It looks like cryptocurrency has entered a whole new arena and crossed deep into mainstream territory. According to some financial advisors, everyone should have crypto as part of their portfolios no matter their ages.
Cryptocurrency Is Rising to the Top
There was a time when financial advisors across America and abroad were telling their clients to avoid cryptocurrency at all costs. The idea was that these assets were dangerous not only because they were volatile and vulnerable to price swings, but because they attracted malicious actors eager to engage in theft and other criminal activity.
It now appears that that attitude has changed, and financial experts everywhere are now recognizing cryptocurrency as a valid asset class that should be part of any well diversified portfolio. Douglas Boneparth – president of Bone Fide Wealth in New York – says that his firm caters primarily to millennials and other younger generations. He is trying to sway them towards investing in crypto, as he believes it’s the investment class of the future.
In an interview, he stated:
Four years ago, maybe one in ten clients and prospects were coming in the door wanting to learn more about digital assets and cryptocurrency. Today, in just four years’ time, I think it’s closer to 50 percent.
He fully acknowledges that the remaining 50 percent are in dire need of more education before they enter the crypto space. Ivory Johnson is another financial expert who works primarily with older investors (age 65 and up). Even he says his clients are learning all they can about crypto and investing in it with enthusiasm.
Anytime you have a 65-year-old man from Long Island calling you up and talking to you about Ripple, what that tells you is they are having those conversations with their friends.
Both men say that just because you already own crypto and have potentially made quite a profit through this new asset class doesn’t mean you can’t benefit from the advice and knowledge of a financial planner. Boneparth says:
The things we do as financial planners and financial advisors for our clients don’t change because a new asset class has emerged and now has demand around it. You still have to stick to the very things that help your clients get to the goals that they have for themselves.
Hold Onto It!
He also says that crypto should be looked at as a long-term asset, claiming:
Obviously the more volatile an asset class, the longer the time frame you want.
Lastly, he commented that while some experts are likely to continue seeing crypto as risky, he advises that they still educate themselves, as they will have customers that are curious and will want to know about it, and thus being unable to offer crypto services or related products may prevent their firms from getting bigger.