High-Yield Crypto Trading Strategies Now Accessible via Non-Custodial, Decentralized Platforms

A wide range of discretionary long and short trading strategies have primarily been offered on centralized exchanges. However, there have been major issues and scandals associated with larger and more centralized platforms, so traders need to consider whether it’s worth the risk to actively trade on such platforms.

In this update, we shall look into the potential benefits of discretionary long and short strategies, particularly when compared to other methods that are used in the cryptocurrency markets. Then we shall explain how these strategies have primarily been used on centralized exchanges. However, with the increasing number of scams and fraudulent activities carried out via centralized platforms, there is a real risk on top of the typical market risks.

Due to these issues, traders may be forced to look for options that might be less appealing.. Because of problems with centralized exchanges, industry professionals have pointed out that some of these platforms are proactively moving to a decentralized version in order to eliminate or minimize these risks. Kunji is one such project that’s currently the only decentralized platform offering these strategies.

Advanced Crypto Trading via Non-Custodial Web3 Wallets

To get started on Kunji, you may begin by connecting your Web3 wallet, which is a seamless and frictionless process. After your wallet has been configured, clients may select from a range of investment strategies that are tailored to their investment goals and overall risk tolerance.

After choosing the appropriate strategy, clients are able to invest directly via their non-custodial wallets. During this process, a share shall be assigned to the user, and the fund will be allocated for fund managers in order to begin trading. Asset managers are able to make strategic decisions to maximize returns while also minimizing associated risks. This way, the end-users need not be concerned about making professional investment decisions on their own.

It’s worth noting that DeFi projects like Kunji Finance offer real-time updates on clients’ investment portfolio’s performance so users may track their investments’ progress at any given time. In addition to these features, the platforms also offer updated insights regarding strategies’ health via the Sharpe ratio, maximum drawdown, as well as statistical measures such as standard deviation. This approach allows traders to make informed investment-related decisions regarding their portfolios.

Investing in Actively-Managed Strategies with Low Risk

Platforms like Yearn Finance and Kunji Finance aim to streamline the asset management process with an approach that enables clients to invest in actively managed strategies in a non-custodial manner.

While crypto remains a highly volatile asset class, digital asset-focused investments may yield sizable gains if carried out in a well-informed manner. But most traders lack the technical know-how and get overwhelmed or confused due to the complex nature of crypto-assets.  However, when it comes to crypto asset management, there are several viable options. Although hedge funds are actively managed, such funds have significant entry barriers, lack transparency, require an initial investment, as well as no custody of funds.

In contrast to these options, non-custodial solutions such as yield-based protocols are not actively managed and nor do they have automated fund management strategies that offer low yield or do well only during certain market conditions. Moreover, fund management services may be based on discretionary investment theses which support long and short strategies created by fund managers via the platform. This approach should assist fund managers with consistently delivering returns that are similar to hedge funds in any given market scenario.

Notably, any trader or investor with decent crypto-asset management skills may become an asset manager and manage their own strategies. To support these innovative strategies, Kunji Finance has been working with its asset management team, which is focused on the “Alpha Blue Chip Focused Strategy” on the platform. As more fund managers join the platform, several different strategies will be used, offering clients with a range of options to invest.

The client who is interested in becoming an asset manager may complete the relevant requirements and provide the necessary details. The voting mechanism is involved for the applicant to run a strategy on the platform.

Strategic Trading in Bitcoin, Ethereum, Other Digital Assets

There are several strategies used to optimize returns. For instance, the Alpha Blue Chip Focused Strategy seeks maximal capital appreciation and achieves considerable returns on assets for investors by employing professional investment techniques. This is done by strategic trading in Bitcoin and Ethereum along with crypto-assets in the decentralized finance (DeFi) and metaverse sectors.

Democratization of Financial Services by Enabling More Investors to Participate

Before these advanced strategies were used, projects like Kunji initially began as a centralized platform (kunji.io, which still offers services to Indian clients). However, following the setbacks associated with centralized platforms, the teams realized the necessity of establishing an asset management platform that operates in a trustless manner. This platform may enable users to invest in discretionary strategies, which had been limited to HNIs but have now become more accessible in a non-custodial environment.  The team began working on the concept behind Kunji Finance in December of last year and launched the beta platform in August 2023.

The beta version of the platform is currently live and around 500 users out of 25k from their early adopter program have now been whitelisted for the beta phase.

Their protocol provides a solution where the fund managers are able to actively manage client assets without taking custody of the funds. Yield-based protocols usually provide low returns, while long-only rebalancing strategies do well in specific market conditions. To address these issues, Kunji allows discretionary long/ short strategies via the integration of spot and derivatives exchanges. This approach enables fund managers to consistently deliver alpha with improved risk management. In addition to these benefits, clients may withdraw their funds at any given time. They do not store users’ private keys.