Should you become a cryptocurrency financial advisor?

As digital assets get more and more hype, many wealth managers are wondering if they should expand their service offerings and become a cryptocurrency fiscal adviser. In this blog, I ’ ll spill the beans about the questions you should consider if this is a decision you have on the table .
For those of you who are new to my blog/podcast, my identify is Sara. I am a CFA® charterholder and I used to be a fiscal adviser. I have a weekly newsletter in which I talk about fiscal adviser star generation topics which is good described as “ playfulness and irreverent. ” So please subscribe !
Sara Grillo, CFA is a highly fun and slightly crazy marketing consultant based in NYC.

I am an irreverent and fun marketing consultant for financial advisors. Before we get started, I want to be clear that nothing in this podcast or web log can be interpreted as an investment recommendation of any type. I have no fiscal affiliation with any company mentioned in this podcast. Do your own inquiry before investing and do not interpret anything in this web log or podcast to be a recommendation specific to you or any clients of yours. besides, nothing in this blog or podcast can be interpreted as legal or conformity advice .

Are there financial advisors for cryptocurrency?

Naaaat in truth.

At the time of the write of this blog, October 2021, there are not many fiscal advisors for cryptocurrency. I know of one adviser, ( possibly two ) advising clients on investing in cryptocurrency .
Do fiscal advisors recommend Bitcoin ? I haven ’ triiodothyronine hear of this happening however. Why ?

  • Investing in crypto through an ETF has only recently become possible. Most financial advisors simply can not add cryptocurrency to their clients’ portfolios, because there is no way to do so through their current firm’s infrastructure. Many advisors work through wirehouses or brokerage platforms with very strict regulations, and right now digital assets are not included on these platforms.
  • Moreover, most advisors don’t really understand digital assets. Some financial advisors aren’t that smart, and even if they were smart, it’s a new and complicated type of investment that confuses even intelligent people.
  • Financial advisors by nature are more conservative investors than the general public. They don’t own any of it themselves, and in fact most of them want nothing to do with it because they view digital assets as too speculative.

Can you be a crypto advisor?

Ehem .
I already answered that above .
The more meaningful question is, “ should you be a crypto adviser ? ” I mean, in a “ theoretically in the future ” type of a thing .
The advantages from a fiscal adviser stigmatization position are huge. Most fiscal advisors are viewed as the same. They talk the same, dress the same, and sell the like products. Any differences are minuscule. Claiming territory as a cryptocurrency fiscal adviser before it becomes “ the cool thing ” to be is a big way to claim market share and set yourself aside at the lapp time .
BUT this is a adult province and it must not be taken lightly. If you are contemplating this, ask yourself these questions .
Why do I want to become a crypto fiscal advisor?
It should be for the correct cause. You should be doing this so that you can be an advocate, person who provides an autonomous judgment of whether or not this investment is prudent for person. It shouldn ’ t be because it ’ s a hot vogue and it ’ ll be exciting and you can get all this attention and make alot of money .
There is alot of stool advice about crypto given by fiscal professionals who don ’ t have the client ’ south best interests in mind. Alot of people get into crypto not truly knowing what is is they are investing in. The unharmed thing is nitwitted .
This is an opportunity to be a sensible advocate and to be the one who stands out by showing the truth and protecting people from bad decisions because there is a huge vulnerability here for retail investors who don ’ t have person to show them this truth .
Who do I want to do business with?
As cryptocurrency is regarded as a volatile and bad asset class, you are going to be hearing from a certain total of investors who are looking for the future hot vogue. They may not be looking for a farseeing term relationship with a cryptocurrency fiscal adviser .
You know those annoy clients who think they ’ re Wall Street Traders ? You know the adrenaline-pumping, CNBC-obsessed people who constantly want you to buy the future hot technical school stock ? You might be dealing with these types of folks. They tend to be very performance focused, and may hire you and fire you in a pulse. They may be jerks about it. Can you handle these shorter term relationships ? Or would you merely filter them out and refuse to take them on as clients ? figure out your position .
It ’ south hard to know who you ’ five hundred be advising about how to invest in crypto. At this point it ’ s not clear who will actually be necessitate advice for investing in cryptocurrency. This is such a democratic drift right now. It ’ s not clear who wants to talk about it and who will be the ones to actually want to own crypto in their portfolios .
Can I take on this risk?
Higher risk, higher potential advantage ( as you know ) .
If you are in the place where you can not assume indebtedness for managing inquisitive and volatile investments for your clients, don ’ deoxythymidine monophosphate do it. Do you have sufficient legal subscribe ? You have to be okay with the doubt and the likely liabilities that could arise. If you aren ’ metric ton, don ’ deoxythymidine monophosphate do it .
How knowledgeable am I REALLY about cryptocurrencies?
I know many advisors who think they understand digital assets ( when they actually don ’ t ). This is a precarious military position to be in. You ’ ll have to become a cryptocurrency adept if you aren ’ thymine already, and you ’ ll have to keep refreshing your cognition on a continual basis. If you aren ’ triiodothyronine up for the challenge, it ’ s not fair to your clients and you shouldn ’ thyroxine assume the character of being a cryptocurrency specialist .
superficial cognition is not all right here ; you ’ ll have to become closely companion with all the nooks and crannies, from hands to tax to how to trade it, etc .
Are you even investing in digital assets yourself ?

Do you have the emotional energy and discipline to become ( and remain ) a true adept ?
Be honest with yourself .
Does my platform support this (or are they likely to in the future?)
You ’ d have to ensure that your submission team permits you to be involved with managing crypto assets for clients, and what the nature of that involvement would be. It ’ s excessively complicated to get into and I don ’ metric ton know your situation, so the best thing would be to get full clearness from your platform ( and get it in writing ) to ensure you are complying with all regulations and platform guidelines .
How well-prepared am I to communicate with clients and handle their emotions if/when their positions go down?
It causes a capital deal of chaos in a fiscal adviser ’ randomness practice when the market goes down. Advisors often struggle to frame clients ’ expectations appropriately. It ’ second arduous to understand person ’ second true risk tolerance and educate them about traditional asset classes such as stocks and bonds. There are investment professionals who don ’ t even understand crypto. Are your communication skills that advanced ?
Volatility brings out the gloomy harvester in clients. When they see crimson marks on the screen, their emotions may take hold and overwhelm logic. Are you prepared to handle this ? How well do you do with extreme emotions yourself – do you have guts of sword ? Do you have emotional hold for yourself when the hard times hit ?
Emotions digression, it may require a great cope of energy barely to educate clients about cryptocurrency. It can get very technical. Are you an intellectually affected role person ? Do you mind having to explain the same thing over and over ? Do you have sufficient fiscal adviser selling and communication vehicles that you can use as resources to educate, re-educate, answer questions ?
Do I see a long term future in crypto, and can I hang in?
The upfront investment in becoming a cryptocurrency fiscal adviser may be big. But at the same time, it ’ s not amply adopted by the global and there are some very healthy people who deny that crypto has any real respect at all. If the whole thing were to falter tomorrow, would you ride it out ? Are you committed to hang in there through thick and sparse, whether it be wide swings in price, regulative changes, tax changes, etc. Or are you just dipping your toe in the water ? What ’ s the disengagement plan if this doesn ’ thymine work out ?
This list is by no means complete, as every fiscal adviser ’ sulfur practice is different. These are just some questions to get you started .

Sara’s upshot on becoming a cryptocurrency financial advisor

What ’ five hundred ya think ? Was this helpful ?
If yes…
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Thanks for reading. I hope you ’ ll at least join my weekly newsletter about fiscal adviser lead genesis .
See you in the next one !
-Sara G

Disclaimers

Grillo Investment Management, LLC does not guarantee any particular degree of performance, the success of any strategy that Grillo Investment Management, LLC may use or note in any of its content, or the success of any course of study it may mention in any of its content.

Grillo Investment Management, LLC will strive to maintain stream information however it may become out of date. Grillo Investment Management, LLC is under no duty to advise users of subsequent changes to statements or data contained herein. This information is general in nature ; for specific advice applicable to your current situation please contact a adviser or adviser .
I want to be clear that nothing in this podcast or blog can be interpreted as an investment recommendation of any type. I have no fiscal affiliation with HeightZero or any early company mentioned in this podcast or blog. Do your own research before investing and do not interpret anything in this web log or podcast to be a recommendation specific to you, your situation, or any clients of yours .
besides, nothing in this podcast or blog can be interpreted as legal or complaisance advice. For advise on such matters, contact a legal or complaisance adviser .

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Category : Finance

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