![]() ![]() They also have continuing education requirements. Certified Digital Asset AdvisorsĬertified Digital Asset Advisors have successfully completed 12 hours of coursework in bitcoin, ether, blockchain, crypto wallets and exchanges, and crypto regulation and compliance. Two designations to know are the Certified Digital Asset Advisor (CDAA) and the Certificate in Blockchain and Digital Assets (CBDA). Leaning on industry designations is one of the best ways to locate wealth managers who are pro-crypto. ![]() Your second option is to find a new advisor who has crypto experience. Find these pros by searching for cryptocurrency consultants, crypto advisors, crypto professionals, or crypto experts. You might temporarily retain a consultant who can educate you about crypto and crypto investing. If your current advisor won't help you with crypto, you have two options. You don't want to work with someone who suggests flying under the radar with your crypto trading activity. Your advisor should recommend you keep careful records of your transactions. When you record a gain, you'll pay the short-term or long-term gains tax rate, depending on how long you owned the asset. How are crypto transactions taxed? In the U.S., your crypto transactions are taxed like stocks.And, if the advisor has the right tools, it's best if he or she can view and manage your crypto assets directly. You'd also want an advisor who's comfortable making buy, sell, and hold recommendations on crypto assets. You should expect a pro-crypto advisor to educate you on your investing options, recommend a target exposure for crypto holdings, and explain how that target exposure affects your current exposures. Describe the services you can offer with respect to crypto investing.They can greatly streamline the advisement process. These are mostly geared for independent advisors who work in crypto. They're called turnkey digital asset management platforms or TDAMPs. Can you manage my crypto assets? There are tools like Onramp Invest and HeightZero that allow advisors to manage your crypto assets.Unless your advisor knows you very well, he or she will want to learn more about your objectives and why you're interested in crypto investing. What's the best approach for crypto investing? This question should prompt a discussion rather than a single answer.What level of crypto exposure would you recommend? Expect a single-digit percentage here, unless you prefer aggressive, high-risk investing.Can you explain how cryptocurrencies work? An advisor with crypto expertise should provide an informative and articulate response. ![]() Do you personally own digital currencies or crypto assets? Why or why not?.Others predict bitcoin will skyrocket in value over the next five to 10 years. Some financial professionals liken cryptocurrency trading to gambling. How do you feel about crypto? There is a wide range of possible answers here.Then get more specific if your advisor doesn't shut down the conversation. Start with broad questions to test the waters. gettyĪsking questions is the best way to test your financial advisor's willingness to oversee your crypto assets. Questions to Ask Your Current Financial Advisor About Cryptoįind out whether your advisor personally invests in cryptocurrencies, and why or why not. Your financial advisor likely doesn't want to earn less, or even the same, for adding crypto oversight to your service set. And commission-based advisors simply won't earn anything on those trades. If your advisor charges an annual percentage fee applied to your account balance, that annual compensation would go down when you withdraw funds to buy crypto. In that scenario, your advisor either makes no money or less money for sharing crypto advice. And any resulting crypto assets would live in an account that's outside the advisor's purview. If your advisor recommends holding digital currencies directly, you may have to execute the trades yourself. The big brokerages don't (yet) support cryptocurrency trading. Neither extreme is ideal.Īnother issue is one of advisor compensation. Clients will either be elated or angry most of the time. After all, recommending a highly volatile asset can create challenging situations for advisors. Or, perhaps your advisor doesn't like crypto's risk profile. He or she may not have the expertise or the bandwidth to stay current on crypto's constantly changing landscape. Sadly, your advisor might avoid recommending direct or indirect exposure to crypto for a few reasons.
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