Advice You’ve Never Had to Consider Before

Read the Full Article by Adam Blumberg here 9/16/21

When it comes to crypto, you’ll need to be knowledgeable about new, complex topics to be a more useful and valuable advisor to clients.

This article runs through some of the complex subjects the everyday cryptocurrency has to consider, the things that most financial advisors never had to put much thought into.

Every Crypto Trader or advisor should consider things such as:

Custody:

• Bitcoin was created partially to allow people to preserve their own wealth, without a middleman diminishing profits.

• This tends to appeal people who like to take a hands on approach with their personal finances.

Hedging against inflation:

• With the value of the US dollar diminishing at an accelerated rate, it’s good to understand where the public will go to protect their wealth.

Regulatory clarity:

• Its tough to predict what the SEC will do with cryptocurrency, considering how big of an impact blockchain can have on the world.

• New laws or regulations could really suck the wind out of the market at time.

FUD (FEAR uncertainty doubt)

• Following the point made earlier, lack of clarity will cause doubt in the public.

• It is not easy to have a positive attitude every single day as a trader, things get tough when there is a dark cloud of uncertainty hanging over the market.

• As a trader you have to be able to see through the FUD, do your own research and invest in projects that you believe in, not things a lot of people on Reddit are speaking about.

Volatility:

• Since cryptocurrency is still in it’s infancy and a much smaller pool of investors than more traditional markets like the NYSE you have to account for a lot more movement in the market.

• 10% swings up or down for an average crypto trader is a regular Tuesday at the office, however that same type frequent of movement in the NYSE will have a Stock trader pulling their hair out.