“For me since I like crypto but don’t have the training behind me and being held to a fiduciary standard, I will talk about the basics of crypto with the clients, how it can play an overall role in their portfolio, and the associated risks. However, for advisors, the qualifications aren’t obligatory, and as Nathan Mueller says, The qualifications give investors assurance that the advisor has a high level of knowledge of cryptocurrency and can speak with authority. These relatively new qualifications cover several of the critical aspects of the asset class, including blockchain technology and decentralized finance. Two credentials to look for in an advisor are the Certified Digital Asset Advisor (CDAA) and Certificate in Blockchain and Digital Assets (CBDA). Finding an advisor who is walking the talk with their own money on the line could be a way of validating whether they believe what they’re saying. An advisor interested in the crypto space is one thing, but it could be a red flag if they’re unwilling to put their own money at risk. Do you have any cryptocurrency holdings in your portfolio?Ī good follow-up question is whether the advisor has invested in crypto personally. If the signs are positive, you will want to ask additional questions. The response will give a good indication of how the rest of the conversation will go.īased on the answer to the first question you ask your financial advisor about cryptocurrencies, the conversation could end abruptly or, potentially, be the seed for a good relationship. One good opening question to the advisor could be to ask their thoughts on whether cryptocurrencies are an investment vehicle in their own right. Ryan: What is your view on cryptocurrencies? Do you think cryptocurrencies should be a part of my portfolio? If so, what percentage? If not, why do you think I shouldn’t invest in cryptocurrencies? Do you invest in cryptocurrencies yourself? If so, which one(s)? How do you decide which projects to invest in? How long have you been following this space? How do you keep abreast of what’s happening in the cryptosphere? Get to Know Ryan:Īre You Wondering What Crypto Investing Questions to Ask a Financial Advisor? Q: What questions should crypto investors ask a financial advisor? Cryptocurrencies can have very wide price swings compared to publicly traded stocks, so brace yourself for volatility. Start slowly (don’t invest more than you’re comfortable losing) and buy small amounts over time (the concept of dollar cost averaging). Ryan: Do your research and due diligence on cryptocurrencies before jumping in: learn the basics of blockchain and cryptocurrencies. Q: What do you suggest investors consider if they are brand new to investing in cryptocurrencies? We asked Houston-based financial advisor and cryptocurrency specialist Ryan Firth to answer three questions we often hear from cryptocurrency investors. – Financial Advisors Specializing in Cryptocurrency – Three Questions with Ryan Firth You’ll also find an increasing number of financial advisors pursuing specialized education to demonstrate their knowledge of cryptocurrencies, for example, the Certificate in Blockchain and Digital Assets (CBDA) and Certified Digital Asset Advisor (CDAA) designation. This means you can choose to hire a financial advisor who lives hundreds of miles away if you decide their knowledge about cryptocurrencies could help you achieve better investing outcomes. But it may be more difficult to find a financial advisor comfortable working with people who invest in cryptocurrencies.įortunately, many financial advisors offer virtual services so you can meet online no matter where you (or they) live. You’ll likely find dozens of financial advisors in your community well-suited to help you reach your money goals with a personalized plan. Do you own Bitcoin, Ethereum, or NFTs? A financial advisor specializing in cryptocurrencies and non-fungible tokens (NFTs) can help you make smarter money moves with these digital assets.
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