The selection process for investing in individual tokens is fraught with uncertainty and suffers from uneven regulation. Selecting winners from losers and trying to time the market has proven incredibly difficult. However, actively-managed portfolios often underperform, not to mention that the fees they charge can significantly impact any investor gains. As a case in point, globally-recognized cryptocurrency hedge fund Pantera Capital’s Digital Asset Fund has underperformed against bitcoin, dropping 26% last May compared with bitcoin’s decline of 15%. Nobel laureate Eugena Fama and Kenneth French carried out a study which found that only 2% of the 3,156 fund managers they examined had statistically significant evidence of success, and concluded that a portfolio of low-cost index funds is likely to perform as well as a portfolio of the top 3% of actively-managed funds and better than the other 97%!
Snowball Selection Process
The Snowball team is consistently observing the cryptocurrency market, looking for new entrants into the index space, then performing the necessary fund evaluation and selection process to bring new portfolios onto our platform. While the effort to evaluate indices is expected to be ongoing, since the methodologies of indices do not change, the effort is singular, allowing significantly more coverage by a smaller team, while providing broad market coverage across the entire spectrum.
Snowball employs a strict selection process to assure that portfolios listed on its platform meet a high standard of quality. We have identified the following critical evaluation criteria as the baseline for our selection process.
The app, who has established major partnerships with Kraken, PrimeTrust (SEC qualified custody ensuring money of investors are stored safely) Plaid and Bittrex boosts one, easy to use place for investors to begin their crypto investing journey. They aim to not only make mass adoption possible but to also make it as seamless and easy for the investor to find success by handling most of the due diligence on the back end of the app. Following in the footsteps of Vanguard’s John Bogle who pioneered traditional index fund investing the Snowball app strictly offers bundled investment options or what they call ”crypto portfolios”, all of which have been hand-selected and heavily vetted by their team of professionals and are set to automatically rebalance to follow the fund’s allocations. Taking out the guesswork and extensive research needed to figure out which tokens to buy and sell
The mobile app was approved earlier this year by the SEC as a Registered Investment Advisor, becoming one of the first platforms of it’s kind to be registered with the SEC and allowing them to make investment recommendations through their mobile application. Snowball is now available for download on Apple App Store for people based in the US.
“I’m excited to see the launch of Snowball’s new smart crypto investment automation platform because it will finally provide Main Street investors with access to sophisticated investment and trading strategies for crypto assets.” Brian Kerr, CEO of Kava.io and Investor in Snowball
SCIA empowers everyone to invest intelligently and efficiently in cryptocurrency. We have ‘smart technology, now it’s time to implement ‘smart investment.’
So, what is ‘smart investment’?
“It’s about finding someone whose livelihood is trading in cryptocurrencies; someone who has access to information; someone who has that ivy league degree; who has an evolving investment thesis and is doing diligence on every single token, reading all the whitepapers and shaking the hands of those CEO’s and teams. You need to consistently track their progress and create your own research and thesis-based off that information; subscribe to that.” –Parul Gujral
So, with Snowball, it’s as simple as downloading the app, connecting your bank account that you use every day, choosing the portfolio you want to invest in, and then sitting back to watch your portfolio snowball and grow.
Users of Snowball can also look forward to features like tax optimization, tax-loss harvesting, staking and their investments paying them interest which are set to be released on their platform in the coming months.