I am... Curious About Crypto

Let’s Talk About Building Wealth the Right Way

I am… Curious About Crypto

When you buy “crypto” – Bitcoin, Ethereum, Litecoin (there are a bunch!) – you’re not really “investing.”

When you invest, you own a portion of or lend money to a successful company or group of companies. The companies have intrinsic value, and their performance is measured over time, giving you some expectations regarding return. You can openly learn about these companies’ leadership teams, balance sheets and competitive advantages.

Our take on crypto? It’s gambling, not investing. And we don’t encourage our clients to roll the dice with their hard-earned money.

Avoid the Hype

You can easily get caught up in cryptomania when your peers are touting their growth numbers to you. But crypto is complicated and volatile.

Without diving into an explanation of blockchain, we’ll simply tell you the facts:

Crypto is not an investment security or ownership of a company.
To buy goods and services with it, you must first “cash it out” because the value fluctuates. Can you imagine a big-box store having crypto pricing on goods? How would it know how to price it when the value of these digital “currencies” changes by the minute?
Crypto is kind of like a pet rock. It is worth precisely what others will pay for it based on the rarity and scarcity of that rock. When people no longer want that rock, the value can quickly evaporate, and there are no goods, services or products being sold that create a fundamental value for that rock.

Our financial plans include Investment Management (see the five pillars of our financial plan below). We’re happy to answer your questions about crypto as we build your plan, but the investments we manage are grounded in the value of companies whose success we can monitor.

The Pascarella Five Pillar Perspective℠ on Wealth Management

Income, investments, and assets only provide a small portion of the information we need to successfully develop and implement your financial plan. Together, we will cover a range of subjects.

Financial
Planning

We start by developing an accurate picture of your financial life, learning your life goals and ambitions.

Learn more

Investment
Management

We use our decades of wealth management experience to provide objective opinions designed to help you pursue long-term investment results.

Learn more

Risk Management & Insurance

We develop strategies to help circumvent the effects of events that quickly evaporate wealth, from an unexpected death to debilitating illness.

Learn more

Tax
Planning

We review your tax situation and provide strategies, which can minimize liabilities and maximize opportunities.

Learn more

Estate Planning & Giving

As you accumulate and determine how to distribute your wealth, we help you decide what to spend and what to share.

Learn more

Let's Talk

Before you open that “digital wallet,” talk to us about the risks you may be taking with crypto.

Name

Email

Address

Phone

Question

Thank you!

Oops!

A few more thoughts about crypto:

Before you buy crypto, ask yourself: “How comfortable would I be if the price of an item I want to buy (a head of cabbage, a garden hose, a pair of shoes) changed between the time I walked into a store and when I reach the counter?” That’s what you face with crypto.

Crypto is not a currency; it is a commodity, like gold and silver. The value is derived from the supply and demand of the coin only. So if interest in the “coin” goes down, so does the value of what you’ve spent.

Don’t let fear drive decision-making. Some crypto proponents believe that inflation and other national issues could lead to a severe economic recession, leaving crypto as a way to hedge against a reduced value of the dollar. What they don’t consider is that if enough people want to buy something, Wall Street will sell it to them. You don’t have to go all-in on something so risky.

Crypto is a “religion” to some. As long as people believe in it, it will grow; when they lose faith, it may vanish.

Before you buy crypto, let’s have an open conversation about what you’re trying to do with your finances. Whether you seek to protect what you have or grow it for the future, we’ll help identify the appropriate avenues for your objectives.

Cetera does not offer any direct investments, endorsement, or advice as it relates to Bitcoin or any crypto currency. This Is for Information purposes only.