reputation to make them more visible to new investors so they can attract others.
In exchange for exposure to highly reputable DAA managers, investors gain access to proven expertise and guaranteed results.
ICONOMI makes it easy to buy a variety of assets in seconds. As the first platform using four generations of digital assets, it offers users something that doesn’t yet exist and is otherwise quite difficult to do.
That’s why also, this makes it, a very interesting and sought after platform among crypto holders.
What are the benefits of ICONOMI for its investments?
ICONOMI promises ultimate security to its users, as they understand that digital assets require additional layers of security rather than just one. Most of the digital assets that pass through the platform will be permanently stored in multi-signature protected cold Wallets, which gives its users peace of mind in protecting their digital assets.
According to them, the main reasons why you should use ICONOMI for investing in digital assets are:
- Reduce the risk of depreciation: the new economy is moving at breakneck speed, so the value of digital assets can fluctuate rapidly. Making an ACD of multiple digital assets can reduce the risk of depreciation.
- Maintain an optimal mix of digital assets: easy lineup adjustments allow constant reaction to markets for optimal growth.
- Attract affiliates and split the profits: invite others to support your DAA assets and share the profits.
How does Iconomi work in practice?
Essentially, Iconomi works a bit like an investment fund company that works with stocks, keep that in mind.
The only difference here is that the financial assets are mainly crypto assets.
So what you can do on the platform is: invest in strategies or create your own.
These ACDs can be bought and sold easily, with no lock-in or waiting period for withdrawals. Again, this is a great advantage of using Iconomi.
How to invest in Iconomi?
Investing with Iconomi is very easy. The steps are very simple to follow, as you will see.
- You must first create an account on the Iconomi website.
Once this is done, you will have to follow the KYC protocol. As you know, you will have to send your screenshot of your passport. You will not be asked for any other residency papers. That at least makes it much easier to register.
2. Choose a method (buy cryptos or follow a strategy)
Yes, now you have to choose if you want to buy crypto currencies directly in the classic way. Or you can choose, and that’s the point of this platform, to explore different strategies.
For example, you can choose in fact, to follow a strategy posed by a person or create your own strategy.
For example, in my case, I want to invest in a strategy.
So I click on “Strategies” and a table appears with the different indices available.
I can directly see the profits and the related graph. To be sure to invest in an index that will pay off, I click on the most promising one in my opinion.
In my case, I choose “Defi Core”.
Basically, it’s an index that groups cryptos linked to deFI projects (decentralized finance).
So as you can see, we have all the important details about this index.
In fact, we can even find out what this index is made of.
Then, of course, feel free to observe the performance of your index. For example, in my case, I like indices that are fairly stable in their profit rates, over the long term.
See for example, this fund is quite interesting that made 60% to the year. Not bad, isn’t it.
So now I want to invest and go further.
So what I do is I click on “follow strategies”.
Of course, that’s where I have to make a deposit in bitcoin or Ethereum.
You can make an initial deposit in Bitcoin, Ethereum, Euro, Tether or even USDC and just recently support for Euro deposits and withdrawals has been added.
Note: Also, to deposit in Bitcoin, Ethereum or even Tether the maximum is 15,000 Euros and the minium is $10.
Be aware that if you want to deposit in Euro, the minimum is 50,000 euros. That’s why I think many investors opt to deposit in cryptocurrencies.
Once you have made your deposit, you are ready to invest in one of the 29 different strategies deployed on the site.
Fees and security on Iconomi:
Ethereum-powered smart contracts are used to manage investments on the platform, and almost all funds are kept in a multi-signature encrypted storage solution to protect them from risk. So, security-wise, this remains an excellent site.
The initial DAAs were created by leading crypto-currency investors such as Columbus Capital Ltd. and Solidum Capital, but have since expanded to include 29 different DAAs to choose from.
Each also charges its own management fee, typically ranging from 1% to 6%. Some of the DAAs have even been tokenized and can be withdrawn themselves to ERC-20 compatible portfolios. I explain below, in the dedicated chapter, the platform fees.
Each index has its own particularity, you have to select the one that suits you.
How to create your own strategy?
As I told you above, you can certainly follow investment strategies but you can also create your own!
To try, I wanted to create a test fund in which I put according to the percentage below 4 crypto-currencies.
As you can see, it shows me directly how much this set would have gained or lost during the previous month.
This is, I think, an excellent tool to encourage people to create only winning or plausible strategies.
So, when you apply yourself, this is what it looks like:
Here, you can see with these 4 other crypto currencies, how much my wallet would have taken. we type the 35%, I do not tell you how huge it is!
So, if you want to follow or create your own strategies, it’s up to you to focus and educate yourself well on the cryptos in question.
How to make money with your own strategy?
To summarize, on the platform, you can be an investor (what I have shown you so far) and invest in portfolios already built.
Most of the time, you will see experienced investors following you and following their strategy. The ultimate goal is to choose a portfolio that grows in value over time. That’s obvious, you might say.
But, and this is certainly what makes Iconomi so interesting, you can also be the one who creates the strategy to follow.
In fact, that’s how you can also make money with the platform.
How can you make money with the platform?
Well, every time someone follows your strategy, you will get back a part of the fees, quite simply.
Basically, as the diagram shows, if you invite someone who will follow your strategies, then you will earn 80% of their fee. If the person you choose follows another strategy, you will earn 50% of the fee. That’s not bad at all.
So let’s take a look at Iconomi’s fees now.
What are the fees of the platform?
Ah, of course, this is a crucial question no matter what platform you want to invest on, I would like to say.
Actually, there are 3 types of fees on the platforms:
- Investment/withdrawal fees: There are 0% fees to buy/invest in a cryptocurrency alone. But, there are still spreads. For example, the BTC/EUR pair has a 0.75% spread. Spreads can vary depending on market fluctuations. Each time, the platform gives you an overview of the fees. To invest in crypto-strategies, there are no fees. Only, there is a fee of 0.5 to 2% of withdrawal. If it’s a 0.50% fee, then it’s not a fee that’s paid out. They are only intended to recover the management costs of the platform. Above 0.50%, the fee is passed on to the managers.
- Monitoring/management fees (from 0 to 10% depending on performance). In fact, it is the people who create the strategy who will choose the amount of the annual fees. They can choose to set them from 0 to 10%. In general, from what I have seen on the platform, it is around 1 or 2%. The management fee is annual, but it’s charged on a daily basis so it’s done in very small proportions. For example, if a strategic crypto decided to put a fee at 3%. The fee will be calculated like this: 3%/365 = fee per day or 0.00821% per day). The reason it’s charged per day is also to allow you to switch from one strategy to another, in case you want to change. It is more practical, you will agree.
- Performance fees: Here again, it is the people who create the strategies who will choose the amount of the performance fees. So, if the strategies are not good, the fees are divided between the crypto-strategists and the investors. The crypto-strategists decide on the performance fee. This can be up to 30% and they will also determine the period to collect the fees. It can be weekly, monthly or quarterly. Again, don’t worry, it usually ranges from 0 to 3%.
And, how does the performance fee actually work?
- Fees are only collected if you make a profit from your initial investment.
- The best performing managers earn more, of course.
- Investors do not pay a performance fee if there is no profit made.
Want a concrete example? Here is the example taken from the site to make it easier for everyone to understand.
Let’s say Peter is an investor and decides to follow a strategy.
He invests 1000 euros to start. The manager chooses a 20% fee that is collected every week.
The find the first week (we stay on an investment at 1000 euros net):
The portfolio takes 15%.
Now, Peter’s investment is worth 1150 euros.
He will therefore pay 30 euros of performance fees (20% of the 150 euros of profit) and will therefore recover a total of 1120 euros net. He will have made a profit of 120 euros this week.
He continues his investment and at the end of week 2 (now, we follow the calculations with the 112O euros):
The portfolio loses 20%.
Now, the investment of stone represents 890.60 euro.
He has not made a profit, so he does not pay any fees.
The end of week 3 (we start again on the 890.60 euros):
The portfolio recovers 10%.
Now his investment is worth 980.56 euro.
Even if he made a profit this week, he won’t pay any fees thanks to the “high-water mark” system. Basically, he will only pay a fee if the portfolio exceeds 1150 euros – as was the case in the first week.
The end of the week Week 4 (So we stay on the 980.56 euro portfolio):
The market takes 25%.
Now Peter finds himself with a portfolio worth 1230.20 euro and this has reached his biggest profit so far.
He will therefore pay only 10.64-euro performance fee (20% of the 80.20 euro profit: 1230.20 euro of week 4 minus the high-water mark of 1150 euro of week 1. So he will not pay 20% of the 240.64 euro profit earned in week 4).
Now he has 1210.56 euros on his wallet. He has therefore earned 210 euros net in one month.
Note: For easier understanding, the calculation below is simplified.
- These are fees that are subsequently paid back to the crypto-strategists and to the platform itself. If you have brought in followers of your strategies, you will therefore get a commission on these fees, which are paid on the 10th of each month.
- Registration fees,
- Withdrawal fees.
Here is what you need to know about fees. I invite you to read the very detailed information on the platform for even more details. You can’t say that they are not transparent. Everything is very well explained.
The difference between public and private crypto strategy?
In fact, if you have decided to create your own strategy, you should know that it will not be visible to all users of the platform.
At the beginning, it will be in private mode and only the people you invite will be able to invest in your index.
There are certain criteria to follow to be able to put your strategy in public mode.
Basically, you need people to follow you and invest. Also, you will need to have a skype call with one of the employees, etc.
This is also to tell you how seriously they take this, not just anyone can create their strategy and publish it.
Conclusion: Iconomi, an excellent platform for investing?
We don’t see many platforms like this. Personally, I really liked the concept and the way it was implemented. Moreover, giving everyone the possibility to be both investor and manager is really a godsend.
I knew an application more or less equivalent (Ember Fund) which is pretty good and quite equivalent to Iconomi.
Iconomi is still very interesting and can bring us a lot of profits, if we choose the right index.
The platform is incredibly easy to use, so anyone from beginners to blockchain experts can invest and manage assets this way.
However, one of the comments from other online users is that the entire ICONOMI platform is a closed source with no reasonable explanation on their site.
We just saw the platform add the ability to deposit and withdraw in euros, which is huge, and we expect them to add support for US dollars soon. We also expect them to gain the ability to accept U.S. investors, but that will depend heavily on how the regulatory push goes.
A word of caution though. The code for Iconomy is not open source. Some skeptics then, don’t like the centralized nature of the site.
What do you think? Have you tested it? Do you want to make your own strategies?