Kenson Investment’s Ryan Lowman on Digital Asset Trends, Myths, and Investment Strategies

Ever since Bitcoin reached a new all-time high back in March 2024, digital assets have been on top of the minds of investors around the globe. However, while the historical track record of this novel asset class is undoubtedly highly impressive, millions of investors are still wary of getting involved due to the new technologies that are at play.

It is true that purchasing, storing, and transferring Bitcoin and other digital assets can easily lead to losing funds, or worse, running into fraudsters. However, with the right education and partner at your side, everyone can do it – says Kenson Investment CEO and Founder, Ryan Lowman.

Lowman has more than two decades of experience in financial markets and founded his investment consulting and management Kenson Investment in 2022. Currently, the firm oversees more than $20 million in client funds and counts over 250 clients.

We spoke to Lowman about his experience in digital asset investments, some of the biggest misconceptions, and how to stay safe in this tricky environment.

Cryptonews: How do you differentiate Kenson Investments from other asset management firms specializing in digital assets? What unique opportunities do you see in this market?

Ryan Lowman: First and foremost, we rely on innovative investment strategies, such as proprietary algorithmic trading strategies that leverage machine learning, as well as AI for improved market forecasting and trading efficiency.

Aside from unique and new investment strategies, we are very proud about our client dashboard interface, which is also available as an app on the iPhone and Android app stores. Our clients also serves as an educational platform designed to enhance our client’s journey with in-depth educational videos, white papers, and detailed reports to keep clients informed about market trends, risks, and opportunities.

Cryptonews: In your view, what are the biggest misconceptions or myths about cryptocurrency investments that need to be addressed in the mainstream?

RL: Certainly, one prevalent myth is that cryptocurrency is primarily used for illegal activities. While it’s true that, like any monetary system, there are bad actors who use crypto for illicit transactions, these represent only a small portion of its use. In reality, many legitimate businesses and individuals utilize cryptocurrencies for a variety of legal purposes, including investing, international payments, and participating in decentralized finance.

Another common misconception is that cryptocurrencies have no real-world value. This myth overlooks the broader utility and technological advancements behind cryptocurrencies. Blockchain technology, which underpins these digital assets, offers innovative solutions to numerous problems, such as providing secure digital identities, enabling smart contracts, and facilitating decentralized applications.

There’s also a belief that investing in cryptocurrencies will make one rich quickly. While some individuals have indeed accumulated significant wealth in the cryptocurrency market, it is highly volatile and can result in substantial losses as well. It’s important for potential investors to understand the risks involved and not view crypto as a guaranteed path to quick riches.

Lastly, there’s the misconception that crypto coins are completely unregulated. In reality, regulatory oversight of cryptocurrencies varies by country and is becoming increasingly stringent to address issues like fraud and money laundering. Governments and regulatory bodies are actively working to create frameworks that ensure the safe and legal use of cryptocurrencies.

Cryptonews: As you already pointed out, Bitcoin and Co. are seen by many as get-rich-quick schemes, while others expect them to become worthless any day now. What is your philosophy on digital asset investments, and how do you safeguard funds from the industry’s highly volatile nature?

RL: Investing in digital assets requires a strategic and measured approach similar to traditional markets. It’s about having a balanced investment approach along with a rigorous risk management system.

At Kenson, we always emphasize informed decision-making. We believe in conducting thorough research to understand the technology, use cases, team, and market potential behind any cryptocurrency before investing. This includes diversifying information sources to avoid biased or one-sided views.

We also maintain a long-term perspective, focusing on the potential of digital assets rather than short-term gains. The technology and regulatory environment surrounding digital assets are still evolving, which can lead to significant long-term opportunities.

On the other hand, we also put great emphasis on risk management. As a general rule of thumb, we advise investing only money that you can afford to lose, given the high volatility and potential for rapid price swings in the crypto market. Diversifying investments across different asset classes, such as stocks, bonds, and real estate, helps to spread risk.

When it comes to crypto investors also need to look at additional security measures for safeguarding funds. Using secure wallets, such as hardware wallets or cold storage options, is generally safer than online wallets. Enabling two-factor authentication (2FA) on all cryptocurrency exchange accounts and keeping private keys or seed phrases stored in a secure and private location are additional layers of protection.

Last but definitely not least, understanding regulations is equally important. Investors should try to stay informed about the regulatory landscape in their country, especially when it comes to taxes and legal requirements.. Using compliant exchanges and platforms that follow regulatory guidelines is typically the best approach to remain fully compliant.

Cryptonews: How does Kenson Investments factor in global economic indicators in its cryptocurrency investment strategies?

RL: Interest rates play a significant role in our analysis. Like with traditional markets, central banks’ interest rate policies can impact cryptocurrency prices, as lower interest rates usually lead to fiat currency depreciation, making cryptocurrencies more appealing as a hedge. Conversely, rising interest rates might cause investors to shift funds from high-risk assets like cryptocurrencies to safer, yield-bearing instruments.The same applies to inflation rates, CPI, and PPI.

Historically, the cryptocurrency has also been closely tied to to US stock market indices like the S&P 500. We’re closely watching these markets to predict how Bitcoin and other digital assets might perform in the near future, especially regarding a short and medium term outlook.

Finally, we subscribe to economic calendars to track important upcoming events like central bank meetings, economic data releases, and geopolitical developments. Setting up alerts for significant economic indicators that might impact our crypto portfolio ensures that we can react promptly. Additionally, we invest in high-quality analytical reports that cover both traditional and crypto markets to stay informed.

Cryptonews: What are some emerging technologies within the digital asset space are you most excited about in 2024?

RL: One of the most promising areas is without a doubt Decentralized Finance (DeFi) 2.0. The next wave of DeFi protocols and applications built on existing DeFi infrastructure, user experience, and financial products. This includes the development of algorithmic stablecoins such as Frax and Terra’s newer initiatives, as well as decentralized derivatives and options platforms like dYdX and Synthetix.

Another area of significant interest is Web3 and decentralized web development. Technologies in this space are focused on building a decentralized web where users have control over their data and digital identity, such as decentralized storage solutions like Filecoin and Arweave, as well as decentralized identity systems such as Ethereum Name Service (ENS) and Sovrin.

Furthermore, interoperability protocols are promising because they enable different blockchains to communicate and transfer assets seamlessly. Some notable projects in this area include cross-chain bridges like Polkadot’s parachains and Cosmos’ Inter-Blockchain Communication (IBC), as well as interoperability networks like Chainlink’s Cross-Chain Interoperability Protocol (CCIP) and Quant’s Overledger.

Of course, in 2024, AI technology and the integration of Real-World Assets (RWAs) into the blockchain ecosystem are certainly experiencing fast growth. These technologies further extend the capabilities and applications of digital assets, promising even greater innovation and adoption in the coming years.

Thanks to Ryan Lowman for participating in this interview.