Ask These Crypto-Related Questions To Your Financial Advisor

One good opening question to the advisor could be to ask their thoughts on whether cryptocurrencies are an investment vehicle in their own right. The response will give a good indication of how the rest of the conversation will go. 

Based on the answer to the first question, the conversation could end abruptly or, potentially, be the seed for a good relationship. If the signs are positive, you will want to ask additional questions. Here are a few to consider.

A good follow-up question is whether the advisor has invested in crypto personally. 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? 

What crypto credentials have you earned?

Two credentials to look for in an advisor are the Certified Digital Asset Advisor (CDAA) and Certificate in Blockchain and Digital Assets (CBDA).

If you’re one of a few crypto clients with a seasoned financial advisor, many of the detailed, technical questions you have, are likely to have already been asked.

Are you helping any other clients with their crypto investments?

Should I invest directly in cryptocurrencies or use investment vehicles like an ETF or IRA for exposure? 

And a financial advisor who knows the ins and outs of cryptocurrencies can also help ensure you don’t fall victim to crypto scams.

What are the tax implications of holding cryptocurrency directly?

Working with a financial advisor has the advantage of providing you with the benefits and drawbacks of each investment option and how they will affect your taxes.

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