What is STF and should you consider investing?
The Smart Token Fund or STF was created by WazirX as an alternative to mutual funds. The main difference is that you invest in cryptocurrencies. This is designed for early investors who don’t know much about the industry. Since its launch 2 years ago, the landscape of cryptocurrencies has changed dramatically, and so has STF.
What is STF?
WazirX, India’s largest cryptocurrency exchange, was established STF(Smart Token Fund) Allow investors to provide funds to traders with experience in the crypto field and profit from their skills. This is done by purchasing smart tokens created by experienced managers who will control the investor’s portfolio.
Smart tokens allow your portfolio to occupy a place in the large portfolio of avid traders in exchange for cryptocurrency. Although WazirX Allow investors To buy and hold multiple smart tokens at once, the transaction volume limit of smart tokens is at least 5 USDT(Tether), up to 100,000 USDT.
If the cryptocurrencies that make up the STF perform well, then smart tokens that can be sold with the help of sell orders also perform well. At the time of sale, the currency that constitutes the smart token will go directly to your WazirX wallet.However, the platform Restricted sell order Only do it once a day. One possible reason for doing this might be to stop people”“Pumping and dumping” plan“It has become very rampant these days.
Investors get expenditure Only when STF generates profits, it will be liquidated and provided to you, only keeping your original investment.
More information about STF traders!
STF traders must accept strict KYC regulations in order to manage investor portfolios. However, WazirX chose not to publicly disclose any information about these traders, which really makes it very challenging to choose the right traders for you. The only data you can get is their brief history of investments and their strategies.
In addition to this, you can also monitor the performance of its tokens and how long has passed since its creation. It is also important to note that the initial price of smart tokens is set by the STF manager, which will not affect the performance of the fund in any form or form.
In addition to not allowing traders to use investor accounts for deposits, withdrawals and P2P buy/sell orders, the platform also separates the funds of traders and investors to avoid confusion.
In addition, traders can purchase their own STF and join the WRX mining and referral commission program.
WazirX is committed to appropriately compensating traders and correctly charging investors. Although the project has not yet been fully developed, it is being refined to make it more transparent.
Are current market trends in favor of STF?
Currently, WazirX lists more than 15 STFs and intends to continue to add more as people continue to find ideal traders with ideal portfolios.
XOOM is one of the oldest STFs on the WazirX market and has a very simple profit-making strategy. The manager has also been engaged in trading for about 4 years, which has increased his expertise. This also highlights the fact that the platform is looking for people with appropriate skills and experience to display, rather than more descriptive personal information.
It is also very coincidental that almost all of the trader’s investment portfolio is in WRX (WazirX’s native token) and is the most valuable STF on the platform. Like most cryptocurrency derivatives, STF also suffers from frequent fluctuations. This does not really make them an inevitable safer alternative to direct investment in cryptocurrencies.Another important thing to note is the use of Tether (USDT), which has recently become quite controversialThe reason for this is because of past accusations of abuse of it by those in power. Tether is also a stable currency, which makes it even more important for financial institutions.
However, it does trade at such a high price, which makes it more attractive to investors who want to take big risks and get big returns. Don’t forget that as an investor, you play a very small role. All in all, this concept is very suitable for Indians seeking help in the newly accepted encryption industry.
DWAYNE D’CUNHA, intermediate writer.
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