Crypto & NFT Advisor
News outlets seem to be reporting the newest cryptocurrency or trends in NFTs on a daily basis. Everyone claims the newest cryptocurrency or NFT collection is the next big wave of digital assets, but it can be difficult to discern the valuable investments from the scams.
No one wants to miss out on a chance to cash in, but crypto and NFT investing involves research and acquiring something that may be scarce and of high value. Instead of doing it yourself, a crypto and NFT advisor can guide you toward the best investments for your personal risk tolerance, budget, and goals.
What Is a Crypto Advisor?
Financial advisors help clients manage money and assets to maximize their wealth. Crypto and NFT advisors do the same, but they work with crypto and NFTs specifically. This new frontier is speculative, volatile, and new to many, leading advisors to specialize and ensure they’re serving their clients’ best interests.
A traditional financial advisor may have knowledge of crypto and NFTs, but that doesn’t mean they recognize them as an investable asset class. If you want advice about investing in cryptocurrencies or new NFT projects, it’s best to have an advisor on your side.
If risk is a concern, you can rely on the 5% rule, which means you won’t invest more than 5% of your portfolio in a high-risk category, which includes crypto and NFTs. Even then, you should still have the expertise of a knowledgeable crypto and NFT advisor.
As of March 2022, there were over 12,000 cryptocurrencies on the market. But according to research, 49% of adults claimed to be “beginners” when it comes to understanding crypto and NFTs. If you want to invest in these crypto assets for your future, but you don’t know the best strategy to employ, an advisor with knowledge of crypto and NFTs is your best bet.
Are Crypto and NFTs Investing or Gambling?
Crypto and NFTs are assets that you can invest in to buy, hold, or sell. However, in many ways, crypto and NFTs are still speculative – meaning they carry a high risk of loss. Some advisors are reluctant to recommend projects to their clients, which is why you need a dedicated crypto and NFT advisor to guide you appropriately.
If you’re interested in investing in crypto because you’re dazzled by all the money you can make, that’s more along the lines of gambling than investing. Crypto and NFTs can be risky, so it’s important to proceed with caution and back the most promising projects – much like traditional capital investments.
Crypto and NFT Advisors
Are Crypto and NFTs Scams?
On their own, crypto and NFTs are not scams. That doesn’t mean that scams aren’t rampant in the market, however, which is where an advisor can help. Advisors screen out the noise in the market and steer clients away from crypto and NFT scams. To put the scams in perspective, in 2021 alone, crypto and NFT scams amounted to $14 billion in losses.
How to Buy Crypto and NFTs
If you’ve spent some time studying blockchain technology and checking into different crypto and NFT projects that you want to invest in, you may need to go ahead and buy them yourself. You will need a digital wallet like Metamask to store your cryptocurrencies securely. The same is true of NFTs, which are sold on marketplaces.
Cryptocurrencies can be converted into cash, as long as you find an exchange that supports trading the currency you want to purchase, such as Coinbase. This digital exchange allows you to buy and sell cryptocurrencies and products in your local currency – the fiat currency.
That’s just the process, though. Choosing the right crypto or NFT projects is where the work comes in. You have to research the creator or brand thoroughly and make educated guesses on whether it will increase in value, not to mention avoiding scams that can cost you the price of admission – or worse, gain sensitive information and wipe out your wallet.
Do All Advisors Work with Crypto and NFTs?
The short answer is no. While a lot of traditional financial advisors are warming to digital assets, some are still hesitant to work with clients and recommend projects. If you’re earnestly interested in crypto and NFT investments, it’s best to work with a dedicated crypto and NFT advisor.
Furthermore, not all digital exchanges support cryptocurrencies or fiat currencies. Well-known marketplaces like Coinbase, Kraken, and Gemini are an excellent start, but do your research before you fork over hard-earned cash. Make sure to investigate the exchange’s history of closing accounts, outages, and relationships with traditional financial institutions.
To buy or sell, all you have to do is create an account and connect your wallet. It’s best for your own security to set up your own wallet instead of using the marketplace’s wallet. Make sure you read up on how to store your crypto safely and protect your wallet as well.
Crypto and NFT Advisors
How Do You Become a Professional Cryptocurrency Advisor?
There is no official way to become a professional crypto and NFT advisor. You can become licensed as a professional cryptocurrency advisor, but most U.S. states require businesses retailing cryptocurrencies to become licensed as a money transmitter business. Crypto falls into this category, and the licensing gives the Financial Crimes Enforcement Network (FinCEN) the authority to take action against money laundering and fraud. The individuals are not required to get licensed to work for these businesses, however.
Will an Advisor Recommend Crypto?
For those who believe in the future of crypto and NFTs, they’re a good investment. They offer protection through diversification of assets, and they’re immune to political manipulation or inflation. Mathematical algorithms enforce caps, preventing value dilution.
How Can I Find a Crypto Advisor?
Some financial advisors list digital assets as part of their services, but that doesn’t make them the best choice for your needs. Ask about blockchain and crypto or NFT assets to gauge their knowledge and comfort with these assets.
But to be safe, it’s best to work with a crypto or NFT advisor. You know these advisors believe in the future of digital assets and can help you make the best decisions, rather than trying to talk you out of the investment because of risk or volatility. A company like Crowdcreate has been at the forefront of the crypto and NFT space since the movement’s inception and can help you navigate this complex industry. Schedule a call with us to learn more.
What Should Investors Consider if They’re New to Cryptocurrencies?
Make sure to do your research. Understand the technology behind cryptocurrencies and NFTs – blockchain. Start slowly and only invest what you’re comfortable losing, purchasing small amounts over time with a dollar cost averaging strategy. Crypto can have wide price swings compared to public stocks, so prepare for volatility.
What Questions Should Investors Ask a Crypto Advisor?
Gauge the advisor’s comfort with crypto with questions like:
- What is your opinion of cryptocurrencies?
- Should I have crypto in my portfolio?
- Do you invest in crypto or NFTs yourself? Which ones?
- How do you determine the best projects to invest in?
- How long have you been following the crypto industry?
Why Should I Work with a Crypto or NFT Advisor?
Crypto and NFT Advisors
The majority of financial advisors may not be comfortable with recommendations for investing in cryptocurrencies. A crypto and NFT advisor knows the market and industry and understands the risks involved, giving their clients a better understanding of the potential pitfalls or limitations. Advisors in this space also understand the tax reporting obligations and custody, helping clients make informed decisions about whether this asset class is appropriate for their portfolio.
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Benefits of Working with a Crypto and NFT Advisor
Frequently Asked Questions About Crypto and NFT Advisors
Still wondering about investing in crypto and NFTs? We’re here to help.
What Can I Buy with Cryptocurrency?
Cryptocurrency can be used for any purchase from a seller who accepts cryptocurrency. You cannot use crypto to contribute to an IRA or 401(k), however. Once the contribution is made, however, you can purchase cryptocurrency in some retirement accounts.
What Cryptocurrencies are Available for Purchase?
There are thousands of cryptocurrencies for investing or trading. Bitcoin is the largest – and most famous – boasting a market capitalization of over $1 trillion. The second largest is Ethereum, which has a market capitalization of over $500 billion. There are also brand new cryptocurrencies that began trading with no market capitalizations at all.
Why Is Tax Planning Important?
Crypto and NFTs have tax implications, so it’s important to consult with a tax professional before investing to understand which transactions are taxable and which are not. Exchanging one type of cryptocurrency, such as Bitcoin, with another, like Ethereum, is a taxable incident. You should also have a system in place to track and collate transactions to ensure that you have everything organized – these transactions can amass to thousands in just one year.
Isn’t Crypto the Same as Cash?
No, it’s not. A common misconception is that crypto is viewed the same as cash from a tax perspective, and that couldn’t be further from the truth. When you use cryptocurrency to purchase a product, the IRS views it as a sale of property. So, you have to report the sale and amount of the crypto and the product, which in most cases has increased in value since your original purchase. This is a taxable gain. In the end, the product cost you not only what you paid for it, but the tax on the gain from the cryptocurrency you used for the purchase.
What Should I Know Before Investing in Crypto?
Cryptocurrencies and NFTs are highly volatile. You should only invest as much as you’re comfortable losing without jeopardizing your financial future.
What’s a Common Myth About Investing in Crypto?
Past performance is not an indicator of future investment results. If the asset class in general has performed well recently, that doesn’t mean it will continue into the future. This is what makes crypto and NFTs so volatile.
Can I Hire a Crypto and NFT Advisor to Manage My Investments!
Yes! That’s what we do at Crowdcreate. We’ll help you protect your financial future and reach your goals with your investments in digital assets like crypto and NFTs. Aside from knowing the market inside and out, we have strong connections with creators and brands in this space and can help you determine the best projects to back with your hard-earned cash. Book a call today!
Book a Call with a Crypto Advisor at Crowdcreate
Web3 should not be reserved for institutional investors. At Crowdcreate, we have a team of dedicated and knowledgeable crypto and NFT advisors and consultants to help you make smart investments in digital assets. Crypto is one of the most disruptive technologies since the start of the internet, and you shouldn’t miss out. Book a call today to learn more!
