Despite their newness and well-known volatility, cryptocurrencies have been constantly gaining ground in the financial system as a profitable investment venue due to their decentralized nature and high return potential. So, it comes as no surprise that more people are jumping into cryptocurrency, swelling the ranks of investors, even in times of high uncertainty like the ones we’re traversing right now, commonly referred to as the crypto winter. The latest statistics reveal that in 2023 the number of crypto users worldwide surpassed 420 million, proving that global cryptocurrency adoption is on the rise.
But beyond the hype and the enthusiasm, crypto remains an extremely complex and sometimes confusing asset class that people don’t seem to understand well enough. Many don’t know much about the intricate technology that enables the existence of crypto, where their value comes from, or what makes Ethereum different from other digital assets. People still have a lot of questions regarding the nature of crypto and its investment potential, which is why beginner investors are constantly looking for answers and guidance in this respect.
It might seem that getting advice on crypto investing shouldn’t be a problem. After all, there’s a wealth of information on the internet about this topic and countless individuals who seem more than willing to share their knowledge and wisdom with those who are just starting their journey into crypto investing. However, you need to be careful about the people you get advice from because not all sources will point you in the right direction. Following instructions from someone who has a limited understanding of the crypto world can cause you to make disastrous decisions and lose all your funds in one go.
So, if you want to avoid these unfortunate scenarios, here’s what you should and shouldn’t do when seeking crypto advice.
Let’s start with the sources you should steer clear of when searching for accurate information and advice on crypto investing.
Relying on friends and relatives
Although cryptocurrency might be a hot topic of discussion in your close circle of friends and relatives, and you enjoy talking to them about market trends, investment options and strategies or the latest developments in the industry, you should probably refrain from taking investing advice from friends and family, unless they are either professional financial advisors or reputable crypto experts with extensive knowledge and experience in the field.
There’s usually one friend in every group who seems to be more knowledgeable than the others and whose opinion carries more weight. But even so, they’re still in no position to give advice on such a sensitive and deeply complex topic as crypto investing. This would require years of in-depth study in economics and finances, which most people don’t possess.
Online forums and communities
It’s nice to have a community of people with whom you can talk about different crypto topics and bounce ideas off one another. Being open to communication and listening to multiple perspectives can help you broaden your horizons and gain a more comprehensive view of the crypto industry. You can also learn important lessons from other people’s experiences. However, you shouldn’t base your investment decisions on what others have done or are doing, given that investing is a highly personal endeavor and circumstances change all the time.
People you don’t know
As an investor, you should always know the people and entities you interact with professionally. If someone approaches you offering advice or presenting you with a great investment opportunity but you have no idea who that person is, the best thing to do is mind your own business and politely decline the proposition to keep yourself safe from scams and fraud.
At this point, it might seem like it’s almost impossible to gain access to reliable sources of information and find trustworthy advice. However, there are many professionals and organizations that can provide the help you need.
Certified financial advisors
Financial advisors are professionals who can offer financial advice to clients on a variety of money matters, many of which also have expertise in cryptocurrency investing. A financial advisor who is versed in this particular area can help you with any matter related to crypto investing, from identifying the best digital assets to add to your portfolio to developing an investment strategy for building wealth and managing risks.
If you want to make sure the specialists that you’re considering are indeed qualified to provide financial advice, you need to check their credentials. Certificate in Blockchain and Digital Assets (CBDA) or Certified Digital Asset Advisor (CDAA) are the qualifications you should look for when vetting financial advisors.
Recognized crypto experts
It’s not just financial advisors who can provide guidance when it comes to crypto investing. There are also many crypto experts, analysts and influencers who have dedicated years of their life to the crypto phenomenon, either by studying the ins and outs of the industry, investing in digital assets or developing their own crypto projects. Some of these experts are well-known public figures that enjoy great popularity in the crypto sphere, such as Vitalik Buterin, Michael Saylor, Coin Bureau, Andreas M. Antonopoulos, Elizabeth Stark and many more. They might not give explicit advice on crypto investing, but they share a lot of information that can be useful to crypto investors.
Last but not least, you also have a variety of educational platforms and learning resources at your disposal that can help you master the basics of crypto investing and expand your knowledge in this field. Exchange platforms like Binance also provide useful educational content that addresses a plethora of crypto-related subjects, from blockchain technology to NFTs and everything in between, so you can use these resources as a starting point for getting educated on all things crypto. Besides, you can also consult official sources such as the Certified Financial Planner Board of Standards and read their guides on cryptocurrencies and other digital assets.
Investing in crypto can be both profitable and risky, so getting the right advice from the right sources is crucial. Hopefully, you’ll be able to find the assistance and support you require and become a successful crypto investor.