During an interview, Douglas Boneparth, a financial advisor and president of the company Bona Fide Wealth in New York has stated that the number of clients interested in investing in crypto, or selling their earned assets, has grown fivefold in only 4 years, portraying just how fast the industry had grown, and how much more it has yet to grow.
While there’s still a lot of room for education on the matter, Boneparth argues that the advisors themselves should do their reading on cryptocurrencies, regardless of whether they support it or not, purely for the sake of keeping up with trends.
Delancey Wealth Management founder Ivory Johnson’s clients may be a bit older than the millennial crowd gathering at Bona Fide Wealth, but every now and then a 65-year-old man will show up and ask about ripple, and if you, as an investor, cannot provide them with the information they’re looking for, then you’re not doing your job properly.
What this occasional visit from older people also indicates is that the older crowd is also getting more interested in crypto and through word of mouth, the industry is slowly creeping its way into every investor demographic.
Long-term investment or a quick cash method?
If you’re interested in buying some crypto, a financial advisor should be the right choice to help understand the ins and outs of the industry as well as offer different options to invest in, like bitcoin trusts and exchange-traded funds.
The same goes for those already owning crypto tokens, especially those with a lot of money in those assets because the volatility of a currency can help decide whether it should be kept as a long-term investment or used as a forward payment for a house, car, etc.
While the crypto market often suffers from massive spikes, followed by equivalently massive drops in value, it’s important to understand that this applies to any non-crypto stock, with even the stocks in the S&P 500 being a risky investment.
While it’s perfectly understandable to be skeptical around a currency that can drop as much as $10,000 in value in a day, it’s simply how the stock market works, and every investment comes with a certain percentage of risk.
Boneparth urges all investors to do their best in keeping up with modern trends, as being uneducated on a market as large as crypto does nothing but a disservice to your client, while also portraying you as a stubborn product of your time that refuses to make improvements.
Investment practices can grow easily and that success can pile on pretty fast, but if you don’t give crypto a fair chance, you will be destined to struggle to find success in the long run.
It’s important to note that cryptocurrency is an incredibly volatile space, and one should never risk money one can’t afford to lose in crypto investments. Investing in crypto assets should be done with caution and always through a licensed financial advisor.
In conclusion, cryptocurrencies are on the rise but it is still important to be informed about them and the risks associated with investing in them. Although cryptocurrencies present great potential for growth, investors must remember that it is best to invest through a licensed financial advisor to ensure their investments are secure. With proper education and understanding of the market, cryptocurrency can provide investors with an opportunity to create wealth with minimal risk.