In this review, we’ll look at the Slovak investment platform Fumbi, which, according to its own website, lets you invest in cryptocurrencies in a smart and safe way. Find out what Fumbi Network has to offer, how much it costs, and how investors themselves rate this service!
Fumbi review in a nutshell
Fumbi is a Slovakian investment platform that was established in 2019. Fumbi also works in the Czech Republic and Posl right now, and it has almost 100,000 registered users.
Want to save 10% on your FUMBI license fee? If so, use the discount codefumbiinvest10 when you sign up.
You can put your money into a portfolio of more than 20 different cryptocurrencies through the Fumbi platform. The portfolio is changed automatically every day to match as closely as possible how the cryptocurrency market is doing.
Fumbi has three other products besides the cryptocurrency portfolio. You can build your own portfolio (for individuals or businesses), get a portfolio with gold and Bitcoin, or store cryptocurrencies.
Investing takes place through a web application that is really simple and intuitive. You can use a bank transfer to make deposits and withdrawals, and you can open an investment account in either crowns or euros.
The money you put in can be easily moved to an investment portfolio without you having to do anything else. Fumbi will turn the money into cryptocurrency and make sure it is stored safely. Then, you can get your money back at any time.
Fumbi’s weakness is that it has high fees, which can be as much as 8%. On the other hand, there is full support for the Czech language, which is a plus. More will be said in the next part of this review.
Advantages:
- Easy cryptocurrency investment
- Complete support of the Czech language
- Deposits and withdrawals in crowns
Disadvantages:
- High fees
- A mobile app is missing
Basic Information
Fumbi, operated by FUMBI NETWORK jsa in Bratislava and founded in 2019, is a Czech investment platform that allows for investment in cryptocurrencies, available in CZK and EUR account currencies with a minimal investment of 1,400 CZK and selection limits. The expected return is not stated, and payment methods include bank transfers, with additional charges and discounted fees available for larger investments. Platform charges up to 2.99% as a platform fee and up to 5.99% as a performance fee.
Fumbi Network offer
Fumbi is an investment platform based in Slovakia that focuses on digital currencies. The platform makes it easy to invest in virtual currencies and also keeps them safe.
Fumbi sells 5 things:
- Fumbi Custody is a service that lets you store and protect your digital currencies. To use Fumbi Savings, you have to put down at least 300,000 crowns.
- Fumbi Custom Choice: With this product, you can choose which cryptocurrencies you want to invest in. But there is a big problem: there are only six types of cryptocurrency: BTC, ETH, ADA, DOT, LUNA, and AVAX.
- Fumbi Business is a product that is similar to Own Choice, but it is made for businesses.
- Fumbi Bitcoin and Gold is an investment portfolio with an equal amount of gold and Bitcoin. Fumbi does not buy real gold, though. Instead, it only buys the stablecoin PAX Gold (PAXG), which is linked to gold.
- Fumbi Index Portfolio: This is a list of cryptocurrencies that Fumbi has put together as an investment portfolio. When you buy this portfolio, you buy dozens of well-known cryptocurrencies.
The first four things we bought didn’t really impress us. Any exchange or exchange, other than Fumbi, will let you buy the cryptocurrencies you want and store them.
Fumbi’s main product, the Index Portfolio, is for people who have never invested before or only invest occasionally. It promises a high-quality portfolio of 24 cryptocurrencies, regular updates to the portfolio, and a safe way to invest. And without having to work or worry.
Fumbi says this portfolio is great but is it really as good as he says?
Fumbi Index Portfolio
The official Fumbi.network website says (March 2022) that the portfolio is made up of the following:
Cryptocurrency Symbol
- Take a piece of the pie
- Bitcoin BTC 57.99%
- Ethereum ETH 25.40%
- Terra MOON
- 2.48% sCardano ADA 2.40% sSolana SALT 2.32% sOther – 9.41%
As you can see, each coin in the portfolio has a different weight. Market capitalization determines the weight, so cryptocurrencies with a high market capitalization have a bigger share in the portfolio. Because of this, the portfolio is not spread out evenly, and Bitcoin alone makes up more than half of the whole portfolio.
About 85% of the portfolio is made up of Bitcoin and Ethereum. The last 15% is made up of 22 different cryptocurrencies.
The same strategy is used to build a portfolio for popular index funds that try to copy the performance of stock market indices like the DAX, SP500, or NASDAQ-100. The Platform portfolio tries to copy the performance of the cryptocurrency market, while index ETFs focus on stocks.
RULES FOR BUILDING A PORTFOLIO
Each coin in the Index portfolio has to meet 5 requirements:
- CoinMarketCap says that the value of the cryptocurrency market is in the top 50.
- It is possible to store cryptocurrency in a safe way.
- Cryptocurrency has nothing to do with MLM, is not unethical, and is easy to use.
- The value of cryptocurrency is not tied to the value of fiat money.
- The cryptocurrency is traded on the biggest cryptocurrency exchanges, and on average, more than €5 million is traded every day.
There are payment cryptocurrencies (like Bitcoin, Litecoin, and Stellar) in the portfolio, as well as developer blockchain tokens (like Ethereum, Cardano, and Algoran) and decentralized DeFi finance tokens (Terra, Avalanche, Uniswap…).
PORTFOLIO REBALANCING
The investment portfolio is always changing so that it stays up-to-date and can respond to changes in the market. The update is made possible by a special algorithm, and the changes are made every day.
The algorithm that makes sure rebalancing happens is based on a simple idea: it takes out of the portfolio the cryptocurrencies whose value goes down and buys back the ones whose value goes up.
How does it all work?
- First, you open an account for investing and put money in it.
- You can move the money you put into the Fumbi Index portfolio with just a few clicks.
- Fumbi will use your money to buy cryptocurrencies based on the rules above and keep them safe.
- You can see how your investments are doing (whether they are making money or losing money) and how they are put together in your account.
- If you want to get your money out of Fumbi, the cryptocurrencies will be turned back into crowns and sent to your bank account. But you can only cancel after the minimum time has passed, which is 30 days from the date the contract was signed.
Ledger Vault takes care of the virtual wallets where purchased cryptocurrencies are kept. This company manages cryptocurrencies and is one of the top companies in its field.
You can also save to cryptocurrencies with your Fumbi account. Set up a standing order and send a small amount every few weeks (per month, for example). By investing regularly, you also reduce the risk of bad timing, which is the biggest worry with one-time investments.
Fees at Platform
Fumbi will make it easy to invest in cryptocurrencies, but it won’t be free. Even if you don’t make any money, you still have to pay the platform’s high fees.
Here’s a short example to give you a better idea of how much the fees are.
Let’s say you put CZK 10,000 in the Index portfolio. First, you pay 1.49% of the deposit to turn it into cryptocurrency. When you use the portfolio, you get an extra 3% per year. When you withdraw, the performance fee takes 5.99% of your profit, and converting the crypto-currencies back to crowns costs another 1.49%.
How much you have to pay in fees depends on the product you choose and how much you invest. There is a simple rule: the more money you deposit, the less you pay in fees.
OVERVIEW OF INDIVIDUAL FEES
- Custodial Fee: The fee you pay every year to store your cryptocurrency. The custody fee is between 0.89 and 1.49 percent.
- Exchange Fee: A one-time fee that you have to pay when you buy or sell cryptocurrencies. It’s basically a fee for changing real money into virtual coins. The fee is 1.49 percent.
- Fee for using the Platform Index portfolio. This is a yearly fee. This fee covers the costs of rebalancing the portfolio every year and keeping the cryptocurrency safe.
- Profit share: A one-time fee that is paid when money is taken out of an investment account. This fee is for the Portfolio Index service. The fee is between 2.99% and 5.99% of the money made. If you lose, you don’t have to pay the fee.
Account registration and funding
Fumbi products are only available to clients who have signed up, so the first step is to open an investment account. But making an account is easy and only takes a few minutes. You can even do it in your living room.
INSTRUCTIONS: HOW TO REGISTER WITH PLATFORM?
The first step is to fill out a short form with your email address and a password of your choice. You will get an email with a confirmation link, which will take you to the next step of the registration process.
Want to save 10% on your FUMBI license fee? If so, use the discount codefumbiinvest10 when you sign up.
Here are 3 short forms that you fill out with your name, address, and other information from your ID card, as well as some basic information about your income. Now that you’ve signed up, you can start investing.
When you invest more than 10,000 EUR, Fumbi will ask you to prove who you are. During the verification process, you’ll need to give more information and copies of two documents. The first document, like an ID card or passport, is used to prove who you are. The second document is used to prove where you live (utility invoice, back of ID card, etc.).
Why do you need to show proof of who you are? European directives and the Anti-Money Laundering Act both say that clients must be checked. So, you will never miss a verification on any platform for investing.
DEPOSITS AND WITHDRAWALS
The least you can invest is 50 euros, which is equal to 1,400 crowns.
Fumbi says that you can pay the deposit with a bank transfer, PayPal, or a credit card. During our tests, however, we could only use bank transfers.
For a partial withdrawal, you need to have at least EUR 10,000. If you have less money in your account, you must take out the whole amount.
Fumbi doesn’t let you deposit or withdraw in cryptocurrencies (only with the Escrow service).
Is it worth investing through Fumbi?
We think the main things that make the Fumbi project more valuable are the security of cryptocurrencies and the way it manages its portfolio. Unfortunately, you have to pay a lot of money to get these benefits.
Fumbi gets a portfolio fee, so even if the cryptocurrency market goes down, the platform operator will still make money. Since the investors take on all of the risk, we think they should also get all of the reward. But Fumbi also wants a cut of the profit (up to 5.99%) in addition to the license fee.
Investors pay a lot to use the service, take a big risk, and still have to share the profits if the business does well.
So the question is whether or not investors really need this service. Shouldn’t you buy each cryptocurrency on its own?
ALTERNATIVES
It takes more work to buy cryptocurrencies through online exchanges and exchange offices, but it is much cheaper. You only pay the exchange fee. You don’t have to pay a license or performance fee. For example, on the Binance exchange, you don’t pay even 0.5% to buy Bitcoin, so the savings are very clear.
But there are also some bad things about investing on your own. You have to put together your own portfolio, and you shouldn’t forget how safe cryptocurrencies are. You can leave the coins you bought in the exchange account, but this isn’t the safest thing to do.
There are also competing platforms Indigo, Fondee, and the well-known Portu. These platforms work like Fumbi, but instead of cryptocurrencies, you can invest in stock and bond funds through them. Even though stocks and bonds have less growth potential than cryptocurrencies, they are also less risky and more stable.
Unlike Fumbi, the platforms listed above only charge one fee, which is a 1% annual management fee. So you can see why it’s expensive for us to do business with Fumbi.
Experience with Fumbi
The Fumbi project began in Slovakia in 2019, but it quickly spread to the Czech Republic and Poland. Juraj Forgács started the project. He is also the CEO of the company that runs the project, FUMBI NETWORK js a.
There are some false things being said about the Fumbi project, and we’d like to set the record straight:
- Direct ownership of cryptocurrencies: Fumbi says that investors own cryptocurrencies directly. But in reality, only Fumbi has access to cryptocurrencies. If investors had their own crypto-wallet with their own private key, we could talk about direct ownership. They don’t have it, though.
- Having 28 cryptocurrencies is a good way to spread your risk. When it comes to cryptocurrencies, diversification doesn’t work very well because the values of different coins are strongly linked to each other and the trend is mostly set by Bitcoin. Fumbi’s portfolio is made up almost entirely of just two cryptocurrencies: BTC and ETH. This is no accident.
- Fumbi presents itself as a safe and easy way to invest in cryptocurrencies. Even though we agree with the simplicity, we don’t think it’s true that investing in cryptocurrencies is safe. Since cryptocurrencies are high-risk investments, you shouldn’t use phrases like “safe investment” or “minimal risk” to promote them.
Fumbi has mostly good reviews and discussions on the internet. But you will also hear criticism, which is mostly about the high fees.
WHAT TO WATCH OUT FOR?
- Fumbi’s portfolio of investments is mostly made up of Bitcoin and Ethereum.
- The least amount you can withdraw in part is 1400 CZK/50 EUR.
- If you want to invest more than EUR 10,000, you have to prove who you are.
- The guarantee fund does not protect investments in case the company goes bankrupt.
Fumbi review summary
Over the past few years, the Fumbi portfolio did well enough. But this isn’t because of Fumbi’s investment strategy; it’s because of how things are going in the cryptocurrency market.
During that time, you would have done about the same if you only invested in Bitcoin and Ethereum. And you’d save money on fees. So we have to ask ourselves:
WHY INVEST THROUGH FUMBI?
We would come up with one good point.
The cryptocurrency market is led by Bitcoin and Ethereum, but this may not be the case forever. You don’t have to worry about missing out on powerful new players when you use Fumbi. The Fumbi algorithm keeps track of the top 50 cryptocurrencies and chooses the best titles, so it never misses a good chance.
Fumbi is for you if you want an easy way to invest in the cryptocurrency market without a lot of trouble. But comfort costs extra, and this is twice as true with Fumbi.
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