Project rundown interview with Quantia Capital – ALTCOIN MAGAZINE
While some blockchain enthusiasts believe in technology and that it can play a leading role in improving all industries, others see it as an opportunity to make money through the influx of digital currencies.
More risky traders and speculators use every opportunity to trade crypto active assets, skillfully using their volatility and at the same time complaining about the lack of liquidity. For these reasons, trading in the cryptocurrency space is reduced to small trading operations, which was supported by the introduction of restrictions on the amount of withdrawal on most exchanges. As a result, the growth of arbitrage trade began, which brings a lot of profit to many traders.
Quantia Capital is a cryptocurrency hedge fund and digital-asset-management company trading an arbitrage strategy across the most-liquid crypto exchanges in the world. We have been talking with the team.
Hey guys! Thanks for reaching out. Let’s just dive in and talk about your company. First, tell us about your experience and journey working on cryptocurrencies and what do you offer for whom?
Hi guys, thank you! Our first contact with Bitcoin was in early 2013 when we were managing portfolios for local clients in a context of economic instability in Argentina.
At that moment, there were some restrictions that didn’t allow people to freely exchange currency or wire money abroad so bitcoin became quite popular.
As a consequence, we had lots of friends and acquaintances that had purchased bitcoin and were holding it in wallets or exchanges without generating any interest.
Given the volatility of the market and the number of different exchanges that traded bitcoin, we started to notice some significant arbitrage opportunities, so in 2015, we founded Quantia Capital and started trading an arbitrage strategy, that allowed our clients to earn interest with a free-market-risk strategy.
Do you trade manually? What is your investment strategy?
Although our approach is algorithmic, we always double-check manually what is going on when our algorithm detects an arbitrage opportunity. As we don’t do high-frequency trading, we can take some seconds to manually verify that all the inputs and outputs are correct and that there is no web service or API going crazy and taking random decisions with our capital.
How are you different from others? What are the company’s core values? Why?
When we started there were not many companies/funds out there doing this, but now there are many more. We offer a conservative approach, without excessive leverage and trading across the most-liquid and reputable crypto exchanges in the world.
We rather work with a few trusted companies, than engage with every single new exchange out there with no reputation.
Moreover, we want our clients to feel comfortable and free with their capital, so there is no entry fee, exit fee or management fee, and no lockup period. Clients can redeem their capital and interest without any penalty.
Tell us more about Quantia’s algorithm. What kind of ROI should one expect when investing in your hedge fund?
Returns are variable and depend on market conditions, like volatility, but if we consider data from the last 2 years the average monthly return is 1.66%. Which is around 20% a year.
What about the fees?
As I mentioned previously, we don’t have any entry fee, exit fee or management fee. We charge a success fee that goes from 20% to 30% depending on the account size.
What are the minimum investment and what maximum?
Our minimum ticket size is 50,000 USDT or equivalent in BTC.
Clients can have bitcoin-denominated accounts or usdt-denominated accounts, in which they can get the returns from the arbitrage strategy without having exposure to the market.
What is your current AUM (Assets under management)?
We are currently managing over 4000 btc from around 480 active clients in the fund.
What about the security of funds? What security measures do you take?
Security is our main priority, so we have many layers that protect our client’s funds from being hacked or stolen.
The funds are distributed evenly across the exchanges we work with, this is required as we need to have available balance to trade if there is an opportunity.
All the corporate accounts are protected with strong passwords and two-factor authentication.
Also, we have set up a whitelist of IP addresses allowed to log in to the accounts, and if a change is made, withdrawals are suspended for a couple of days.
Same thing with withdrawals: we have a whitelist of addresses allowed to process withdrawals, and it cannot be changed without suspending them for some time.
As regards internal risk, no employee has access to any account or wallet. And for extra security, we use multisig wallets that require multiple signatures to finally move funds outside of the company.
How often do you monitor/review your portfolio?
On the last labor day of the month, we assign the results of the ongoing month, and every 3 months, we settle the accounts and charge the success fee.
We don’t do it weekly as trades may sometimes take longer to converge.
Guys, thank you for your time. We covered all the important things. Tell us where our readers can find you if they have further questions?
Thanks a lot for the questions. They can check our site: www.quantiacapital.com or email us at contact@quantiacapital.com
Published at Mon, 14 Oct 2019 11:59:59 +0000
{flickr|100|campaign}
