What is Asset Management?
Let's find out Asset Management meaning, definition in crypto, what is Asset Management, and all other detailed facts.
Asset Management is a type of system that assists in managing both physical and non-physical assets. For instance, stocks, bonds, derivatives, real estate, or cryptocurrencies.
Many fields have their own unique processes for asset management. For instance, IT Asset Management focuses on managing hardware and software while Infrastructure Asset Management refers to the management of infrastructure available to the general public.
Asset Management is usually done in one of two ways: active management and passive management. The former refers to active trading while the latter avoids unnecessary risks and exposure.
Let’s take a deeper look at Financial Asset Management which targets investments.
Asset Management is usually done by an asset manager whose main responsibility is to manage financial assets in a cost-efficient manner. This means that at the very least, an asset manager will minimize the financial risk associated with the asset. In the best-case scenario, an asset manager will generate profit. To do this, they must have a solid understanding of market activities.
The role of an asset manager can be filled by a specialist or a specialized company. One of the main benefits of hiring a company for this role is that they usually have handled many cases and have extensive knowledge and experience in the field. Meaning they have a higher chance of maximizing the return.
Who hires asset managers? Individuals, businesses, pension funds, and even the government.
Many fields have their own unique processes for asset management. For instance, IT Asset Management focuses on managing hardware and software while Infrastructure Asset Management refers to the management of infrastructure available to the general public.<\/p>\n<p>Asset Management is usually done in one of two ways: <a href=https://www.bitdegree.org/"//crypto//learn//crypto-terms//what-is-active-management/">active management<\/strong><\/a> and <strong>passive management<\/strong>. The former refers to active trading while the latter avoids unnecessary risks and exposure. <\/p>\n<p>Let’s take a deeper look at Financial Asset Management which targets investments.<\/p>\n<p><strong>Asset Management is usually done by an asset manager whose main responsibility is to manage financial assets in a cost-efficient manner<\/strong>. This means that at the very least, an asset manager will <strong>minimize the financial risk<\/strong> associated with the asset. In the best-case scenario, an asset manager will <strong>generate profit<\/strong>. To do this, they must have a solid understanding of market activities.<\/p>\n<p>The role of an asset manager can be filled by a <strong>specialist<\/strong> or a <strong>specialized<\/strong> <strong>company<\/strong>. One of the main benefits of hiring a company for this role is that they usually have handled many cases and have extensive knowledge and experience in the field. Meaning they have a higher chance of maximizing the return. <\/p>\n<p><strong>Who hires asset managers?<\/strong> Individuals, businesses, pension funds, and even the government.<\/p>","definition":"a method for managing assets.","status":"published","meta_title":"What is Asset Management? Definition & Meaning | Crypto Wiki","meta_description":"Asset Management meaning: Asset Management - a method for managing assets.","meta_keywords":null,"author":{"id":1,"user_id":1,"created_at":"2023-05-03T14:30:55.000000Z","updated_at":"2023-05-11T07:18:20.000000Z","title":"Editor-In-Chief","slug":"aaron-s-editor-in-chief","description":"<p>Having completed a Master’s degree on Economics, Politics & Culture for the East Asia region, Aaron has written scientific papers with a comparative analysis of the differences between US’ Western and Japan’s Collective forms of capitalism, 1945-2020.<\/p>\n<p>With close to a decade of experience in the FinTech industry, Aaron understands all of the biggest issues and struggles that crypto enthusiasts face. He’s a passionate analyst who is concerned with data-driven and fact-based content, as well as that which speaks to both Web3 natives and industry newcomers.<\/p>\n<p>Aaron is the go-to person for everything and anything related to digital currencies. With a huge passion for blockchain & Web3 education, Aaron strives to transform the space as we know it, and make it more approachable to complete beginners.<\/p>\n<p>Aaron has been quoted by multiple established outlets, and is a published author himself. Even during his free time, he enjoys researching the market trends, and looking for the next supernova.<\/p>","user":{"id":1,"first_name":"Aaron","last_name":"S.","email":"aaron@bitdegree.org","email_sanitized":"aaron@bitdegree.org","email_verified_at":"2023-12-01T09:40:20.000000Z","must_verify_email":false,"is_registered_with_wallet":false,"status":"active","country":"LT","last_connected_ip":"88.119.132.125","image_id":2641,"referral_token":"05TMu2NysXOCn525","referred_by":null,"created_at":"2023-05-03T14:30:55.000000Z","updated_at":"2024-01-09T15:22:21.000000Z","full_name":"Aaron S."}}}" :chapter-list="[{"id":1,"title":"Blockchain","slug":"blockchain","updated":null,"chapter":"crypto\/assets\/crypto-book\/chapters\/learn-blockchain.jpg","chapter_simple":"crypto\/assets\/crypto-book\/chapters-simple\/blockchain-101.jpg","rating":100,"sections":[{"chapter_id":1,"order":1,"slug":"what-is-blockchain","title":"What is the Blockchain?","status":"published","modified_content":null},{"chapter_id":1,"order":2,"slug":"decentralized-blockchain","title":"Anonymous & Decentralized Blockchains: The Cornerstone of Crypto","status":"published","modified_content":null},{"chapter_id":1,"order":3,"slug":"blockchain-transaction","title":"What is a Blockchain Transaction in Crypto?","status":"published","modified_content":null},{"chapter_id":1,"order":4,"slug":"crypto-fees","title":"The Different Types of Crypto Fees Explained","status":"published","modified_content":null},{"chapter_id":1,"order":5,"slug":"what-is-bridging-in-crypto","title":"The Key Notion Behind the Concept of Bridging in Crypto","status":"published","modified_content":null},{"chapter_id":1,"order":6,"slug":"types-of-blockchains","title":"Different Types of Blockchains: What to Look Out For?","status":"published","modified_content":null}]},{"id":2,"title":"Cryptocurrencies","slug":"cryptocurrencies","updated":null,"chapter":"crypto\/assets\/crypto-book\/chapters\/learn-cryptocurrencies.jpg","chapter_simple":"crypto\/assets\/crypto-book\/chapters-simple\/cryptocurrencies-101.jpg","rating":100,"sections":[{"chapter_id":2,"order":1,"slug":"what-is-a-cryptocurrency","title":"What is a Cryptocurrency?","status":"published","modified_content":null},{"chapter_id":2,"order":2,"slug":"how-does-cryptocurrency-work","title":"How Does Cryptocurrency Work?","status":"published","modified_content":null},{"chapter_id":2,"order":3,"slug":"is-cryptocurrency-a-good-investment","title":"Is Cryptocurrency a Good Investment? 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