How These Pioneers Prove Women Belong in Crypto

Long gone are the days where women play a back-seat role in the workplace, on Wall-Street, or in investments as a whole. Since the birth of Bitcoin in 2009, there has been a strong incentive to change the name of the game. A newfound solution to making finance universally more accessible, not just for the few, but for all. In 2021, we still have a way to go before the crypto-space is considered to have a gender-equal ratio. However, we can at least note that decentralized finance allows for the potential of this growth in significantly better ways than the traditional finance system. Women seek to understand crypto, they’re curious and they’re ready to invest. Read along to discover why more women are turning towards digital assets and how they are carving their paths in this industry.

Traditional Finance

There are countless challenges alongside leveling the investment playing field and achieving financial freedom in our traditional system. In 2020, the national pay gap in the United States is still roughly 18%, with not a single US state paying females higher than males (on average). Therefore, resulting in increased difficulties for women attempting to build their 401k’s and plan for retirement in a way as effectively as men can. Due to the large disparities in active income, more and more women are looking for ways to invest in forms of passive income…cue cryptocurrencies. 

How Crypto Supports Females

The main differentiator between digital assets and the traditional banking system stems from the blockchain. Decentralized finance allows for transactions to occur without passing through a third-party intermediary, granting individuals complete control and freedom over their own assets. Not only is this more efficient, but it is also cheaper and provides a sense of security that is often overshadowed when interacting with third-party sources. Gemini conducted a survey that found “Among those planning to invest in crypto, 40% are women.” Additionally, “ 39% of millennial women say that they would be more interested in crypto if they knew it could make finance more accessible.” These numbers thus prove not only the desire but the intense need for women to feel empowered by their financial options and decisions, instead of discouraged like other, often mistreated minorities do in the traditional sector. 

Women in Crypto

Although there is progress to be made, we wanted to highlight some special women who have redefined the cryptocurrency marketplace. First off, we have Elizabeth Stark. This double-ivy league graduate co-founded the company Lightning Labs in 2016. Lightning Labs is a “second layer” protocol that helps make the blockchain run more efficiently. Lightning Labs is just one of her many accolades as she is concurrently a research fellow making decisions informing public policy about crypto. One of Stark’s famous quotes is “Welcome to Bitcoin, you can’t tell people what to do.” Stark is a huge advocate for all things crypto because of the financial freedom crypto empowers, as the removal of intermediaries makes for a more accessible future of finance. 

This article wouldn’t be complete without the mention of Katie Haun, a former partner at Andreessen Horowitz. She was introduced to Bitcoin in the currency’s early days, utilizing blockchain’s capabilities to investigate criminal activity. Flashforward a decade and Haun is now considered “The Face of Credible Crypto” as she serves as an independent director on the board for the now billion-dollar company, Coinbase. When giving advice about crypto to the public she says, “Don’t let yourself think ‘Oh, it’s too complex, I don’t want to go dive deep in it.’ You don’t need to dive deep in it, just go learn something about it that you didn’t know.” Haun encourages all individuals to be patient with the crypto space as it is ever-changing and evolving. 

Another female cryptocurrency advocate and partner at Andreessen Horowitz is Arianna Simpson. Simpson founded the investment fund Autonomous Partners, which specializes in cryptocurrency and digital asset allocations. When it comes to crypto, she wants to remind women “it doesn’t take a P.H.D to understand it,” it just takes a will to learn.

End Remarks 

These women and many more are firing up the female community to feel empowered to redefine wealth and educate themselves towards reaching financial freedom. At Sarson Funds, we believe in transparent and unbiased education for all individuals regardless of gender. To learn more about our investment strategies visit our YouTube Channel, follow us on social media, or visit our website to learn more about our holistic educational approach to crypto and digital asset investing.

By Abigail Almonte

Coinbase: Ways to Invest in Crypto

Cryptocurrency investments have soared over the past decade as accredited investors and institutional adopters have validated the industry, inspiring intense growth. Adding digital assets to an investment portfolio has shown to be a strategic and effective way to gain passive income. While cryptocurrencies are still new to most individuals, you may be wondering how to start investing. You want to invest a portion of your savings into Bitcoin and aren’t sure how to get started, or how to best go about it. That’s where Coinbase comes into the picture. Although there are a variety of different ways one can invest in cryptocurrencies, this article will focus on Coinbase’s capabilities and how the company has evolved over the years to facilitate crypto investing.  

When Coinbase was founded back in 2012, Bitcoin had been around for roughly three years and was the sole cryptocurrency Coinbase offered for trading. In the years since, they have also added Ethereum, Bitcoin Cash, Litecoin, and many other crypto and fiat currencies. Showing tremendous growth in under a decade, operating in over 100 countries, with 43 million users, Coinbase is one of the largest crypto exchanges. Popular amongst beginners as well as crypto veterans, Coinbase is a household name. 

Coinbase Capabilities

Coinbase’s mission is to utilize crypto’s capabilities to make the financial infrastructure exponentially more accessible than traditional finance. While Coinbase is most commonly known for and utilized as a cryptocurrency brokerage, its capabilities don’t stop there. In addition to simplifying the buying, selling, and security implementations of cryptocurrencies, Coinbase additionally offers the capabilities of a wallet, exchange, and other supplemental tools all in one condensed location. Such tools include trading signals, and other data tools that keep investors up to date on what is happening in the market as a whole. Coinbase also offers its native stable coin, USD coin which upholds the same value as the U.S. Dollar.

Why Coinbase 

Coinbase’s interface is very user-friendly. To get started, all you need to do is link your bank account to your Coinbase account and you are free to trade. The platform provides the ability for individuals to purchase coins using debit cards, PayPal accounts, and other methods of payment. Additionally, their user interface is updated regularly and is a trusted platform for many individuals around the world due to their insurance policies and the security of digital assets. This is a reassuring feature as it prevents hackers from easily accessing user information. Coinbase is highly liquid as well, which proves to be beneficial for users as the cryptocurrency market often experiences price volatility.  Coinbase optimizes the management of all users’ assets in one place, and even the ability to schedule buys in a variety of increments.

With access to over 30 different cryptocurrencies, there are a wide variety of crypto assets to choose from, allowing individuals the ability to gain exposure and add a variety of unique digital assets to their portfolios. 

Final Remarks

With exponential need and desire from investors to purchase their own digital wallets, alternatives crypto exchanges include Kraken, Binance, and Gemini. All with similar intentions to evangelize the crypto ecosystem, crypto exchanges are making a decentralized future of finance more attainable.

By Abigail Almonte

Smart Contracts: A Future of Frictionless Commerce

Smart Contracts: The future of financial operations - Sarson Funds Cryptocurrency Financial Advisor

Smart Contracts: The future of financial operations - Sarson Funds Cryptocurrency Financial Advisor

As finance becomes more digitized, it is important to consider the different ways our preexisting financial infrastructure can be more decentralized. One of the major shifts in peer to peer, business to business, and global commerce is the movement toward smart contracts as the mediation between transactions. Smart contracts are an application of blockchain technology that automatically facilitate transactions between two parties, removing the need for banks or middle institutions to be the intermediary in a transaction, and record the history of the transaction on the blockchain. The purpose of this blog is to inform the finance community on one of the most lucrative trends in the crypto industry to help them prepare for the changing landscape of fintech innovation.

Removal Of Counterparty Risk

In the current financial framework, interactions between people and businesses have always required some sort of intermediary to approve and execute a transaction. While the traditional system works, it is inefficient. The costs of involving a third party intermediary to approve a transaction are not only steep but unnecessary. Depending on the distance a transaction must travel, these transactions take several days to fully execute, changing hands multiple times and accruing more and more unnecessary costs. As each transaction passes through different banks, the risk of loss and hack grow higher. Smart contracts simplify transactions by removing unnecessary steps, creating a smoother pathway for transactions to occur, removing counter party risk, cost and time inefficiency for both of the involved parties.

Enabling the Future of Commerce

P2P Use Cases

One of the most prominent use cases for smart contracts in the current financial landscape is between individuals engaging with decentralized exchanges like Aave, Compound, and Uniswap where users can lend and borrow crypto for high yields. In these exchanges, users join lending pools where they can lend and borrow crypto with other users at agreed upon interest rates, agreements that are executed by smart contract deployment on the platform. These smart contracts, which are written code on the blockchain, execute these lending and yield agreements automatically to ensure both parties meet their agreed upon contract terms.

B2B and B2C Use Cases

Another critical use of smart contracts are in supply chains. Supply chains are using smart contracts to confirm and track shipments and deliveries as they take place, creating an instantaneous way of payment, transaction validation, and record keeping throughout the processing and delivery of consumer goods. Smart contracts are making supply chains more efficient by digitizing the payment, validation, and record keeping of the processes that goods go through from production to consumer, creating quicker and more cost efficient ways of running a supply chain.

Use cases for financial institutions

While banks are slow to adopt blockchain, the use cases for the finance community will shape the future of financial operations. Banks like JPMorgan are pioneering the future of smart contract deployment in banking as they recently launched their own blockchain, Liink, and stablecoin, the JPM coin. JPMorgan uses the JPM coin with smart contract mediation to perform risky interbank transfers and international payments instantly and without the need for an intermediary, removing the inefficiencies described above from their affairs. JPMorgan is blueprinting a lucrative landscape for other banks to follow suit with blockchain and smart contract deployment.

At Sarson Funds, we believe the financial community must keep a close eye on the development of smart contract capabilities as these automated systems enable greater, frictionless financial freedom. We believe that as the ecosystem develops, smart contracts will become the future of P2P, B2B, and B2C commerce.

By Liam McDonald

Why Bitcoin? Narratives Driving Past & Present Adoption, Explained.

Looking back on last decade’s best-performing asset.

More than a decade after Bitcoin’s inception, the world’s first cryptocurrency remains poorly understood. No matter your success investing in other asset classes, it can be overwhelming to continually hear news about Bitcoin when conversations between its proponents and skeptics remain veiled in technobabble. Even worse, mainstream coverage gravitates toward sensationalism, rather than allowing proper in-depth analysis of the world’s first cryptocurrency. This article offers an antidote to today’s noisy headlines by instead investigating the fundamental ideas driving Bitcoin’s past and present adoption. Our mission is to bring transparency to crypto education to help you decide for yourself on whether Bitcoin is an opportunity worth pursuing.

First, let’s examine how Bitcoin (BTC) serves as money. 

Simply put, Bitcoin has taken the characteristics of legacy monies and improved upon them: First, it is durable, since each Bitcoin’s record is saved on the blockchain; second, it is mobile, as Bitcoin can be sent anywhere on earth in hours, 24/7; third, it is uniform (no single Bitcoin is more valuable than another); fourth, it is scarce, as there is a hard cap of 21 million Bitcoin that can ever be created; fifth, Bitcoin is divisible up to 8 decimal places, making it scalable; lastly, it is identifiable, as the Bitcoin network automatically verifies each transaction’s legitimacy. While it is clear that each of these properties is essential to Bitcoin’s usefulness as a currency, some may be bigger strengths than others. Accordingly, narratives surrounding Bitcoin’s fit within the global economy have changed over time.

Now, let’s go back to when it all began.

On January 3rd, 2009, Bitcoin’s pseudonymous creator Satoshi Nakamoto mined the “genesis block”, or the first public transaction record on the Bitcoin network blockchain. As Bitcoin’s network rose from the ashes of the 2007-2008 financial crisis, Satoshi etched a timeless commentary in this first block’s code; “The Times 03/Jan/2009 Chancellor on brink of second bailout for banks.” In congruence with today’s zeitgeist for the decentralization of finance, we interpret Satoshi’s message as a rebuke to central bank monetary manipulation, since Bitcoin’s vision for “A Peer-to-Peer Electronic Cash System” could make such actions obsolete over time. As mentioned, however, Bitcoin’s role in the emergent decentralized financial system may not manifest as originally imagined. In 2021, is Bitcoin truly peer-to-peer electronic cash, as asserted in the Bitcoin Whitepaper? If not, then what forces continue to drive Bitcoin’s price upwards, in addition to burgeoning markets for thousands of other cryptocurrencies? 

Think gold, not cash.

From January 2020 to January 2021, the US Federal Reserve increased the dollar’s monetary base from $3.44T to $5.25T (52.5%); in other words, about a third of all circulating US dollars were printed after 2019. In contrast, Bitcoin’s supply increased from 18.19B to 18.61B (2.3%) in the same time frame. By virtue of its supply’s predictable, decentralized, and deflationary production, Bitcoin became a popular safe-haven asset for investors hedging against fiat inflation. Accordingly, Bitcoin outperformed virtually every other asset class in 2020—including the millennia-old incumbent store of value, gold. While it’s true that gold has real-world industrial and cosmetic applications, these account only for a fraction of its market cap. As institutional and retail investors continue to realize Bitcoin’s superior qualities as a store of value, we believe Bitcoin will garner more acceptance as “Gold 2.0.”

But what about peer-to-peer electronic cash?

In 2017, it became clear that Bitcoin’s usefulness as peer-to-peer electronic cash was impractical in its current form. Simply put, Bitcoin was bottle-necked by limitations in its code that capped the network at roughly 7 transactions per second. However, debates about whether to or how to address these concerns were controversial among Bitcoin developers, ultimately leading to the creation of “forks.” These forks, such as Bitcoin Cash (BCH) and Bitcoin Satoshi Vision (BSV) are essentially new blockchains independent from Bitcoin’s original network. However, these projects struggle with concerns about network decentralization and security

While transactability is important for utility as peer-to-peer electronic cash, network security is paramount—without it, Bitcoin would have no underlying value. Is the vision for peer-to-peer electronic cash dead, then? Will Bitcoin always be too slow and expensive to transact for coffee? We think not, long-term. At Sarson Funds, we continue to monitor the market for technologies promising scalability for Bitcoin payments without compromising the security of its core network. With institutional players like Visa, Paypal, and Square stepping into the space, payment solutions seem like only a matter of time. In the meantime, however, Bitcoin investors may have to be content with the world’s first cryptocurrency serving only as the ultimate decentralized digital store of value. That’s a pretty good start if you ask me.

By Nathan Frankovitz

Defi Demystified: The Investor Guide to Decentralized Finance

Investor Guide to DeFi: Sarson Funds Cryptocurrency Financial Advisor

Investor Guide to DeFi: Sarson Funds Cryptocurrency Financial Advisor

Over the past few months, Sarson Funds has focused much of our analyst efforts on exploring the capabilities of decentralized financial protocols, commonly known as DeFi. DeFi has become the hottest trend in crypto over the last year, with new protocols being built every day in an effort to tokenize and decentralize traditional financial services. As of February 23rd, the total value locked in DeFi was $37.5 billion, marking an incredible uptick in investment and innovation since this time last year, when DeFi’s total value locked was under $1 billion.

As the DeFi ecosystem develops, we see it as our fiduciary responsibility to provide our community with the information they need to best understand and harness this emerging frontier of decentralized financial capabilities, so we unveil the highly anticipated Defi Demystified: The Investor Guide to Decentralized Finance.

Crafted by CIO Daniyal Inamullah, CFA and Sr. Blockchain Analyst Jacob Stelter, DeFi Demystified presents an in-depth overview of DeFi, its capabilities, and the future of the ecosystem. Our aim is to provide the financial advising community with a credible source to better understand the power of crypto from both Wall Street and crypto experts.

As news and inquiries about this emerging ecosystem arise, please do not hesitate to reach out to us for the best-in-class DeFi education and investment strategies.

For more on us, please visit www.sarsonfunds.com, or schedule an appointment with one of our teammates, here.

Ethereum: Pioneering the Future of Financial Services

Ethereum: The Future of Financial Services

Ethereum: The Future of Financial Services

Congratulations—you’ve made it down the Bitcoin rabbit hole, and now you’re asking the tougher questions. If Bitcoin is the ultimate digital store of value, then what are all these other cryptocurrencies up to? What is Ethereum, how does it differ from Bitcoin, and why are prominent investors suddenly talking about it? Perhaps you’ve seen Ethereum’s (ETH’s) impressive price appreciation and are curious about future price movement. In this article, we will uncover Ethereum’s present use cases, recent price appreciation, and remaining upside potential.

Native to the Ethereum network, Ether (ETH) is a cryptocurrency like Bitcoin. However, Bitcoin’s value is commonly understood as a function of its adoption as a decentralized and deflationary store of value. In contrast, Ether’s value is derived from user demand for smart contract execution on the Ethereum network. In essence, smart contracts execute decentralized applications (dApps) automatically, creating value in part by eliminating the need for central authority. Because Ethereum’s bandwidth is limited, users pay transaction fees with Ether to incentivize miners (network transaction validators) to process smart contract execution. Since anyone can create a dApp, the Ethereum network has become a vibrant and competitive ecosystem for technological innovation. With promising opportunities to decentralize and automate (read: disrupt) some of the world’s most valuable markets in finance, logistics, real estate, and more, exposure to Ethereum and its dApps may be a critical component to the modern investor’s successful portfolio.

So, what dApps exist today that contribute to Ethereum’s soaring values? Lending protocols such as Aave (AAVE) and Compound (COMP) enable users to earn interest or borrow crypto instantly. Synthetix (SNX) enables users to issue and trade synthetic assets that track the price of external assets, such as US dollars or exchange-traded stocks, making derivatives more accessible and liquid. Decentralized exchange (DEX) protocols like Uniswap (UNI) facilitate automated trading of Ethereum tokens through liquidity pools, allowing users to maintain custody of their assets as opposed to being held by centralized exchanges. Though these are only several examples, these rapidly growing dApps demonstrate real adoption and represent a broader wave of change which echoes Bitcoin’s ethos of decentralization: the decentralization of finance, or “DeFi.” Observing this trend begs the question: How much higher can ETH’s valuation go?

At the time of writing, Ethereum’s market cap is hovering around $200B USD; one year ago, today, that figure was $13B. Still, Ethereum accounts for only a miniscule share of wealth when compared to the stock markets. Globally, stock markets have an estimated value approaching $90T. But the financial markets don’t end there. Low-end estimates of global derivatives markets are $560 trillion. High-end estimates reach as high as $1.2 quadrillion. Considering the recent advent of dApps like Synthetix, it seems that Ethereum may just be getting started tapping into these markets.

When faced with Ethereum’s exploding levels of innovation and adoption, it is easy to get carried away with such numbers. In truth, nobody can precisely predict the extent to which Blockchains such as Ethereum will continue to replace legacy financial systems. Nevertheless, it is crucial to understand the enormity of Ethereum’s upside potential and consider the risk of not being exposed to its growth. At Sarson Funds, we believe the trend of decentralization will continue to manifest itself through Ethereum and other blockchain-based technologies like DeFi. For education and news updates on other emerging cryptocurrency sectors like NFTs, DAOs, stablecoins, internet-of-things, data sovereignty, and more, follow us on Twitter, LinkedIn, and check out our newsroom.

By Nathan Frankovitz

9 Things Financial Advisors Must Know About Crypto

9 Things Financial Advisors Must Know About crypto

9 Things Financial Advisors Must Know About crypto

As digital assets and the crypto ecosystem continue to grow, it is apparent that traditional banking services will be an entity of the past. Peer-to-peer transactions allow for the continual growth towards individual financial freedom and flexible decentralized banking. With the world changing for the better, the cryptocurrency market is here to stay. Financial advisors will need to familiarize themselves with the in’s and out’s of decentralized finance in order to better serve their clients in a timely and efficient manner.

Financial advising is about relationship building. Crypto must be discussed to satisfy fiduciary responsibility.

Communication is at the heart and foundation of every advisor-client relationship. It is critical for clients to know their advisor has their best interests in mind while both parties adapt to the world of crypto. Although digital advances have made strides for financial freedom and accessible banking, problems are still likely to arise. When navigating certain investment concerns, clients look to a face they can trust to discern solutions with. The dependency on their advisors to help consult when these problems arise is equally as important, especially in an emerging digital financial industry. 

Know what to pitch, and what not to pitch (not all cryptocurrencies are created equal).

Not all cryptocurrencies are created equal. Coins such as Bitcoin and Ethereum are less risky than most digital assets on exchanges. For example, Bitcoin’s accessibility is stronger than competing Altcoins due to the greater volume of software, merchants, exchanges and implementations which help support operations. Your clients’ needs will vary, so if an elderly woman is looking to diversify her portfolio, she may want to stick with a safer cryptocurrency such as Bitcoin etc. However, other clients may have more flexibility and different risk tolerances that are important to note and pitch accordingly.

Leverage your fiduciary responsibilities as a means to have a conversation built on trust.

Understanding that not all coins are fit for every investor and articulating the wide variety of risks is essential to building trust.  Communicating that you would never advocate for an asset that was against your clients’ risk preference will help clients feel more comfortable. With accessibility to technology, instant transactions and the luxury of banking from the comfort of one’s home, people often forget the overwhelming importance of a financial plan. Clients will still rely upon advisors to maintain their fiduciary responsibilities at the epicenter of their financial relationship. There are decisions that technology cannot take all the responsibility for, and having an understanding of when or why clients should make a particular decision is crucial. 

Transition the conversation from Short-Term expectations to Long-term investment strategies.

Investing in digital assets can be more similar to venture capital time horizons. There are many opportunities to profit in the short term, but the industry is young, so it is best to approach crypto from a longer-term investment horizon than typical equities entertain. With an ever-changing market, it is important not to be caught in a panic sell or impulse buy, but rather plan for investments that will serve well over time. It is important to see what coins are consistently growing in the market, as these will prove to achieve the most long-term value, as opposed to coins that are hot today and gone tomorrow.

Be prepared to provide regular updates on industry developments, especially regulatory changes.

In order to best serve your clients, you will need to welcome industry advancements with open arms. The introductory days of investment apps, Venmo and online banking at one time seemed foreign, and now they have been universally adopted.  The same progression will likely follow suit for digital currencies and assets. The gradual regulation of cryptocurrencies will make the market more stable and suitable for a variety of client investments. Thus, it is essential to be aware of regulatory decisions as they will directly affect the universal adoption of cryptocurrencies. 

As a result of staying up-to-date on industry trends, be prepared to pitch new types of digital assets and investment opportunities.

Decentralized finance (DeFi) is a great example; there are constant changes that are taking place within the industry. The marketplace for DeFi services will only go up from here, as we have seen the cryptocurrency market-cap already reach a trillion dollars.  Being prepared to educate your clients on new opportunities will increase the likelihood that they invest in these at an earlier stage for the best growth opportunities. As we watch the value of coins such as Bitcoin and Ethereum continually rise, remember they too started at the bottom. Being on the initial cusp of innovative coins and technologies can prove to be a beneficial payout for your customers. You want to be confident in your knowledge so that you can pitch the most lucrative and fruitful investment opportunities.

Digital Assets are not just about financial well-being, they’re about massive changes occurring at the societal level.

You want to be prepared to explain why cryptocurrencies matter to society. While they are great investments, there is risk, and addressing the fundamental value proposition of digital assets will make the conversation easier. It is important for clients to understand that the mainstreaming of digital assets allows for every individual to participate in an economy without barriers imposed by fees, geographical borders, or other boundaries. Being able to explain the large variety of use cases involved, as well as the capabilities of the decentralized structure will help clients see that this conversation is about more than just finance. 

You don’t have to go at it alone, there are plenty of educational resources and asset managers to support you and your clients as you gain exposure to digital assets.

Blockchain technology is only growing as the Crypto industry is here to stay in 2021. Advisors will need to embrace the power and potential of this industry by doing their due diligence and staying informed. Luckily, Wall Street-focused educational and marketing firms like Sarson Funds specialize in educating financial advisors to support their clients in their digital asset discovery with resources ranging from policy overviews, investor guides, investment strategies and more. Additionally, Sarson Funds can actively manage your client accounts based on risk tolerance. 

It’s never too late to get involved with digital assets. 

 Although the industry has experienced unprecedented growth, it has significant room to run. Institutions are investing, corporations are adding it to their balance sheets, and governments are clarifying the regulatory landscape. All of which is to say that this is only the tip of the iceberg. As influencers ranging from Elon Musk and Jeff Bezos to rapper Soulja Boy are showing interest, the conversation is certainly continuous and ever-developing. Regardless of who you are, digital assets are here for you.

By Abigail Almonte

Understanding Decentralized Finance: DeFi 101

Decentralized Finance 101

Decentralized Finance 101

In 2020, the cryptocurrency market cap surpassed $1 Trillion. This year, you owe it to yourself to learn how you can get involved in digital asset investment opportunities.

We get it. We live in a digital age full of constant technological changes – keeping up with these changes can be overwhelming. This is especially true for digital assets like Bitcoin. With access to an abundance of information on the topic, sometimes it can be hard to make sense of new terminology and the cultural memes born from societal change. As this ecosystem surfaces, it can be hard to understand even the most basic terms that industry experts take for granted. 

Despite the seemingly overwhelming nature of the digital asset industry, it really isn’t so complicated once you learn the basics. In our view, once you understand the basics, you’ll see that adding digital assets to your portfolio is one of the most critical investment decisions you’ll ever make. That’s why we left Wall Street – to bridge the gap between crypto and traditional finance. You don’t want to be on the sidelines for this emergent industry. 

Start your cryptocurrency and blockchain education with some basic themes and terminology, here:

Decentralized Finance (DeFi)

Decentralized Finance, also known as “DeFi,” refers to a broader series of financial services that uses blockchain technology to reimagine traditional finance. Using publicly available and verifiable ledger systems, DeFi systems support financial transactions that remove many of the costs of counterparty risk. For example: instead of paying an organization to act as an escrow service, you’d use software known as a smart contract to verify financial transactions. 

One example of how DeFi is changing the world is how money is transferred through it. Global remittances total nearly $700 billion a year. Remittance services typically charge high fees and take time to transfer money from one country to another. With DeFi, those transactions can be done rapidly, for a fraction of the cost, and are done directly from peer to peer, offering a more private and secure transaction. 

According to the OCC, DeFi is on pace to overtake traditional financial services.

Smart Contracts 

But what exactly is a smart contract? And why does it matter whether there are 3rd parties involved in a transaction? Smart Contracts are a new type of software that facilitate a cryptographically secured transaction on a blockchain. Smart Contracts function as rules written in code which dictate the execution of the transaction. 

Decentralized Applications – DApps and DEXs

Decentralized Apps (DApps in the crypto world) are unique applications that use smart contracts for different purposes. Smart Contracts have allowed for the creation of decentralized exchanges (DEXs), which are smart contracts that facilitate peer-to-peer market making using complex smart contracts, rather than relying on 3rd party clearing houses, broker/dealers and bank custodians. These applications run exchanges using a permissionless network (no 3rd parties are involved), therefore making DEXs secure. Popular DEXs include Compound and Uniswap.

You may be wondering, why wouldn’t you just use a centralized exchange like Robinhood or Coinbase? The real value behind decentralized applications like a DEX is that you own and maintain custody of your asset up until the transaction takes place. The application cannot restrict your ability to transact with any asset as what recently occurred with the Robinhood’s restriction of Gamestop stock. 

Becoming your own Bank: Decentralized Lending Platforms 

Lending platforms offer a flexible alternative to traditional banking services. They provide users the ability to borrow and lend cryptocurrencies on a peer-to peer network, insinuating the idea of “being your own bank.” Privacy is heightened as classic bank requirements such as identity and credit scores are not required through the platforms.

Stablecoins 

Most people are familiar with Bitcoin and the cryptocurrency industry because of industry wide price volatility. Stablecoins were created as a way to mitigate volatility risk in the DeFi space. These coins are pegged to the value of traditional fiat currencies. For example, USDC is a stablecoin pegged to the U.S. Dollar.

Decentralized finance is in for a wild ride in 2021. As you follow along, it will be critical to be educated on what powers these technological advances and how they are changing the future of finance.

Final Thoughts

At Sarson Funds, we understand that you’re not going to jump straight into a new investment opportunity without educating yourself first. That’s why our core mission is to thoroughly educate financial advisors on this emergent investment class with Wall Street-grade standards. To learn more about how digital assets can support your investment objectives, stay tuned for more educational materials or reach out to schedule an appointment with one of our experts today.

STANDARD CTA

For more updates on the world of digital assets, follow the journey via our Twitter, LinkedIn and Facebook, or here at: https://www.sarsonfunds.com

By Abigail Almonte

Crypto Likes the Stock: How Blockchain Empowers WallStreetBets to Trade “Stonks” on Their Own Terms

Wall Street Bets Finds Easy Solution to Censorship in Mirror Finance

Wall Street Bets Finds Easy Solution to Censorship in Mirror Finance

The market revolution surrounding WallStreetBets (WSB), Gamestop (GME), and electronic trading platforms Robinhood and TD Ameritrade is inspiring a renowned cry for financial freedom in traditional finance markets. The overarching realization many investors are experiencing is that the United States’ “free market” is not so free after all, as Robinhood and TD Ameritrade took actions to limit trading on GME and AMC to protect Wall Street hedge funds from collapsing. At the cost of small-scale investors, Wall Street’s vulnerabilities are being protected by the platforms originally designed to empower we the people, and we the people are furious. 

Crypto and blockchain-based solutions have quickly surfaced to quench the modern investor’s need for a censor-free, frictionless financial system. Mirror Finance is bridging the gap between Wall Street, everyday investors, and crypto, as this decentralized financial (DeFi) protocol gives barred investors a pathway toward true financial freedom. Mirror Finance is a DeFi protocol on the Terra blockchain that allows the creation, use and trading of synthetic assets known as Mirrored Assets (mAssets). mAssets are designed to mirror the price behavior of real-world assets on a blockchain, giving traders all over the world 24/7 access to financial markets without actually owning or transacting with real assets.

Crypto synthetic assets are blockchain-based financial instruments that combine derivative products like futures, options and swaps to imitate and track the value of any traditional asset, allowing for crypto integration with traditional finance. These crypto synthetics enable users to trade these mirrored-assets at their real-time value 24/7, 365 days a year regardless of stock market hours. Mirror brings the financial freedom that crypto offers to traditional finance, permitting fractional ownership, open access and freedom from censorship for everyday investors.

WallStreetBets investors looking for more exposure to WSB-pumped stocks that were censored by Robinhood and TD Ameritrade can regain their stance with these assets through synthetic replicas on Mirror’s protocol. 

The collusion between Wall Street and electronic trading platforms is awakening our society to the true need for decentralized finance. Inspired? So are we. We hope the capabilities that Mirror brings to the world will empower the finance community to continue bridging the gaps between traditional and decentralized finance to inspire the next frontier of financial services.

By Liam McDonald

Crypto Investing 2021: Financial Advisor Education

Financial Advisor Crypto Education 2021

Financial Advisor Crypto Education 2021

Wall Street is embracing crypto. As the digital asset ecosystem grows past a $1 trillion market capitalization, the crypto ecosystem is garnering more recognition, validation, and investment than ever before. The world is realizing the true value behind digital finance as both an asset class and a means of transaction, and as this revelation occurs, it is imperative for financial advisors to be educated and well-versed about this technology to support their clients’ ever-growing investing needs. 

As this global financial shift develops, financial advisors must prepare to embrace the exponential pace of innovation that the fintech industry is experiencing, especially as blockchain technology and cryptocurrencies are shaping up to be the best solution for the needs of individuals, banks, and institutions in an increasingly digital post-pandemic world. Not only do cryptocurrencies offer a solution for an increasingly digital marketplace, they also enable the world to transact instantly, cutting out the risk of third-party interference and empowering a new age of globalization.

Sarson Funds exists to bridge the gap between traditional finance and crypto. We are a cryptocurrency education and investment firm focused on bringing Wall Street standards for research, risk management and transparency to digital asset investing. Thus, we aim to make the crypto ecosystem more digestible and welcoming to the traditional financial community, from financial advisors to institutional investors. 

To help you and your clients along in your digital asset discovery, we have compiled a series of introductory educational content to provide financial advisors an easier path toward the future of finance. Below, discover the five questions you need to know to best serve the crypto investment needs of your clients, a comprehensive guide on how to buy Bitcoin, and our very own Cryptocurrency 101 guide. With these, we hope to be your trusted source for crypto education and investing needs. For more educational content, please visit sarsonfunds.com and our youtube page, here.

Investing in Crypto: Five Questions to Ask Your Financial Advisor

Crypto Basics: How to Buy Bitcoin

Cryptocurrency 101 Guide

By Liam McDonald