ICONOMI: Invest in high-yield indices from €10!

I am happy to present the platform to you Iconomi because it is a site that offers something different in the world of cryptocurrency. This is clearly for me, the best discovery I have made in several years. Yes, yes, I am very serious and by reading the rest, you will understand why, I am sure.

Of all the platforms currently existing, it is clearly the one that offers the best performing assets on which to invest. Likewise, 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 goals.

Of course, the higher the profits can be, the higher the risk, naturally.

Although it focuses on finances as many crypto projects do, the Iconomi project is quite unique.

Presentation of the Iconomi website

In fact, to quickly summarize, Iconomi allows users to invest in high-profit indices. Likewise, it allows everyone to create their own crypto indices, a network of digital assets.

Perhaps even more importantly: users can then invest in these digital asset networks and follow the experts' investment strategies.

The very good news for retail investors is that Iconomi has not placed any restrictions on who can invest in their DAA products. Basically, anyone can invest in Iconomi and even, it is one of the few sites that accepts so many users from all over the world.

The Iconomi team made the decision to keep access to their funds open because they believe 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 really, really rich investors.

You will tell me, this is the prerogative of the new DeFi companies… Opening financial instruments to as many people as possible. Facilitate access to the most diverse financial tools and assets...Yes, that's how we are revisiting the finance sector..

Anyway, let's stop the chatter and now move on to explaining this platform:

Who is the team behind Iconomi?

ICONOMI is a Slovenia-based fintech, which is a crypto 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 make it easier to create and manage crypto indices. In fact, it is really the equivalent of an investment fund dedicated this time to cryptocurrencies.

Additionally, the goal is to achieve mass adoption. Therefore, everyone can invest in different funds, according to their own choices.

Basically, when you invest with Iconomi, you invest in an index fund which brings together several cryptos according to the same theme for example.

This is not about simply investing in one or the other of the cryptocurrencies 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 Digital Asset Networks?

The funds on ICONOMI are based on digital asset networks (DAA), which include various combinations of digital assets. Basically, these are investment strategies in portfolios that combine several types of assets. We 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 (DAAs 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 be either diversified to maximize value stability or fine-tuned to aggressively pursue maximum gains,” making the platform a very attractive possibility for those considering investing.

How does it actually work? Iconomi?

ICONOMI has built a platform for DAA managers and investors to connect and work together on digital assets.

So, on the platform, you can be an investor at the same time, that is to say, a person who will follow portfolios.

And, we can also be a manager who will create portfolios in which people can also invest.

It’s a really very simple platform and very intuitive 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 investment. Investors can search through the different DAAs offered and invest their digital assets in the ones they find most promising.

If a DAA fund manager has a good performance on the platform, it boosts 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 purchase various 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.

This is also why it makes it a very interesting and sought-after platform among crypto holders.

What are the advantages of ICONOMI for its investments?

ICONOMI promises ultimate security to its users because they understand that digital assets require additional layers of security rather than just one. Most digital assets that pass through the platform will be permanently stored in multi-signature protected cold wallets, giving its users peace of mind in protecting their digital assets.

According to them, the main reasons why you should use ICONOMI for digital asset investing are:

• 1/ Reduce the risk of depreciation: lhe new economy is evolving at lightning speed, so the value of digital assets can fluctuate quickly. Making a DAA of multiple digital assets can reduce the risk of depreciation.
• 2/Maintain an optimal composition of digital assets: easy range adjustments enable constant response to markets for optimal growth.
• 3/ Attract affiliates and split the profits: invite others to support your DAA assets and share in the profits.

Essentially, Iconomi works a bit like a mutual fund company that works with stocks, keep that in mind.

The only difference here is that financial assets are primarily crypto assets.

What you can do on the platform is: invest in strategies or create your own strategy.

These DAAs can be bought and sold easily, without lock-ins or waiting periods for withdrawals. Again, this is a great advantage of using Iconomi.

How to invest in Iconomi?

Investing with Iconomi is particularly easy. The steps are very simple to follow, as you will see.

1/ You must first create an account on the Iconomi website.

Once done, you will need to follow the KYC protocol. As you know, you will need to send your screenshot of your passport. We will not ask you for any other residence papers. That at least makes registration a lot easier.

2/ Choose a method (buy cryptos or follow a strategy)         

Yes, now you have to choose whether you want to buy cryptocurrencies directly in the classic way. Or, you can choose and that's the point of this platform you will tell me, to explore the different strategies.

For example, you can actually choose to follow a strategy posed by someone 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 graph linked to it. To be sure that I am investing in an index that will pay me back, I click on the most promising one in my opinion.

In my case, I therefore opt for “Defi Core”.

Basically, it is an index that brings together cryptos linked to projects in the deFI (decentralized finance).

Also as you see, we have all the important details on this index.

In fact, we can even know what this index is made of.

Then, of course, do not hesitate 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 rather interesting which makes 60% per year. Not bad, isn't it?

So, well, I want to invest and go further.

So what I do is I click on "follow strategies".

Naturally, this is where I have to make a bitcoin or Ethereum deposit.

You can make a first deposit in Bitcoin, Ethereum, Euro, Tether or even USDC and just recently support for deposits and withdrawals in Euros was added.

Please note: Likewise, to deposit in Bitcoin, Ethereum or even Tether the maximum is 15,000 euros and the minimum is $10.

Please note that if you want to deposit in euros, the minimum is 50,000 euros. This is 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:

Smart contracts powered by Ethereum 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, in terms of security, this remains an excellent site.

The initial DAAs were created by cryptocurrency investment leaders such as Columbus Capital Ltd. and Solidum Capital, but have since expanded to now include 29 different DAAs to choose from.

Each also charges its own management fees, generally ranging from 1% to 6%. Some of the DAAs have even been tokenized and can be withdrawn to ERC-20 compatible wallets themselves. I explain the platform fees below, in the dedicated chapter. 

Each index has its own particularity, you must carefully 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 4 cryptocurrencies according to the percentage below.

As you can see, I am shown directly how much this set would have gained or lost during the previous month.

It is, I find, an excellent tool to encourage people to only create winning or plausible strategies.

So, when we apply it, here is what it gives:

There, you can see with these 4 other cryptocurrencies, how much my wallet would have taken. we hit 35%, I can’t tell you how huge that is!

So, if you want to follow or create your own strategies, it's up to you to concentrate and learn about 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 already created portfolios.

Most of the time, we will see experienced investors follow and follow their strategy. The ultimate goal is to choose a portfolio that increases in value over time. It's obvious, you'll tell me.

But, and this is certainly what also makes Iconomi interesting, is that we can also be the one who creates the strategy to follow.

In fact, this is how you can also make money with the platform.

How?

Well, every time someone follows your strategy, you're going to recoup some of the costs, period.

Basically, as the diagram indicates, if you invite someone who will follow your strategies, then you will earn 80% of their fees. If the person you choose follows another strategy, you will earn 50% of the fees. Which is not that bad.

So let's see, now, the Iconomi costs.

What are the platform fees?

Ah, of course, this is a crucial question regardless of the platform where you want to invest, I want to say.

In fact, there are 3 types of fees on the platform:

• Investment/withdrawal fees : There are 0% fees to buy/invest in a single cryptocurrency. But there are still spreads. For example, the BTC/EUR pair has a 0.75% spread. Spreads may vary depending on market fluctuations. Each time, the platform gives you an overview of the costs. To invest in crypto strategies, there are no fees. Only, there is a withdrawal fee of 0.5 to 2%. If it's a 0,50% fee, then it's not a fee being paid back. They are only intended to cover the management costs of the platform. Above 0,50%, fees are shared between 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 therefore choose to set them from 0 to 10%. In general, from what I've seen on the platform, it's around 1 or 2%. The management fees are annual, but are charged daily so that it is done in very small proportions. For example, if a strategic crypto decided to set fees at 3%. The fees will be calculated like this : 3%/365 = fees per day or 0.00821% per day). If it is taken per day, it is also to allow you to switch from one strategy to another, in case you want to change. It's more practical, you will agree.

• Performance fees : Here again, it is the people who create the strategies who will choose the amount of performance fees. So, if the strategies are not good, the fees are divided between the crypto-strategists and the investors. Crypto strategists decide on performance fees. This can go up to 30% and they will also determine the period to collect these fees. This can be weekly, monthly or quarterly. No worries, again, in general, it varies between 0 and 3%.

And, how do performance fees actually work?

– Fees are collected only if you make a profit from your initial investment.
– Managers who perform better earn more, of course.
– Investors do not pay performance fees if there are no profits made.

Want a concrete example? Here is the example taken from the site to make it simpler and understandable for everyone.

Let's say that Pierre is an investor and who decides to follow a strategy.

He invested 1000 euros to start. The manager chooses a 20% fee which is collected weekly.

The end of the first week (we remain on an investment of 1000 euros net):
The portfolio takes 15%. 
Now, Pierre's investment is worth 1150 euros.
He will therefore pay 30 euros in performance fees (20% of the 150 euros in profit). So, he will therefore recover a total of 1120 euros net. He will have made a profit of 12 euros this week.

Then he continues its investment and at the end of the week  2 (now, we follow the calculations with the 112O euros):
The portfolio loses 20%.
Now the stone investment represents 890.60 euro.
He didn't make a profit, so he doesn't pay fees.

The end of the week 3 (we start with 890.60 euros):
The portfolio takes back 10%.
Now his investment is worth 980.56 euros.
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 fees if the portfolio exceeds 1150 euros – as was the case during the first week.

The end of the week Week 4 (We therefore remain on the portfolio of 980.56 euros):
The market takes 25%.
Now, Pierre finds himself with a portfolio worth 1230.20 euros and this has reached his biggest profit so far.
He will therefore only pay 10.64 euros in performance fees (20% of the 80.20 euros profit: 1230.20 euros in week 4 minus the “high-water mark” value of 1150 euros in week 1. Basically, he will not pay therefore not pay 20% of the 240.64 euros profit earned in week 4).

Now he has on his wallet 1210.56 euros. He therefore earned 210 euros net in one month.

Footnotes: For easier understanding, the calculation below is simplified.

• These are fees that are subsequently paid to the crypto-strategists and the platform itself. If you have brought in followers of your strategies, you will therefore recover a commission on its fees, which are paid on the 10th of each month.
• Registration fees,
• Fees for withdrawing winnings.

So that’s what you need to know about fees. For even more details, I invite you to read the very detailed information available on the platform. We cannot say that they are not transparent. Everything is very well explained there.

The difference between public and private crypto strategy?

In fact, if you have decided to create your own strategy, be aware that it is not going to 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 move your strategy into public mode.

Basically, you already need people to follow you and invest. Likewise, you will need to schedule a Skype call with one of the employees, etc.

It's also to tell you how seriously they take it, it's not just anyone who can create their strategy and publish it.

Each

Conclusion: Iconomi, an excellent platform for investing?

It must be said that we don’t see many platforms like this. Personally, I really appreciated the concept on the one hand and the way it was implemented. In addition, giving everyone the opportunity to be both an investor and a manager is truly a godsend.

I knew of a more or less equivalent application ( Ember Fund) which is pretty good and quite equivalent to Iconomi. Likewise, there is a version on DeFi, decentralized therefore: PieDAO.

Iconomi nevertheless remains very interesting in every way 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 users online is that the entire ICONOMI platform is closed source and without a 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 the US dollar soon. We also hope that they will gain the ability to accept US investors, but this will depend heavily on how regulatory pressures play out.

A word of warning though. The code for Iconomy is not open source. Some skeptics then do not like the centralization aspect of the site.

And you what do you think? Have you tested it? Do you want to create your own strategies?

Note: I decided to create an article dedicated to Iconomi to share the strategies of Zonebitcoin readers. Stay tuned for more or contact me if you have a serious strategy to present to readers.