crypto hamster
the algorithmic volatility trading advantage
about US
“The only constant in life is change” -Heraclitus
Enter the Hamster...
Crypto Hamster was born out of a passion for Crypto trading. After countless courses, strategies and attempts at timing the market, an approach that favoured slow and steady rather than quick and broke was ultimately adopted...
Crypto Hamster is a cryptocurrency algorithmic
volatility trading program or ‘bot’ (that we call ‘the Hamster’) that operates
a simple yet effective automated volatility trading strategy which has yielded
consistent returns for its investors through the ups and down of the crypto
markets.
The name Crypto Hamster pays homage to Mr Goxx, the cryptocurrency-trading hamster (yes, a real hamster!) whose illustrious career resulted in Goxx Capital outperforming not only major stock indices (Nasdaq 100, S&P 500) but also investing supremo Warren Buffet’s company, Berkshire Hathaway.
Mr Goxx's trading office
THE WORLD OF CRYPTOCURRENCIES
Cryptocurrencies represent more than just a new asset class, the underlying blockchain technology on which cryptocurrencies are built represents an entirely new ecosystem, bringing with it the good, the bad and the ugly to anyone who might venture into this new world.
THE GOOD
The application of blockchain technology is continuously being expanded and adopted in the real world, from redefining the internet (decentralised internet) to being used by traditional banks in the safeguarding of records and more recently, replacing traditional backend banking transaction processes. There are also currently pilot projects underway that will see blockchain technology becoming the protocol for entire financial markets. More specifically, when it comes to cryptocurrency, Bitcoin (BTC) has also become an acceptable legal tenor in several countries around the world with BTC ATMs across Europe a common occurrence, further blurring the line between traditional fiat and cryptocurrencies. Several BTC bonds, cryptocurrency indexes as well as cryptocurrency funds have also been launched on various exchanges around the world, signalling yet another adoption of this new asset class. In relation to trading, the good represents an asset class that is not prone to big bank manipulation in contrast to forex trading which has seen every major bank fined millions multiple times for exchange rate manipulation. Another huge advantage resulting from the volatility of cryptocurrencies is that it negates the need for a broker as there is sufficient movement to make spot trading viable on various exchanges. With no brokers required, transaction costs are significantly less (0.1%) compared to most asset classes whilst transactions are executed on exchanges that have no vested interest in the assets being traded resulting in a truly ‘free market’ exchange that is highly sufficient.
THE BAD
Unfortunately, as with everything in life, volatility also brings with it negative attributes that are not conducive to investor sentiment or returns. As there are no discernible underlying assets or cash flows linked to most cryptocurrencies as well as no consensus with regard to an acceptable valuation methodology, predictability becomes extremely difficult. Fortunes are made and lost in a single day with wild price swings of more than 20% in a single day being a common occurrence.
THE UGLY
There is no shortage of nefarious activities that have become synonymous with cryptocurrencies. From terrorist financing to the flouting of international exchange controls, cryptocurrencies have created a Gangster’s Paradise for those who choose to embrace “the dark side of the Force…” Cryptocurrencies were also hailed initially as “digital gold”, a haven for investors in times of crisis. Unfortunately, history has recorded at best a very high correlation with equity markets in times of crisis whilst at worse, regular “black swan” events indigenous to cryptocurrencies.
investment approaches
Investment approaches to cryptocurrencies have ranged from the traditional to the outright bizarre, all with varying degrees of success.
The most seasoned investors such as Warren Buffet have repeatedly stated that timing the market is a futile exercise, whilst the traditional buy and hold strategy has also had very mixed results from very good (1 000% return) to very bad (holdings losing -99% Luna). The most bizarre strategy was that of Mr Goxx, a pet hamster that had beaten most indexes as well as seasoned professional investors during his short but illustrious trading career!!
As this asset class does not conform to the traditional rules, it stands to reason that the investment approach followed when investing in these assets would also require a non-traditional approach. As the only constant in the cryptocurrency world is change, building a trading strategy based on volatility rather than market direction has proven to be the prudent choice. The most notable strategies that have yielded consistent returns have been arbitrage and algorithmic volatility trading of which Crypto Hamster falls into the latter.
OUR PROCESS
At present, we offer South African investors the opportunity to utilise our service through Valr, the largest Crypto exchange in South Africa by volume.
All funds are held in the investor's name whilst the Hamster is connected to the account via an API.
Investors can monitor their accounts in real-time either via the Valr website or mobile phone application.
contact us
NEELS ENGELBRECHT
Director