The risks to consider when participating in Bitcoin profit funds
Although the profit figure of 8.9% in the first quarter of Sygnum sounds very attractive, you need to be alert to the nature of the game. This fund operates based on the strategy of arbitrage between exchanges. That's how it is, this model is only effective when the market has a sufficiently large price discrepancy. Once the market becomes too saturated or the trading algorithms of other funds also jump in, the profit margin will be significantly narrowed. 10% per year is not a guaranteed figure forever. #anhbacong
Additionally, using Bitcoin as collateral to borrow money (Lombard loans) is a double-edged sword. In a volatile market like Crypto, if the price of BTC drops significantly, you may face the risk of liquidation of assets if you do not manage your debt ratio well. Don't forget that you are entrusting your assets to a third party for management. Even if it is a Swiss bank, systemic risks and legal issues in different jurisdictions are always present. Consider carefully whether you want to hold the keys to your wallet or trade safety for a moderate profit. $BTC
