You should have crypto in your wallet, regardless of your age

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Investors of all ages should be looking to add cryptocurrency to their portfolios, according to some financial advisers.

“Four years ago, maybe 1 in 10 clients and prospects showed up to learn more about digital assets and cryptocurrency,” Chartered Financial Planner Douglas Boneparth, President of Bone Fide Wealth told New York, a company that mainly works with millennials. “Today, in just four years, I think it’s closer to 50%.”

There is still a ton of education to be done for the remaining 50%, CNBC advisory board member Boneparth said at the CNBC Financial Advisor Summit on Wednesday.

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Ivory Johnson’s clients tend to be a bit older, but also interested in cryptocurrency, said CFP and founder of Delancey Wealth Management.

“Anytime you have a 65-year-old man from Long Island calling you up and telling you about the ripple, what it tells you is that they’re having these conversations with their friends,” said Johnson, who is also a member of CNBC. Advisory board.

If you did a murder

If you are looking to get into cryptocurrency, an advisor can help you find the right balance in your portfolio. Some may also help you buy coins or invest in other commodities on display, such as a bitcoin trust or an exchange traded fund.

It is also useful to work with an advisor if you already own a cryptocurrency, especially if you have made a lot of money with the asset.

“The things we do as financial planners and financial advisers for our clients are not changing as a new asset class has emerged that now has demand around it,” Boneparth said. “You always have to stick to the very things that help your customers achieve the goals they set for themselves.”

With a client or potential client who has made a lot of money on crypto, Bonparth likes to encourage them to use the winnings to achieve the big goals they set for themselves. It could be buying a house or paying down debt, he said.

For other customers, it’s important to view cryptocurrencies as a long-term investment, Johnson said.

“Obviously, the more volatile an asset class, the longer the delay you want,” he said, adding that many stocks in the S&P 500 are just as volatile as bitcoin.

Accept volatility

True, cryptocurrencies are very volatile, which can be a hindrance for both advisers and investors.

“I’m not surprised that advisers see this as risky,” Johnson said. “It is eight times more volatile than the S&P 500.”

Nonetheless, advisers should be made aware of the asset so they can have conversations with interested clients, he said.

“It’s just about staying relevant whether you put it in a wallet or not, I think it does your clients a disservice if you’re not educated,” Johnson said.

Bonparth agrees. “If you want to grow your practice over the next 10-20 years and you don’t educate yourself even if you don’t agree, you will probably have a hard time growing,” he said.

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Disclosure: NBCUniversal and Comcast Ventures are investors in Acorns.

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