How to buy earplugs? Why You Shouldn’t Look for a Needle in the Giant Cryptocurrency Market and other highlights of the week

There is a maxim in the market: the higher the risk, the greater the potential for the return of a project. And, of course, in the cryptocurrency universe, the two sides of the equation are multiplied: they are highly volatile assets that have the potential to move from BRL 1,000 to BRL 1 million in just a few days – or to turn a billion into dust in a few hours. .

But how do you know which cryptocurrency is the best among the more than ten thousand projects on the market? “It’s like finding a needle in a pile of need,” says Cauê Mançanares, CEO of Investo.

To do this, there is a solution that is very popular in the investment world: index funds traded in exchange, called ETFs. Using the metaphor of the CEO of Investo, it’s like “buying a pile of herbs”.

To understand what this means, click play and check out our interview!

Understanding ETFs in exchange for cryptocurrency

These types of funds are just baskets of assets that seek to surpass a benchmark. In this case, cryptocurrency ETFs are often thematic: they invest in metaberse projects, web 3.0, or promising digital currencies.

“Instead of trying to find a specific project that will benefit the astronomical, the investor buys a capsule with the selected projects to waste hours on the best crypto in mining,” Mançanares comments.

But not everything is perfect

According to a survey by Seu Dinheiro, B3’s cryptocurrency ETFs have had a tremendous 2022 so far. In six months, the losses reach more than 60%:

ticker Variation (% of the year)
NFTS11 – 67.40%
ETHE11 – 59.86%
QETH11 – 59.67%
WEB311 – 56.39%
HASH11 – 51.25%
CHALLENGE11 – 49.49%
QDFI11 – 47.40%
BIT11 – 45.59%
QBTC11 – 45.00%
CRPT11 – 2.94%
Source: Google Finance

But Cauê Mançanares is not driven by short-term ups and downs. For him, investments in cryptocurrency, metaverse and web 3.0 are long-term, at least ten years.

And the reason for the wait is simple: cryptocurrencies are like the internet in the 1990’s. “If you had put money on Facebook ten years ago, where would you be now? It’s the same logic. “

Cauê Mançanares, CEO of Investo, is a guest on this week’s Crypto Chat. And in our next traditional million-dollar question, it also provides tips for investing on your own: don’t just buy cryptocurrencies, buy project segments.

To understand what this means, click play and check out our interview!

This article was first published in “Your Money in Your Morning” magazine. To receive this content in your email, sign up for this free link.

See also Seu Dinheiro’s highlights last week:

ELECTROBRAS PRIVATIZATION
How to invest in FGTS Eletrobras: see it step by step and find out if it’s worth it. The holder of the balance in the FGTS may allocate a maximum of half of the resources to the public offer of shares that will privatize the state-owned company. Learn the rules and see how to do it.

IT’S WORTH IT
Is it beneficial to buy Eletrobras shares with FGTS? Those who used the fund to invest in Petrobras and Valen made a profit of 3,200%. Funds raised from FGTS and invested in Petrobras and Valen have also surpassed CDI and Ibovespa since their inception.

IR 2022
Have you missed the 2022 income tax return period? Find out what to do. The official deadline for filing the 2022 income tax return ended on May 31st. Learn how to settle accounts with Lion now and pay the late fee.

THE END OF AN AGE
Are unicorns in danger of extinction? Why millions of startups suffer from high interest rates and need to adjust to survive. Despite the negative situation, experts consulted by Seu Dinheiro rule out the catastrophe in the sector, and one official is committed to growing the agreements.

SD SPECIAL
Vale (VALE3), B3 (B3SA3) and more than 40 companies are starting to return shares after the stock market crash, but should they do that? Despite the traditional short-term gains, experts point out that not all stock purchase programs can be considered positive, and investors need to look at them on a case-by-case basis before following the herd.

ASYMMETRIC VIEWS
The recession in Zima Blue tones – how to invest in the market to find its roots in the crisis. Processes like the present are part of the movements of the natural market; the aggressiveness of correction is related to the time we move away from our essence.

Have a great Saturday and a great weekend!

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