Cryptocurrency has brought about a whole new world of investing and building wealth, and already hundreds or even thousands of people have become millionaires after having success with bitcoin in the last decade. One young investor who has done just that is Joseph O’Connor. Here’s what Joseph had to say on finding a financial advisor that understands cryptocurrency investing.
- Look for someone with experience trading bitcoin themselves: even a little cursory research will teach you a good amount about the basics of buying and selling bitcoin, so do that before you reach out to anyone. It’s important you don’t simply go on trust alone, and don’t accept any financial advisor that seems to have a “how different can it be?” attitude. The cryptocurrency markets see some of the same trends as the stock market, but it also acts independently of it, so experience there doesn’t necessarily translate to experience with cryptocurrency. The best financial advisor will always be someone who has traded themselves.
- Ask any potential cryptocurrency financial advisor what security measures they’ll take for you: as the success of trading cryptocurrencies depends a lot on keeping your cryptocurrency safe – especially if you’re allowing your financial advisor to trade for you.
- Don’t assume your current advisor can simply add cryptocurrency onto your portfolio: in an ideal world, you would go to your financial advisor and ask them to add a cryptocurrency or two to your portfolio, and they would be able to advise you which ones you should invest in and how much. However, this just simply isn’t the case. At least not yet. So many financial advisors still don’t really understand cryptocurrencies because they just see them as too much of a gamble to invest in, so they haven’t bothered to learn. A very small percentage of financial advisors are actually allocating funds to cryptocurrencies, so it may be beneficial to seek out a separate advisor to manage that part of your portfolio.
- Ask them how they work to mitigate risk on your behalf: Cryptocurrency, like any investment, comes with risk. The reason why you choose to put your trust in a financial advisor is to alleviate some of the risk, so ask them how they plan to do so.
- Look for someone excited about the opportunities cryptocurrencies offer: Financial advisors that do understand crypto, will be able to tell you that, although it is a big gamble to invest in cryptocurrency directly, you can still take advantage of this growing digital asset. A good financial advisor will be optimistic and excited about the opportunities available for them and their clients in cryptocurrency, without being delusional, so look for a positive outlook. This could be through purchasing stock in a company that uses or creates blockchain technology, Bitcoin futures, or through crypto-focused hedge funds.
- If they also invest in stocks, they should be prepared to diversify their clients portfolio further, if conservatively at first: Besides the fact that crypto is just becoming more popular to investors, good financial advisors will be able to realise that crypto assets have the potential for high returns so are actually worth investing in, even if conservatively at first. They will also relish in the fact that cryptocurrencies provide them with a new asset class to offer to their clients, that is just so different from every other asset in their portfolio.
- They need to be looking toward the future: Every financial advisor needs to come to terms with the fact that the popularity of cryptocurrencies are increasing and if they don’t catch up with these modern, digital currencies and learn to properly understand them, they will be losing clients to those financial advisors who saw the potential of crypto long ago. If you are recommended a financial advisor and they don’t believe in cryptocurrency, move on. They are too set in the past to help you make gains in the future. (This will often mean choosing a younger advisor.)
Although many financial advisors will be playing catch up for some time, it is possible to find financial advisors that are knowledgeable on crypto and will be able to help you further understand cryptocurrencies and the best ways to invest. If you need help, Joseph O’Connor is ready to help and be the cryptocurrency advisor you need to see results. As a self-made millionaire from bitcoin himself, he’s well positioned to ensure your investments make positive gains too.