Today we bring you news from Austria – there’s an English version of the website for non-German speakers. With three risk models for its standard portfolios, this is an interesting option for those looking to start investing in cryptocurrency. Yet further evidence of the rapid progress of cryptos towards the mainstream.
Coinpanion, a new crypto platform for retail investors, has raised a €1.8 million in seed investment round.
Those backing the company, founded in Vienna in 2019, include lead investor High-Tech Gründerfonds (HTGF), a venture capital outfit.
Patrick Pöschl, co-founder of the Munich-based robo-advisor Scalable Capital, Christopher Oster, co-founder and CEO of the insurance manager Clark, Florian Gschwandtner, co-founder of fitness app Runtasti, Johann Hansmann, and Frank Westermann, co-founder of the diabetes app mySugr.
The fintech start-up says it simplifies the process of investing into crypto including automated allocation into different currencies.
Users can choose from a range of portfolios that the firm says are risk-targeted with pre-selected cryptocurrencies with ongoing savings plans also available.
After a year of going live, it says the platform is now managing “several million euros” in cryptocurrency investments.
Historical Performance And IFISA Process Guide
That figure is the result of over £24 million of loans facilitated on the site, as we bring individuals looking for a good return on capital together with carefully vetted small companies seeking funds for growth. Bear in mind that lenders’ capital is at risk. Read warnings on site before committing capital.
All loans on site are eligible to be held in a Money&Co. Innovative Finance Individual Savings Account (IFISA), up to the annual ISA limit of £20,000. Such loans offer lenders tax-free income. Our offering is an Innovative Finance ISA (IFISA) that can hold the peer-to-peer (P2P) business loans that Money&Co. facilitates. For the purposes of this article, the terms ISA and IFISA are interchangeable.
So here’s our guide to the process:
The ISA allowance for 2020/21 is unchanged from last tax year at £20,000, allowing a married couple to put £40,000 into a tax-free environment. Over three years, an investment of this scale in two Money&Co. Innovative Finance ISAs would generate £8,400 of income completely free of tax. We’re assuming a 7 per cent return, net of charges and free of tax here.
Once you have made your initial commitment, you might then consider diversifying – buying a spread of loans. To do this, you can go into the “loans for sale” market. All loans bought in this market also qualify for IFISA tax benefits.
Risk: Security, Access, Yield
Do consider not just the return, but the security and the ease of access to your investment. We write regularly about these three key factors. Here’s one of several earlier articles on security, access and yield.