Where not to go for crypto advice?
Over the past few years, cryptocurrency has become an increasingly popular option for investing. The crypto market is known for its volatility, but has caught the attention of a large number of investors who are looking for new ways to seek profit in their portfolios. But in the midst of such a new and unregulated financial market, investors are once again looking for guidance on crypto issues, such as how to choose a coin to buy or how to account for taxes on crypto trading profits. Find out which sources to avoid when seeking crypto advice and how to find an advisor who can help.
Important takeaways
- Many individuals and organizations are looking at crypto-assets like Bitcoin as an investment vehicle and are seeking advice on investing in this market.
- It is not advisable to follow financial advice regarding crypto investments from family, friends or people unknown to you on the internet.
- If there is hype around a particular crypto coin, don’t invest in it just because of the fear of missing out (FOMO).
- To build and manage a solid crypto investment portfolio, use the services of a professional crypto financial advisor.
- You can educate yourself on blockchain topics by learning from trusted educational platforms and keeping up to date with news in the crypto industry.
What are the worst places to seek crypto advice?
Family and friends
Unless your family member or friend is a crypto advisor, accountant or long-time crypto expert, taking advice from close friends and relatives can be costly. Relying on the experience of your close friends when dealing with financial matters may not be the best choice. Instead, you want to make sure that your financial decisions are made wisely after careful consideration with an expert on the subject.
Online community
Different forums like Quora and Reddit can be good for getting different perspectives from people on a topic. However, when it comes to asking for financial advice, it’s not the best place to get advice on smart money moves.
You can learn from the experiences of others, but trying to replicate someone’s success by doing the same moves they did could turn out to be your biggest mistake. Circumstances and conditions change, and this affects the results. So consult with a certified crypto advisor who can guide you in making the right decisions on your crypto journey.
People unknown to you
If you are a non-fungible token (NFT) collector, creator, or crypto enthusiast, you should be familiar with the platforms used to host crypto communities. Incidents like an unknown person diving in to send you a message are commonly experienced on all social media platforms.
Such people may present a seemingly promising investment opportunity worth buying into. But beware of such proposals, as they are mostly scams. As a security tip, if possible, you can adjust your platform settings so that they do not allow any random unknown person to send you messages.
Where to get crypto advice
Certified Crypto Advisors
A financial advisor is a broad term that covers a variety of financial professionals, including those who specialize in working with cryptocurrencies. Crypto financial advisors can help you create and manage an investment portfolio. They provide financial advice to crypto investors and crypto-based startups.
These experts should hold a Certificate in Blockchain and Digital Assets (CBDA) or Certified Digital Asset Advisor (CDAA) credentials. However, financial advisors such as Chartered Financial Consultants (ChFCs) or Certified Public Accountants (CPAs) with deep knowledge of crypto may also be qualified to work with crypto investors.
Crypto experts and influencers
Many crypto experts have a wealth of knowledge in the blockchain industry, including blockchain developers, crypto influencers, thought leaders and crypto investors.
Here are five people to follow to gain sharp insight into cryptocurrency. They share information about innovations in different blockchains and highlight cryptocurrencies they are heavily invested in. Remember that they do not provide financial advice and you should do your own research before making any investment decisions.
Vitalik Buterin
Vitalik Buterin is a Canadian programmer who co-founded the Ethereum blockchain and Bitcoin Magazine. Vitalik is an active voice on social media, especially on Twitter, where he has amassed over 4 million followers. He shares updates on Ethereum, relevant blockchain information and personal insights on crypto topics. He also has a blog where he writes about a wide range of topics, from crypto to productivity and lifestyle.
Roger Ver
Roger Ver is the CEO of Bitcoin.com and a popular crypto influencer on Twitter. Popularly known as “Bitcoin Jesus,” Roger Ver is an early adopter of Bitcoin and a leader in the cryptocurrency industry. He tweets his views on Bitcoin and regulations related to crypto. He has since built an audience of more than 750,000 on Twitter.
Andreas M. Antonopoulos
Andreas M. Antonopoulos is a Bitcoin lawyer, technology entrepreneur, author and popular podcaster. He hosts the podcast “Speaking of Bitcoin”, where he discusses how Bitcoin and cryptocurrency in general are being adopted globally. He has a blockchain education platform and tweets on topics related to crypto to more than 746,000 followers.
Ivan at Tech
Ivan Liljegvist, the founder of Moralis Web 3 Academy, is a popular crypto developer, entrepreneur and influencer. He shares insights about the future of crypto and aims to empower others through Web 3 – the name of the decentralized, blockchain-based web. He has one Twitter account and YouTube channel where he shares insights and news about Web 3 and crypto.
Elizabeth Stark
Elizabeth Stark is the co-founder and CEO of Lightning Labs, a company that developed the Lightning Network, which provides more user-friendly features for the Bitcoin blockchain. She is a blockchain entrepreneur and a big proponent of Bitcoin. She shares tweets about bitcoin’s use as a peer-to-peer exchange coin and several other crypto topics.
Educational platforms
If you are new to cryptocurrency, you will benefit from the learning resources many educational platforms offer. You can explore different topics to help you understand how crypto works and how to get started investing in it. Here are three reliable educational platforms to learn crypto.
Binance is a cryptocurrency exchange that provides a platform for users to buy and sell cryptocurrencies. The platform also offers educational content on blockchain, cryptocurrencies, security and NFTs through its academy. You’ll find how-tos, trading guides, a comprehensive glossary and various articles.
Coinbase Learn comes from one of the most used crypto exchanges globally. In addition to providing financial services for crypto transactions, Coinbase offers educational content to help educate crypto users on how to navigate the crypto space. On this page you will find beginner’s guides, tutorials and market updates.
Investopedia (this financial content producer) has comprehensive cryptocurrency coverage, including expert reviews of popular cryptocurrencies and exchanges. You’ll find content such as beginner’s guides, a comprehensive collection of terms used in crypto, and news on the latest in the crypto market, including financial news, definitions and articles.
Why crypto advice is beneficial
It is not difficult to find a cryptocentric community on major social media platforms, with many sharing advice on various topics. You can learn from other people’s experiences, but blindly following advice from a public space like social media can cost you a fortune. Here are some reasons to seek crypto advice from the right sources.
Avoid fraud
As quickly as crypto innovations are created, fraudsters find new methods to defraud unsuspecting individuals. As of September 2022, there are more than 9,400 cryptocurrencies on the blockchain, each with different profit potential. Some tokens will do extremely well in the long run, while others will be average performers. But it’s even worse than buying a cryptocurrency that gives bad results if you invest in a scam coin.
There are many cryptocurrencies created by fraudulent smart contract developers. Buying into such a project can lead to the loss of the entire investment. When you consult a cryptocurrency advisor before investing in a cryptocurrency, your advisor can guide you in making investment decisions that have a low risk of being scammed.
Benefit from a professional Outlook
People are diving into crypto for many reasons, from seeking an alternative income stream to looking for suitable retirement investment opportunities. A crypto financial advisor will provide a professional view of the crypto industry and can help you build a lower risk crypto portfolio.
A crypto advisor will help you keep track of your crypto trading activities and prepare your taxes efficiently. They are informed about crypto laws and regulations that may affect how you calculate your taxes.
How to find a crypto advisor
Investors can begin their search with referrals from friends, family or colleagues who have crypto investments and manage their finances successfully. Another way to find a crypto financial advisor is to get professional recommendations from an accountant or a lawyer.
They can also surf the Internet and explore credible websites such as the National Association of Personal Financial Advisors (NAPFA) or the Garrett Planning Network.
How to Verify a Crypto Financial Advisor
Investors can verify an adviser’s credentials by checking their records with the Financial Industry Regulatory Authority (FINRA), the Certified Financial Planner (CFP) Board and other member organizations the adviser is affiliated with.
Before choosing a crypto financial advisor, you need to determine what crypto help you need. Do you want to manage your crypto tax liability efficiently? Not sure which cryptocurrencies to invest in? Knowing what you want help with will determine which professional is right for your needs.
Another important factor to consider is your budget. When considering which professional to choose, it is important to know how much you can afford to pay for the services. There are different fee structures for financial advisors, ranging from fixed fees, hourly fees and commissions to others such as the percentage of assets under management and performance-based fees.
Each fee has unique features and your advisor may charge a combination of these fees. Therefore, it is important to understand the fee structures the adviser uses to charge clients.
Questions to ask a financial advisor
Before choosing a financial advisor, ask specific questions to determine if that advisor is right for you. Here are five questions to ask a financial advisor:
- What do you think about cryptocurrencies as a digital financial resource?
- Do you think cryptocurrencies are a good investment option to add to my portfolio? If so, what percentage of my portfolio should be crypto-based, and should I invest in crypto directly or through an investment vehicle like an exchange-traded fund (ETF)? If not, why shouldn’t I invest in cryptocurrency?
- Do you invest in crypto? If so, how do you decide which coin to invest in? What crypto do you own?
- How long have you followed cryptocurrency and how do you keep up to date with developments in the industry?
- What advice do you have for an investor just starting out in crypto?
When you ask these questions, you will receive answers that indicate whether a particular financial advisor is right for you or whether you should consider another.
The bottom line
Hiring a good crypto financial advisor can help you deal with many issues that arise from investing in this new asset. The advisor can guide you in choosing investments, manage crypto taxes efficiently and advise on financial planning. At the same time, following crypto experts and influencers who offer insight into the ever-changing realm of crypto and blockchain technology will help you stay more informed about the market’s innovations and news.
