Frequently Asked Questions

General

Bitcoin is a digital payment system with no intermediaries or banks. It was invented by a person or group using the alias Satoshi Nakamoto, and released as open-source software in 2009.

Bitcoin transactions are sent from and to Digital Bitcoin Wallets which can be downloaded on your computer or mobile phone.

As a new user, you can get started with Bitcoin without understanding the technical details.

You can purchase Bitcoins from your local Bitcoin Exchange in your local currency and transfer it to your Digital Bitcoin Wallet which you can install on your computer or mobile phone.

You can disclose your Digital Bitcoin Wallet addresses to your friends so that they can pay you or vice versa. In fact, this is pretty similar to how email works.

Bitcoin and Altcoins like Ethereum and Ripple etc. are collectively termed as Digital / Virtual / Crypto Currencies.

A crypto currency (or crypto currency) is a digital asset designed to work as a medium of exchange using cryptography to secure the transactions and to control the creation of additional units of the currency. Crypto currencies are classified as a subset of digital currencies, alternative currencies and virtual currencies. Bitcoin, created in 2009, was the first decentralized crypto currency. Since then, numerous crypto currencies have been created. These are frequently called Altcoins e.g. Ethereum, Ripple, Lite coin etc.

Bitcoin is digital money and easy to carry. Instant payment can be made to anyone, anywhere in the world with minimal fees and transactions cannot be reversed for any reason. It is decentralized and independent of any government or banking authorities. Bitcoin is great for saving because there are no banks involved. You are you own bank, banker and customer.

Bitcoin is the best performer of all asset classes i.e. Gold, Real Estate and Equities. Bitcoin is more popular than gold among investors, as a hedge against rising global uncertainties.

Japan has already passed a law in April 2017 recognizing bitcoin as a legal payment method which implies that the transactions and price will increase manifold over a period of time.

Bitcoin was designed to increase in value as time goes by. There will only be 21 million Bitcoins which will ever be issued out of which 16.6 million have already been issued. This absolute scarcity of Bitcoins is one of the biggest reasons why they are such a good investment. As the user count of Bitcoin increases, the price of bitcoin also increases. This causes no problems for the use of Bitcoin since a single bitcoin is divisible to very small pieces. One bitcoin can be divided into 100 million parts just as $1 or 1 Euro is divisible into 100 parts.

As the supply of Bitcoins is limited the value of a single bitcoin will go up by thousands of dollars. As each bitcoin is divisible into 100 million units we will soon be using smaller units of the currency to shop for the smallest thing.

Bitcoin Trading Fund or ‘BTF’ collects Bitcoins from a number of investors and invests the collective investment in Digital currency markets globally managed by a professional Fund Manager. The Income / gains generated from this collective investment are distributed proportionately amongst the investors in Bitcoins after deducting applicable expenses.

You can invest a minimum of 0.1 bitcoin in BTF. You can redeem your Investments anytime in Bitcoins.

Bitcoin was the first Digital currency to be launched in 2009. The success of Bitcoin has led to emergence of many other digital currencies e.g. Ethereum, Ripple, and Litecoin etc. which are collectively termed as "Altcoins" or Alternative Coins. Thus Bitcoins and Altcoins are collectively termed as Cryptocurrencies or Virtual Currencies or Digital currencies.

Cryptocurrencies can be bought and sold through cash and Digital Currency Exchanges. Digital Currency Exchanges or Cryptocurrency Exchanges are businesses that allow customers to buy, sell and trade cryptocurrencies for other assets such as conventional fiat money or different cryptocurrencies. You can choose your country and payment method to find your Local Digital Currency Exchange by clicking here.

Cryptocurrency Trading involves buying and selling of cryptocurrencies such as such as Bitcoin, Ethereum or Litecoin on global Digital Currency Exchanges. It involves exchanging your currency into another kind of currency and then exchanging it back when the price changes for a profit.

Please Note: Cryptocurrencies are very volatile and hence are prone to price fluctuations on a daily basis without warning. This means that the past performance of a cryptocurrency is not an indication of its future performance and achieving consistent profitability is never guaranteed.

Bitcoins and Altcoins are collectively termed as Cryptocurrencies or Virtual Currencies or Digital currencies.

Cryptocurrency Mining or Digital Currency Mining is a validation of Cryptocurrency transactions by miners.

Mining is the process by which cryptocurrency transactions are verified by miners and added to the public ledger known as the Block chain. It is also the means through which new cryptocurrencies are released.

Bitcoin Transactions occur when one person pays another for goods or services. The transactions are verified by Bitcoin Miners and are publicly recorded into blocks and eventually into the blockchain. The Blockchain is a public ledger which keeps the record of all the Bitcoin transactions ever executed. The Bitcoin miners are rewarded with transaction fees and well as newly released bitcoin.

A Miner is basically anyone with access to the internet and suitable hardware. In the earliest days of Bitcoin, mining was done with CPUs from normal desktop computers. Graphics cards or graphics processing units (GPUs) were found to be more effective at mining than CPUs and became dominant as Bitcoin gained popularity. Thereafter hardware known as an ASIC, which stands for Application-Specific Integrated Circuit was designed specifically for mining cryptocurrencies.

The mining process involves compiling recent transactions into blocks and trying to solve a computationally difficult puzzle. The participant who first solves the puzzle gets to place the next block on the block chain and claim the rewards. The rewards are both the transaction fees associated with the transactions compiled in the block as well as newly released bitcoin.

Mining is of two types Remote Hosted Mining and Cloud Mining:

Remote Hosted Mining is a process where users host their mining hardware in a remote datacentre and have the required technical knowledge and mining experience to manage and maintain the mining hardware. The user pays a fee to the hosting company to cover maintenance and electricity costs.

Cloud Mining is the process whereby a miner purchases a part of the mining power of hardware hosted and owned by a Cloud Mining services provider. The service provider manages and maintains the mining hardware and charges fixed maintenance and electricity fees. The cost of entry and subsequent risk is far lower than in comparison with the remotely hosted model.

Crytocurrency transactions have increased manifold and will continue to increase with time. Cryptocurrency Mining is the only way to release new cryptocurrency into circulation. The miners also earn transaction Fees on verifying cryptocurrency transactions thus assuring constant Return on Investment.

Mining is competitive and today can only be done profitably with the latest ASICs. When using CPUs, GPUs, or even the older ASICs, the cost of energy consumption is greater than the revenue generated.

BTF has been founded by professional bankers and experts in Digital currency markets.

You can invest in Digital Currency markets on your own. However Global Digital currency markets can be tricky, difficult to learn and make money. Bitcoin is Global and the markets never close, hence monitoring your investments constantly can be difficult and tiresome.

Bitcoin Exchanges are unregulated, unauthorized and unaudited. Bitcoin Trading Fund allows the investors to invest in Bitcoins without the challenges of storing, safekeeping and price volatility related to Bitcoins or Altcoins.

You can invest as little as 0.1 bitcoin to create a diversified portfolio which will cost you a huge amount to assemble and maintain yourself. The risk is diversified as BTF invests and holds multiple currencies. If one currency goes down, there will be others that compensate for it. You can easily purchase and redeem BTF units anytime you need cash.

The funds are managed by professional fund Managers using proven investment strategies, most advanced tools and genuine practices which provide our investors with the highest returns.

Bitcoin Trading Fund accepts only Bitcoins as Investment from investors. In case the investors have Bitcoins, they can invest their bitcoin directly with Bitcoin Trading Fund or can buy Bitcoins.

Buy your Bitcoin

  • The investors can purchase Bitcoins from their local Bitcoin Exchange in their local currency
  • They can transfer the Bitcoins to their Digital Bitcoin Wallet which they can install on their computer or mobile phone.
  • The investors can select their Digital Bitcoin Wallet from here.
  • The investors can select their country and Local Bitcoin Exchange here.
Invest your Bitcoin with Bitcoin Trading Fund
  • The investors have to register with Bitcoin Trading Fund (BTF).
  • The investors Transfer their Bitcoins to BTF’s digital Bitcoin wallet. The investors can transfer a Bitcoins to the fund’s Wallet
  • The investors are issued fund units or shares against their investment by the fund.
  • The investors Bitcoin is added into a pool of Bitcoins from other investors.
  • The Bitcoin pool is invested by professional fund managers in global Digital Currency Markets.
  • The Fund generates Returns on the Pooled Investments
  • BTF divides the pool into parts and gives the returns back to the investors in Bitcoins.
  • Investors can do partial or full withdrawal of their investment as per their need anytime. The investments have a lock in period of 1 year from the date of allotment.

  • Choose your country and payment method to find your Local Bitcoin Exchange to trade your local currency for Bitcoins and Altcoins here.
  • You can move your Bitcoins to your Digital Bitcoin Wallet from your Bitcoin Exchange to avoid loss of bitcoins due to exchange hacks and scams.

You have to register with Bitcoin Trading Fund (BTF) and have to transfer your Bitcoins to BTF’s digital Bitcoin wallet.

You can login into your account and check the following reports

  • BTF History

    Advises regarding the status of your Transaction.

  • BTF

    Advises the status of the documents submitted

  • BTF Details

    1. Holding Report – Status of Investments held with the Fund
    2. Gain / Loss Report – Details of Realised Gain/Loss
    3. Transaction Statement – Details of Transactions
    4. Distributor Remuneration Report – Details regarding Distributors Commission/ Brokerage

You can login into your account and Click on “Purchase Units” section to Purchase Additional units

You can login into your account and Click on “Redeem Units” section to Redeem/ withdraw your investment.

Investors can do partial or full withdrawal of their investment as per their need anytime. The investments have a lock in period of 1 year from the date of allotment.

Fund Information

The investment objective of the Fund is to generate long-term capital appreciation to unit holders from a portfolio of Digital/ Virtual/ Crypto Currencies invested in Global Digital Currency markets through appropriate diversification and research based investment approach. However, there can be no assurance that the investment objective of the Fund will be realized.

The fund will allocate 100% Assets in Digital/ Virtual/ Crypto Currencies.

The funds will invest in Digital / Virtual/ Crypto currencies based on the Value proposition offered by the Currency and Potential for Future Growth.

The investment objective of the Fund is to generate long-term capital appreciation to unit holders from a portfolio of Digital/ Virtual/ Crypto Currencies invested in Global Digital Currency markets.

The portfolio will be built by Investing in Digital Currencies which have been thoroughly researched.

The fund will reduce the risk of the portfolio through adequate diversification by spreading investments over a wide range of Crypto Currencies.

The fund will engage in an ongoing Review of global Digital Currency Markets and economic parameters

BTF gives you the returns with the fees already deducted from the Investment pool.

The investors are issued fund units or shares against their investment by the fund. The income / gains distribution among the investors is done by calculating the fund “Net Asset Value” or NAV.

The NAV of Fund is the cost of one unit or share of the fund.

NAV is the total market value of all the assets held in the fund less the liabilities, divided by all the outstanding units. The Assets of the fund will be investments in Bitcoins and other Digital currencies. The Liabilities of the fund will be expenses that have accrued over time and yet to be paid.

NAV per Unit = (Assets – Debts) / (Number of Outstanding Units)

Let us understand NAV with the help of an example

Assume there are two investors 'A' and 'B' who have invested in Bitcoin Trading Fund The fund has decided to issue fund units/shares at $1.

So NAV per unit/share is 1

'A' invests $ 100 and 'B' invests $ 200.

'A' will get 100 units and 'B' will get 200 units.

The total corpus of the fund will be $100 + $200 = $300.

Now assume the fund manager makes the investment grow and the corpus becomes $ 900.

The NAV will be calculated as:

NAV per Unit = (Assets – Debts) / (Number of Outstanding Units)

($ 900 - 0) / (300)= 3

The NAV is 3.

So 'A' value of investments will be 100 units x 3 = $ 300

and 'B' value of investments will be 200 units x 3 = $ 600

The above example is illustrated in the table below:

Fund Investor Investment Amount
($)
NAV as on 01.01.2017
($)
Units Allotted NAV as on 01.03.2017
($)
Value as on 01.03.2017
($)
Returns
BTF A 100 1 100 3 300 200%
B 200 1 200 3 600 200%

  • General

    1. Bitcoin Trading Funds and securities investments are subject to Digital Currency market risks and there is no assurance or guarantee that the Fund's objective will be achieved.
    2. As the price / value / of the Digital Currencies in which the Fund invests fluctuates, the value of investment in the Fund may go up or down.
    3. Bitcoin Trading Fund / www.bitcoincointradingfund.com / Om99 Online Private Limited are not responsible or liable for any loss resulting from the operation of the Fund.
    4. Past performance of Om99 Online Private Limited / Bitcoin Trading Fund or its affiliates does not indicate the future performance of Bitcoin Trading Fund.
    5. Bitcoin Trading Fund is only the name of the Fund and does not, in any manner, indicate either the quality of the Fund or its future prospects and returns.
    6. The NAV of the Funds’ Units may be affected by change in the general market conditions, factors and forces affecting Digital Currency markets, various markets related factors and trading volumes.
    7. The present Fund is not a guaranteed or assured return Fund.
    8. Investment in Bitcoin Trading Fund Units involves investment risks such as trading volumes, settlement risk, liquidity risk, default risk including the possible loss of principal.
  • Fund-specific Risk Factors

    1. Bitcoin Trading Fund is a sector fund. Since the Fund will only invest in Digital/ Virtual/ Crypto Currencies the investment universe of the fund will be restricted. This will lead to less diversification on the stocks allocation.
    2. Digital/ Virtual/ Crypto Currencies are volatile in nature and are subject to price fluctuations on daily basis. The volatility in the value of the Digital/ Virtual/ Crypto Currencies is due to various micro and macroeconomic factors affecting the Digital Currency markets. This may have adverse impact on individual digital currencies /sector and consequently on the NAV of Fund.
    3. The inability of the Fund to sell Digital/ Virtual/ Crypto Currencies held in the Fund portfolio may result, at times, in potential losses to the Fund, should there be a subsequent decline in the value of the Digital/ Virtual/ Crypto Currencies held in the Fund portfolio.
    4. The Fund would be investing in digital currencies in the global Digital currency markets. Digital Currency Markets are volatile and hence are prone to price fluctuations on a daily basis. The liquidity of the Fund's investments is inherently restricted by trading volumes and settlement periods. In the event of an inordinately large number of redemption requests, or of a restructuring of the Fund's investment portfolio, these periods may become significant. In view of the same, Om99 Online Private Limited directors have the right in their sole discretion to limit redemptions (including suspending redemptions) under certain circumstances.

Investments in Digital/ Virtual/ Crypto Currencies shall carry various risks such as inability to sell currencies, Volatility, trading volumes and settlement periods, liquidity risk etc. Whilst such risks cannot be eliminated, they may be mitigated by diversification of the fund portfolio.

The fund has incorporated many safeguards to manage risk. The portfolio of the Fund will be constructed in accordance with internal investment restriction as investment limits are defined and monitored.

The investment universe of the digital currencies will be limited to only currencies which offer a strong value proposition and have high growth potential.

For risk control, the following may be noted:

  1. Restrictions on Redemptions
  2. Restrictions may be imposed when there are circumstances leading to a systemic crisis or event that severely constricts the market liquidity or the efficient functioning of the market such as:
    1. Liquidity Issues: When Digital Currency Markets at large become illiquid affecting almost all currencies rather than any specific currency.
    2. Market failures, exchange closure: When Digital Currency markets are affected by unexpected events which impact functioning of exchanges or the regular course of transactions. Such unexpected events could also be related to political, economic, military, monetary or other emergencies.
    3. Operational Issues: When exceptional circumstances are caused by force majeure, unpredictable operational problems and technical failures (e.g. a black out).

Restrictions on redemption may be imposed for a specified period of time not exceeding 10 Business Days in any period of 90 days. Any restriction on Redemption of the units shall be made applicable only after specific approval of the Board of Directors of the Om99 Online Private Limited.

 

  1. When restrictions on redemption is imposed, the following procedure will be applied:
    1. No redemption requests up to 0.01 Bitcoin shall be subject to such restriction.
    2. Where redemption requests are above 0.1 Bitcoin, Om99 Online Private Limited shall redeem the first 0.01 Bitcoin without such restrictions and remaining part over and above 0.01 Bitcoin shall be subject to such restrictions.

Bitcoin Trading Fund is not assuring any returns nor is it assuring that it will make periodic distributions. All income / gains distributions are subject to the investment performance of the Fund, availability of distributable profits.

No person has been authorized to issue any advertisement or to give any information or to make any representations other than that contained in this Fund Information Document.

Investors should study the Fund Information Document carefully in its entirety and should not construe the contents thereof as advice relating to legal, taxation, investment or any other matters. Investors are advised to consult their legal, tax, investment and other professional advisors to determine possible legal, tax, financial or other considerations of subscribing to or redeeming Units, before making a decision to invest/redeem Units.

Become a Distributor

Bitcoin Trading Fund (BTF) offers individuals, companies and Institutions to become BTF Distributors and earn upfront and Trail commission on the referred investments.

Bitcoin Trading Fund ( BTF ) pays Upfront commission (UC) to its distributors in case the investments from the investor are routed through the Distributor and pays Trail Commission (TC) to its distributors for as long as the Investor's money is held in the fund.

The investor has to mention the Distributor code of the distributor at the time of entering their details for the investments to be mapped to the distributor.

Please read Bitcoin Trading Fund Distributor - Terms and Conditions for more details.

You can register yourself as a Bitcoin Distributor by selecting the Distributor option at time of Sign up.

Bitcoin Trading Fund ( BTF ) pays Upfront commission (UC) to its distributors in case the investments from the investor are routed through the Distributor and pays Trail Commission (TC) to its distributors for as long as the Investor's money is held in the fund.

The investor has to mention the Distributor code of the distributor at the time of entering their details for the investments to be mapped to the distributor.

An upfront commission is generally around 1% and is paid to the distributor on the same month as the purchase of fund units by the investor

Trail commission (TC) is generally around 1% p.a. of the value invested by the investor. Trail Commission is calculated daily as a percentage of the assets under management of the distributor and is paid every month.

Please Note: Investments in Bitcoin Trading Fund (BTF) are subject to lock-in period of 1 year from allotment.

Please read BTF Distributor Commission / Brokerage Structure for more details.

You can click on Redeem Upfront Commission / Trail Commission to redeem your Upfront Commission / Trail Commission.