Frequently Asked Questions

What is Bitazu Capital?

Bitazu Capital is a cryptocurrency hedge fund which manages investors' cryptocurrency assets and provides them with better returns. After thorough research and analysis, we identify best-performing cryptocurrencies and design a diversified investment portfolio. This kind of diversification reduces investment risks and increases the chances of higher returns.

What is your offer?

We offer to invest in the Blockchain economy via the Bitazu Capital. Our current portfolio is displayed in the Google spreadsheet. We show high performance, high level of security and invest only in trusted assets and assets with high potential growth.

Where can I check my current balance?

After every investment you make in the fund, you will receive a mail with the total number of Bitazu units you own. The Net asset value (NAV) of each unit is published on our website daily. So, your net worth is: Net worth = (Bitazu units owned) * (NAV of Bitazu unit) We are building a dashboard to effectively show your investments and growth of your portfolio. It should be ready by end of Q2 2018.

How is the NAV of the Bitazu unit calculated?

Net asset value (NAV) represents a fund's per unit market value. Net asset value (NAV) is significant only for open-end funds. The total value of all portfolio assets are summed up in USD using Coinmarketcap's exchange rates. The price of the unit (NAV) in USD is obtained by dividing the value of all portfolio assets in USD by the total number of units.
The price of the unit (NAV) in BTC or ETH is calculated in a similar manner. The value of all assets expressed in BTC or ETH are summed up, and is divided by the number of units.

Is there a minimum/maximum timeframe for investment? Do I have to keep funds for specific time?

Yes, for 50% of your funds, the minimum lock-in period is of 6 months. However, there is no maximum time-frame.

Why are 50% of my funds locked for 6 months?

A sizeable portion of our funds are invested in early stage assets and ICOs. Since we enter ICOs in private and pre sale phases, these assets become illiquid until the ICO tokens become tradable on exchanges which can take anywhere between a month to an year. In addition to that, some of our early stage assets do not have a lot of liquidity till the time the team starts to deliver on technical milestones and the asset starts to gain mainstream investor attention.

What will happen if one of the tokens that Bitazu Capital holds undergoes a fork - such as Ethereum or Bitcoin has?

We will integrate the additional tokens into Bitazu Capital as soon as we are able to and then follow normal rebalancing procedure (and as such this token may or may not then form part of our fund composition). It is likely that the value of the fund will increase and this will be passed on to the fund investors.

Why not buy the underlying assets and manage the portfolio myself?

While managing portfolio yourself, you will miss out on

  • A diversified portfolio backed by research
  • ICO investment through private/pre sale
  • Rebalancing portfolio based on market dynamics
  • Securely storing cryptocurrencies in different compatible wallets.

How is this better than index funds (holding top 15 tokens)?

Of the top 15 tokens of January 1 2017, 8 tokens have fallen out of the top 15 within only one year. This is how fast the technology is evolving and merely holding top tokens will not generate returns.

What returns can I expect?

Cryptocurrencies are extremely volatile investment assets and probably the highest risk investment one can make right now. Taking a look at performance of our founders' portfolios, you can make some estimates on the kind of returns to be made in future. However, we do not promise any returns and advice you to invest a small portion of your total investment portfolio.

Do I pay taxes on the earnings?

Different countries have different tax rules. However, normally you are required to pay taxes on capital gains on the profit from the fund. Please consult your Chartered Accountant to understand your tax liabilities.

I have a friend I want to refer to the fund. How do I do that, and what benefits do I get?

Thanks for sharing the benefits of investing in our fund with your friend. Just drop us an email with the Email ID/phone number of your friend and we will reach out to him/her. If your referral ends up investing in our fund, you get 1% of the amount invested by him/her.

Do I require any previous knowledge or experience with cryptocurrencies?

No, you don't. At Bitazu Capital, our team of blockchain experts will get you off the ground for everything relating to blockchains over calls or even in-person meetings if deemed necessary.

Do I require any trading experience?

No. By investing via Bitazu Capital you no longer need to go through the hassle of doing market analysis or monitoring your trades. With our team of experts, we work round the clock to identify and invest in the right cryptocurrencies, thereby giving you great returns.

How do I start investing?

At Bitazu Capital, all you need to do is register yourself with us. As soon as you fill the form, our team of blockchain experts will get back to you to get the process started.

  • Sign up and complete the identity verification procedure (KYC)
  • After your identity has been verified and approved, we will share with you the BTC/ETH address of the Bitazu Capital.
  • Transfer the required funds (min. 1 ETH) to the address.
  • Once we receive the funds, you will receive a mail with details of the transaction and the Bitazu units allocated.
  • Please contact us for any other details.

What payments are accepted by Bitazu Capital?

You can deposit your funds for investing only in form of Bitcoins (BTC) or Ethereum (ETH). However if you don't have BTC/ETH, and wish to invest via fiat or cryptocurrencies, contact us and we would help you with the deposition process.

Can I invest with cash/wire transfer or cash/debit card?

No, at the moment we only accept Bitcoins (BTC) and Ethereum (ETH). If you wish to invest via fiat, contact us and we will help you in the deposition process.

I don't have ETH/BTC however I have other cryptocurrencies such as XRP. Can I use these to invest in the fund?

As mentioned earlier, at the moment, we only accept Bitcoins (BTC) and Ethereum (ETH). However, if you own other cryptocurrency assets, such as XRP, you can use the cryptocurrency exchange you already use to convert those funds into BTC/ETH and then transfer them to us. If you face any problems, contact us and we will get things sorted.

How do I get the BTC/ETH to invest with?

Exchanges, wallets and other services that allow to buy BTC or ETH with fiat currency. Prominent examples in India would be Koinex, Zebpay, Bitbns and the likes. You can also use peer to peer (P2P) exchanges such as Localbitcoins and LocalEthereum.

Is there any limit to the amount of investment?

No. You can invest as much as you find appropriate. However, as pointed out earlier, the lower cap is 1 ETH.

How do I know that my investment is complete?

After you send the ETH/BTC to Bitazu Capital's address, you will receive an email with the Bitazu units you have been allocated. That marks the success of your investment.

Is the Bitazu unit tradeable?

No. Bitazu unit represents a unit of Bitazu Capital. It is an entity to help us track your investments effectively. It is similar to the units which are allocated by normal mutual funds. However, the units are not cryptocurrency tokens, hence not tradeable.

How do I withdraw my ETH/BTC from Bitazu Capital?

Please note that 50% of your funds are subjected to a 6-months lock-in from the date of investment.

  • Send us an email from your registered Email ID with the amount of Bitazu units you want to withdraw and your receiving ETH/BTC wallet address.
  • Once we verify the investor and the wallet address, the ETH/BTC will be released.
  • It may take upto 48 hours for the withdrawal process to complete.

How do I convert my withdrawn ETH/BTC to fiat currency?

You can use exchanges, wallets and other services that allow to sell BTC or ETH for fiat currency. Prominent examples in India would be Koinex, Zebpay, Bitbns and the likes. You can also use P2P exchanges such as Localbitcoins and LocalEthereum .

Isn't cryptocurrency investment in India illegal after RBI's circular of April 6th?

No. This is the quote from April 6th - "To ring fence the RBI regulated entities (banks) from the risk of dealing with entities associated with virtual currencies, they (banks) are required to stop having business relations with the entities dealing in virtual currencies forthwith. And (they are also required to) unwind the existing relation in three months." said B P Kanungo, deputy governor of RBI.
So, banks are not allowed to deal with cryptocurrency exchanges in India. However, trading/investments by individuals in cryptocurrency is still legal. So, investments in funds such as Bitazu Capital are still legal. Also there is case going on in Supreme Court regarding the jurisdiction of RBI to make any rules in relation to the use of cryptocurrencies.
Update (23-5-2018): According to Bloomberg, the Indian government is planning to levy 18% GST on cryptocurrency trading.

If exchanges are banned in India, after the RBI circular, how do I buy ETH/BTC to invest?

The RBI circular states that banks should stop providing their services to centralised exchanges such as Koinex, Zebpay, Bitbns etc. in India within 3 months. There are many petitions which have been filed to counter this decision. While we wait for the outcome, in 3 months there are 2 possibilities:

  • RBI reverts its decision - This is work as usual.
  • RBI maintains its stance, and banks withdraw their support from exchanges in India - Cryptocurrencies still have value in the world, only banks are not allowed to work with the Indian exchanges. In such a case, one can use peer to peer (P2P) exchanges such as Localbitcoins to buy/sell BTC, or LocalEthereum to buy/sell ETH. These might not be as convenient as the other exchanges, however they are legal. If you face any issues, don't worry, our team of Blockchain experts will guide you through the process.

If RBI bans exchanges in India, isn't the value of my cryptocurrencies effectively zero?

No, cryptocurrencies are globally traded digital assets hence they will retain their actual value; only banks are not allowed to work with Indian exchanges. In such a case, one can use peer to peer (P2P) exchanges such as Localbitcoins to buy/sell BTC, or LocalEthereum to buy/sell ETH.

If banks are not allowed to work with Indian exchanges, how are Localbitcoins and LocalEthereum legal? Don't they also have bank accounts?

Localbitcoins is a company incorporated in Finland in 2012. It provides a way for individuals to exchange Bitcoins for fiat directly with each other (peer to peer). A central authority doesn't come into picture in these transactions. For that they charge a 1% commission in BTC. Since, the company does not deal with INR, it does not fall under the ban by RBI in India. LocalEthereum follows a similar model in ETH.

Are the P2P exchanges such as Localbitcoins and LocalEthereum safe?

The companies have taken many measures to make the process of buying/selling BTC/ETH safe and secure. They are one of the most trusted companies in the cryptocurrency space. It works as an escrow with a good dispute resolution protocol where any problem in the P2P trade will be referred to a third party moderator who'll make decisions by looking at the evidence presented in case of dispute. Please refer to this link for an in-depth understanding of the process. If you face any issues, don't worry, our team of Blockchain experts will guide you through the process.

Does the fund verify its investors?

Yes, we carry out a standard KYC verification procedure, which is mandatory. It is impossible to purchase or redeem the fund's units without being approved. Please note that the fund does not currently work with the citizens of USA and Singapore.

Why is KYC done?

KYC is a client identification program that verifies and maintains records of the identity and address of investors. The purpose is to prevent money laundering, terrorist financing, theft and so on.

What are the documents needed for KYC?

If you are an Indian national, you'll need to submit

  • Identity proof (Aadhaar/Driving Licence/Voter Id/Passport)
  • Address proof (bank statement/utility bill like water bill, electricity bill, broadband bill, etc.)

For non-Indian nationals

  • Identity proof - Passport or Driving licence
  • Address proof - bank statement or any utility bill

How does Bitazu Capital ensure the security of the investments? How do you minimize the risks of working with exchanges?

The fund provides security in the following ways:

  • We maximize storage of cryptocurrency assets on cold wallets such as Trezor and reduce to zero the amount of storage on exchange accounts.
  • We work with wallets with multi-signatures (operations are approved by at least two managers). This minimizes the risk of human errors.
  • We work only with reliable exchanges, where the maximum volume of trading transactions take place.