Cryptocurrency is a space with no standards for offering advice or education to investors. New investors coming into the space either rely on self-learning or the education provided by people in their network who may or may not be qualified enough to offer cryptocurrency investment advice. That may be why you need a crypto consultant.
There are benefits and risks to working with cryptocurrency consultants and we explore it all in this article.
What Is Cryptocurrency Consultation?
A cryptocurrency consultant is a professional who guides you towards making the right decisions related to cryptocurrency investments, usually for a reward. They typically are experienced traders and investors and are able to implement sophisticated crypto techniques to make consistent profits.
The cryptocurrency consultant protects their clients from illegal practices and ensures they follow best practices across accounting and taxation.
Private cryptocurrency consultants are usually not required to hold any sort of traditional accreditation, unlike a certified financial planner (CFP). As such, investors who rely on these consultants face the security risk of fraud should they do business with a fraudster posing as a cryptocurrency consultant.
Why You Need a Crypto Consultant?
Despite the risks associated with wrongly hiring a crypto consultant, there are far more risks involved in diving into the crypto space without any form of professional guidance. While self-learning is important, not every newbie has the fortitude to grasp crypto concepts quickly or to make correct investment decisions working with what they learned.
In most cases, you’re better off investing in the services of a qualified cryptocurrency consultant, especially at the early stages of your cryptocurrency journey. Here are practical reasons why you need a crypto consultant if you’re looking to improve your investment experience and outcome.
Learn The Cryptocurrency Market Faster
Cryptocurrency is a relatively new technology that takes some studying and learning to understand. Bitcoin alone is still a mystery to most investors, even though it has existed for nine years now. Coupled with the more sophisticated digital tokens and ecosystems we have today, there are simply lots of technical jargon and market processes to come to terms with as an investor. Failure to do so puts you at financial risk.
A qualified crypto consultant helps you learn quickly the ins and outs of the cryptocurrency you’re investing in and their underlying blockchain. While you’re primarily investing to make money, prioritising your market education over simply making profits would help you better navigate the cryptocurrency space, achieve self-sufficiency, and save resources in the future.
Save Stress On Predicting Market Movements
Everyone invests in cryptocurrency to make profits. Profits only come from predicting market turns or price movements of assets correctly and making moves accordingly.
Having market knowledge does not guarantee an investor is great at predicting market movements and, therefore, confident in his ability to win more investments than he loses. It takes time to understand fundamental and technical trends used for market prediction – a time most new investors do not have.
Most cryptocurrency consultants are experienced chartists, experts at studying and interpreting fundamental and technical trends. They are better positioned to provide you with market information that can help you make the most informed investment decisions possible.
Get Help With Cryptocurrency Regulations
The cryptocurrency and blockchain industries are constantly under watch by lawmakers and have regulations that investors must follow. You risk walking into a regulatory or compliance mess without a credible crypto consultant.
Consultants have expert knowledge of crypto legal floors. They can guide you through the process of meeting all regulations within the industry, especially if you’re setting up a crypto-related business. A consultant can also help you troubleshoot compliance issues when working with other cryptocurrency experts or firms.
Enjoy A Faster Route To Income
It’s easier and time-saving to make money in cryptocurrency investment or trading when working with a crypto consultant. A prudent consultant would look at your finances and help you generate cryptocurrency investment strategies that could make you money faster.
Being guided on what crypto asset to invest in at the early stages of your investment career would help you quickly identify assets with growth potentials and learn how to time market entries.
Asset Protection And Portfolio Management
Most newbie investors do not have strong asset protection mechanisms or understand the importance of portfolio management. They simply stack their crypto assets on an exchange platform or lightly secured wallets, exposing themselves to malicious actors. In the event of a platform hack, these crypto-assets can be wiped off.
A crypto consultant can help you get started with better asset security protocols on exchanges or wallets and advise you on backup procedures.
Furthermore, some consultants offer cryptocurrency portfolio management services. This can save you stress on the day-to-day management of your investment positions while enjoying passive income overall.
How To Detect Fake Crypto Consultants And Avoid Them
Now that we’ve established the importance of hiring a cryptocurrency consultant, it’s important to note that there are bad actors forging crypto consultants and looking to exploit the marketplace.
Investors are often attracted either by prospects of a remarkably lowered entry barrier or outrageous results within a short period. As a new cryptocurrency investor, it can be difficult to differentiate fake consultants from credible ones.
Here are tips on spotting a fraudulent crypto consultant and avoiding them.
Hidden Identity
A fraudulent cryptocurrency consultant is careful not to reveal his true identity or associate them with his business. Anonymous crypto experts stick to avatars, code names, and primary contacts forms like forms only or app-based chats. Even when names and phone numbers or office addresses are given, there are no guarantees that these are fake.
Looking at the track record of your intended hire would help you tell a credible consultant from a fraudster. Start by researching online for the name of the company or consultant and the cryptocurrency name, plus words like “review,” “scam,” or “complaint.” This should give you insight into what others are saying.
Comparing profiles and promised results with three or more other random consultants and see what’s out of place. If the company has provided communities on social platforms like Telegram and Discord, you can join these communities to interact with random members.
Guarantees You Would Make Money
Is the consultant guaranteeing you instant results or assured profits? That’s a red flag.
Cryptocurrencies are highly volatile assets within a widely fluctuating financial market. It is difficult to guarantee your investments would make you any money or that you would always make a profit.
Most new investors assume they would always make money from cryptocurrency, and fraudsters use this optimism to their advantage. They promise free money on entrance into their programs to lure in unsuspecting investors.
While credible consultants are there to help you make money, they would always explain how things could go wrong, and your investments fail. They would not guarantee you constant short-term profits. Instead, they emphasise maintaining a long-term profitable curve possible only through market education and discipline.
No Crypto Or Blockchain Career Experience
A credible cryptocurrency consultant must have verifiable blockchain and cryptocurrency experience, preferably over five years. If this is lacking, it’s an obvious red flag, and you shouldn’t do business.
Do a bit of research on the consultant’s track records and conversations around social platforms (if any) to measure his experience. If you have better knowledge of cryptocurrencies and blockchain, you can always engage the said expert in conversations to gauge their knowledge around peculiar investment areas.
What To Look Out For When Hiring Credible Crypto Consultants
Before deciding to pay a crypto advisor, there are ideal qualities you should look out for that benefit you. These are:
Prioritise Education Over Instant Profits
Prioritising your market education over instant profits would pay better dividends in the future. A credible crypto consultant understands this and would be interested in his clients understanding exactly what they are doing at any given time.
If they are giving market information or directing you to invest in a certain asset, their reasons must be backed by rational technical and fundamental analysis and not frivolously or emotionally driven.
Tailored Investment Strategies
Credible blockchain consultants understand that one size does not fit all. Therefore, their consultation services are bent on building custom investment strategies that work just for you.
They do this by looking at your finances, risk appetite, and preferred investment situations and then balancing with proven investment strategies tweaked to fit your profile. By the end of the consultation sessions, you should know exactly what crypto investment strategies will generate income for you.
Credible Partners Or Media References
Nothing speaks better of credibility than having a cryptocurrency expert featured in top industry-specific media publications or proven to have worked with credible partners. Media success perspectives are always a powerful bragging right. Although, not all reliable crypto consultants have this bragging right. If your chosen outlet has these external references, it’s a plus.
Transparency
Every legit cryptocurrency consulting firm wants to be known and is careful not to damage its reputation. As such, they put all information about their services out there, withholding nothing. You should be able to track your consultant to a valid office address and get decent reviews about their services online.
Track Record Of Decent Results
The job of a crypto consultant is to help you make money from cryptocurrency in the long run, not lose it. There should be a proven track record of decent results, consistent over a period. Given the volatility of the cryptocurrency market, it would be unwise to expect only wins or an overly high winning rate. Wins should outweigh losses by a margin enough to keep you in profits over time.
As a rule, if its results are too good to be true, it probably isn’t. If they are too bad to be impressive, it’s probably not worth your money.
Reasonable Pricing
While there are no standardised pricing brackets for crypto consultation services, the price ranges of a reliable cryptocurrency advisor should be cost-effective. Compare their service offerings against the prices and determine if the value offered is worth the charge. If it helps, you can compare prices among different consultants.
Is Crypto Consultancy A Good Investment?
Employing the services of a qualified crypto consultant is one of the best investments you can make when starting out investing in cryptocurrency or opening a related business.
Since the cryptocurrency market is largely unregulated and filled with scams, it’s crucial to vet anyone you decide to pay for money advice properly. Research online for the track records of the said expert to see what others are saying and set up exploratory meetings to measure their credibility.
For cryptocurrency advice, try our crypto consultation services. Here, we work with you to decide on the best cryptocurrency income-generating strategy for you and offer assets protection advice. So you can learn faster and start earning from cryptos immediately with complete peace of mind.
If you’re ready to start making income from cryptocurrencies and blockchain, take our 60-minute consulting session here.
