Metalpha Technology Holding Limited (NASDAQ: MATH) is making waves in the Asian market as a premier provider of crypto wealth management services, drawing parallels to the renowned MicroStrategy (MSTR). Founded by CEO Adrian Wang, Metalpha is dedicated to establishing a sustainable crypto ecosystem by offering effective hedging solutions in an industry characterized by volatile cycles. Through strategic use of derivative products, investors can mitigate risks and maximize returns even during market turbulence.
Strategic Partnerships and Industry Recognition
Metalpha, formerly known as Dragon Victory International Limited (NASDAQ: LYL), boasts the backing of Antalpha Technologies Limited, a global leader in blockchain financial services. Over the past year, Metalpha has not only bolstered its in-house trading, research, and compliance capabilities but has also forged key partnerships with prominent entities like Litecoin Foundation, NextGen Digital Venture, GRVT, and ParaX. As a Nasdaq-listed company, Metalpha holds Type 4 and Type 9 licenses from the Securities and Futures Commission of Hong Kong, enabling it to provide securities advisory and asset management services through its subsidiary, LSQ Capital Limited.
Trading Innovations and Financial Performance
As a frontrunner in crypto derivatives, Metalpha offers clients tailor-made products like Accumulator and Snowball, crafted using advanced mathematical models and sound financial engineering principles. With a seasoned team boasting experience from Wall Street banks, the company reported a substantial increase in derivative products issued, reaching $382 million under its wealth management arm. This surge translated into a remarkable fiscal-year income jump from $0.1 million to $5.7 million in 2023, marking a remarkable 5,600% growth.
Embracing Bitcoin and Future Prospects
Metalpha stands as a staunch proponent of Bitcoin and blockchain technology, foreseeing widespread adoption following the approval of Bitcoin ETFs. Positioned as a growth-oriented crypto stock akin to MicroStrategy, Metalpha focuses on Bitcoin investments with a specific emphasis on the wealth management sector. The company's stock performance has been robust, registering an 86% year-on-year increase as of March 3, 2024, according to Yahoo Finance.
Distinguishing Factors from MicroStrategy
While drawing parallels with MicroStrategy, Metalpha differentiates itself through its business model, geographic presence, and product offerings. Operating out of Hong Kong, Metalpha benefits from the region's proactive stance on Web3 policies, signaling a positive trajectory for the digital assets industry. The company's revenue growth is closely tied to market conditions, with a surge in active user base driving subscription rates in a bullish market.
Metalpha's product portfolio extends beyond Bitcoin and Ethereum to encompass a wide array of mainstream cryptocurrencies, offering bespoke hedging solutions and derivative products tailored to institutional clients. Through initiatives like the Next Generation Fund I in collaboration with NextGen Digital Venture Limited, Metalpha is expanding its institutional product offerings, providing compliant avenues for exposure to the crypto market.
Despite nuanced differences, Metalpha positions itself as the MicroStrategy of Asia, embodying the spirit of the crypto revolution and the widespread adoption of Bitcoin.
Frequently Asked Questions
Can the government take your gold?
Because you have it, the government can't take it. It is yours because you worked hard for it. It belongs entirely to you. This rule may not apply to all cases. You can lose your gold if you have been convicted for fraud against the federal governments. You can also lose precious metals if you owe taxes. However, even though your taxes have not been paid, you can still keep your precious metals, even though they are considered the property of United States Government.
How to open a Precious Metal IRA
First, decide if an Individual Retirement Account is right for you. To open the account, complete Form 8606. You will then need to complete Form 5204 in order to determine which type IRA you are eligible. This form must be submitted within 60 days of the account opening. Once you have completed this form, it is possible to begin investing. You can also contribute directly to your paycheck via payroll deduction.
To get a Roth IRA, complete Form 8903. Otherwise, the process will be identical to an ordinary IRA.
To qualify for a precious-metals IRA, you'll need to meet some requirements. The IRS requires that you are at least 18 years old and have earned an income. For any tax year, your earnings must not exceed $110,000 ($220,000 for married filing jointly). Additionally, you must make regular contributions. These rules apply whether you're contributing through an employer or directly from your paychecks.
You can invest in precious metals IRAs to buy gold, palladium and platinum. However, you won't be able purchase physical bullion. This means you won't be allowed to trade shares of stock or bonds.
You can also use your precious metals IRA to invest directly in companies that deal in precious metals. This option is offered by some IRA providers.
There are two major drawbacks to investing via an IRA in precious metals. First, they don't have the same liquidity as stocks or bonds. It's also more difficult to sell them when they are needed. They don't yield dividends like bonds and stocks. Also, they don't generate dividends like stocks and bonds. You will eventually lose money rather than make it.
Do you need to open a Precious Metal IRA
It is essential to be aware of the fact that precious metals do not have insurance coverage before opening an IRA. If you lose money in your investment, nothing can be done to recover it. This includes all investments that are lost to theft, fire, flood, or other causes.
You can protect yourself against such losses by purchasing physical gold and silver coins. These items are timeless and have a lifetime value. If you were to sell them today, you would likely receive more than what you paid for them when they were first minted.
If you decide to open an IRA account, choose a reputable company that offers competitive rates and products. It is also a smart idea to use a third-party trustee who will help you have access to your assets at all times.
Do not open an account unless you're ready to retire. So, don't forget about the future!
Are You Ready to Invest in Gold?
How much money you have saved, and whether or not gold was an option when you first started saving will determine the answer. You can invest in both options if you aren't sure which option is best for you.
You can earn potential returns on your investment of gold. Retirement investors will find gold a worthy investment.
Gold is more volatile than most other investments. Therefore, its value is subject to change over time.
But this doesn't mean you shouldn't invest in gold. This just means you need to account for fluctuations in your overall portfolio.
Another benefit to gold? It's a tangible asset. Unlike stocks and bonds, gold is easier to store. It can be easily transported.
You can always access gold as long your place it safe. You don't have to pay storage fees for physical gold.
Investing in gold can help protect against inflation. Gold prices are likely to rise with other commodities so it is a good way of protecting against rising costs.
Also, you'll reap the benefits of having some savings invested in something with a stable value. Gold usually rises when the stock market falls.
Investing in gold has another advantage: you can sell it anytime you want. You can easily liquidate your investment, just as with stocks. You don't even need to wait for your retirement.
If you do decide to invest in gold, make sure to diversify your holdings. Don't put all of your eggs in one basket.
Also, don't buy too much at once. Begin by buying a few grams. Then add more as needed.
It's not about getting rich fast. Instead, the goal is to accumulate enough wealth that you don't have to rely on Social Security.
Gold may not be the most attractive investment, but it could be a great complement to any retirement strategy.
How much of your portfolio should be in precious metals?
Before we can answer this question, it is important to understand what precious metals actually are. Precious metals refer to elements with a very high value relative other commodities. This makes them extremely valuable for trading and investing. The most traded precious metal is gold.
There are however many other types, including silver, and platinum. The price of gold tends to fluctuate but generally stays at a reasonably stable level during periods of economic turmoil. It is not affected by inflation or deflation.
As a general rule, the prices for all precious metals tend to increase with the overall market. But they don't always move in tandem with one another. If the economy is struggling, the gold price tends to rise, while the prices for other precious metals tends to fall. This is because investors expect lower rates of interest, which makes bonds less attractive investments.
When the economy is healthy, however, the opposite effect occurs. Investors want safe assets such Treasury Bonds and are less inclined to demand precious metals. These precious metals are rare and become more costly.
Diversifying across precious metals is a great way to maximize your investment returns. Additionally, since the prices of precious metals tend to rise and fall together, it's best to invest in several different types of precious metals rather than just focusing on one type.
Statistics
- Indeed, several financial advisers interviewed for this article suggest you invest 5 to 15 percent of your portfolio in gold, just in case. (aarp.org)
- If you accidentally make an improper transaction, the IRS will disallow it and count it as a withdrawal, so you would owe income tax on the item's value and, if you are younger than 59 ½, an additional 10% early withdrawal penalty. (forbes.com)
- If you take distributions before hitting 59.5, you'll owe a 10% penalty on the amount withdrawn. (lendedu.com)
- Gold is considered a collectible, and profits from a sale are taxed at a maximum rate of 28 percent. (aarp.org)
- You can only purchase gold bars at least 99.5% purity. (forbes.com)
External Links
law.cornell.edu
- 7 U.S. Code SS7 – Designation of boards for trade as contract markets
- 26 U.S. Code SS 408 – Individual retirement accounts
finance.yahoo.com
wsj.com
- Saddam Hussein's InvasionHelped Uncage a Bear in 1990 – WSJ
- You want to keep gold in your IRA at home? It's Not Exactly Legal – WSJ
forbes.com
- Gold IRA, Add Sparkle to Your Retirement Nest egg
- Understanding China's Evergrande Crisis – Forbes Advisor
How To
Tips for Investing with Gold
Investing in Gold remains one of the most preferred investment strategies. This is because there are many benefits if you choose to invest in gold. There are several ways to invest in gold. There are many ways to invest in gold. Some prefer buying physical gold coins while others prefer gold ETFs (Exchange Traded Funds).
You should consider some things before you decide to purchase any type of gold.
- First, check to see if your country permits you to possess gold. If so, then you can proceed. You can also look at buying gold abroad.
- You should also know the type of gold coin that you desire. You can choose between yellow gold and white gold as well as rose gold.
- The third factor to consider is the price for gold. It is best to start small and work your way up. One thing that you should never forget when purchasing gold is to diversify your portfolio. Diversify your investments in stocks, bonds or real estate.
- Don't forget to keep in mind that gold prices often change. Keep an eye on current trends.
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By: Yiwei Wang
Title: Metalpha Technology: Leading the Way in Sustainable Crypto Investing
Sourced From: bitcoinmagazine.com/markets/asias-microstrategy-metalpha-on-hedging-for-sustainable-crypto-investing-
Published Date: Fri, 29 Mar 2024 14:00:00 GMT
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