Updated on August 7, 2024
How Novelist invests in crypto for you
At Novelist, our team of experts invests in crypto on your behalf for the long term. But how do we invest? And why do we make certain choices? In this mini-series, we explain how our strategy is structured, how we select coins, how we allocate weight to different assets, and how we manage risk.
Watch the five short videos below to discover how we invest in crypto for the long term.
Step 1: Investing in network effects
When you invest in crypto, you’re investing in networks: the more users, the higher the value. At Novelist, our investment strategy is based on this principle. Curious about our approach?
Network effects.
Step 2: Defining our investment universe
At Novelist, we apply strict selection criteria before including any coin in our investment universe. Want to know how this process works?
Investment universe.
Step 3: Our criteria for selecting coins
To determine which coins to include in our strategies, we focus on adoption. We gather data from the blockchain and analyze transaction volume, active users, and revenue. Curious about how this process works?
Coin criteria.
Step 4: How we determine coin weighting
At Novelist, we use two key factors to determine the weighting of each strategy: market value and conviction. If a coin has a higher market value and our investment team has strong confidence in it, it will have a larger position in the portfolio. Check out the full explanation here.
Coin weighting.
Step 5: Risk management
Not all assets we manage are immediately invested. Sometimes, we maintain a strategic cash position. We also actively adjust the distribution between our strategies based on market conditions. Want to know how that works?
Risk management.
Ready to start investing smartly?
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