Risk profiling in any type of investment is important to help an investor to gain insight into the different risk they are exposed to before investing in cryptocurrencies.
Cryptoprofiler, which is now in beta, is a cryptocurrency too that wants to help any investor willing to invest in cryptocurrencies, with insight into the market, product and liquidity risks they may be exposed to as well as their risk exposure and tolerance before deciding when to invest in digital assets or which assets to invest in.
While there are many platforms providing data that can help users understand cryptocurrencies including risks, Cryptoprofiler is the first provider leveraging banking-grade investor risk profiling.
The platform is now in beta basically comprises of investor risk profiling and product risk classification, and will be used to assess a user's knowledge, experience, risk capacity and risk tolerance to cryptocurrency. Users or potential investors will also be able to access learning resources that educate them about cryptocurrency risks and behavior biases such that the investor will be capable of understanding the dynamic cryptocurrency market. There will also be a portfolio risk analysis tool that has an alert function.
For now, many people planning to put their money into cryptocurrencies will worry about many things including volatility, valuation where it is hard to place intrinsic value on the digital assets, liquidity issues such that they can be able to buy and sell without too much loss in the exchange rate, regulation issues, lack of investor protection, theft and fraud possibilities and faux technology.
These in-depth metrics by Cryptoprofiler will help them to save time that could be spent on investment research and comparison, as well as to empower better investment decisions.
A user takes visits their websites and carries out a simple and short quiz that awards a score defining what type of cryptocurrency investor they are or how they come around with risk and opportunity. These questions include their location, whether they invested or are currently investing in digital assets, age and their crypto investment plans.
Users will be able to login with their Twitter account and reveal opinions and topics of their interest in the cryptocurrency space by reviewing their past tweets. Users can also choose topics manually if without twitter accounts. Cryptoprofiler uses its own proprietary algorithm that can carry out social sentiment analysis. This way, a user gets a profile that provides insights about their risks and other preferences. The user will then get an investor profile with insights to behavioral biases and personalized list of cryptocurrencies based on topics of their interest.
They can also browse through available coins listed and compare them not only by the usual metrics such as volumes but also by industry sectors and emotions of social media mentions. It currently lists more than 2300 cryptocurrencies.
CEO & Co-Founder of Cryptoprofiler Gino Wirthensohn noted that the application will close the regulatory gap for cryptocurrencies which was "exposing retail investors to the inherent risks of cryptocurrencies."
The platform is powered by Riskifier a MiFID II compliant suitability and risk profiling assessment for banks and wealth managers which is included in the list of RegTech 100. The latter is the world's most innovative RegTech companies by FINTECH GLOBAL.
Cryptoprofiler was born on a hackathon and has successfully completed accelerator programs in Switzerland, Germany, and Asia.