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Crypto Financial Advisors — Everything You Need in 2024
Apr 22, 2024

Crypto Financial Advisors — Everything You Need in 2024

As the crypto market continues to gain further momentum and interest in 2024, more and more investors are looking to crypto-financial advisors to help them navigate this complex market, and will often pay handsomely for their help.   

So, with digital currencies like Bitcoin and Ethereum now firmly embedded in mainstream finance, expert guidance is becoming increasingly sought after, and this has opened up a whole new subsection within the financial services industry; and a lucrative one at that. 

However, many financial advisors who want to break into this niche still lack the tools and context in order to effectively navigate through the crypto space themselves. So in order for aspiring crypto advisors to provide the best advice and strategies for newcomers, they will need to first have a solid understanding of the digital asset and blockchain space, what investors need help with, and the tools needed to create a strong crypto portfolio.   

This article will, therefore, act as an evergreen guide for aspiring crypto advisors, and will highlight the main things they will need in order to provide crypto investment advice that not only protects clients but can potentially bring about a good return on investment (ROI). 

Let's get right into it!

What is a Crypto Advisor?

A crypto advisor is a specialised type of financial advisor whose expertise primarily revolves around investing in cryptocurrencies like Bitcoin and Ethereum (to name a few), and how to make the most of the underlying technology that gives them value. 

In terms of what a crypto advisor offers, their main role is to provide strategic and bespoke investment advice for the following two things:1) Identifying investment opportunities 

For investors who are new to cryptocurrency, or who lack the time to learn about the opportunities on offer, crypto advisors can use their expertise to help identify crypto investment opportunities for maximum returns. But for those who are more risk adverse, crypto advisors can also help build diversified crypto portfolios.

2) How to navigate the volatility and risks of the crypto market 

The other role of a crypto advisor is to help new investors navigate the volatility of the crypto market, highlight risks, best security practices, and the best digital wallets and exchanges to use; amongst other things. 

How to Become a Crypto Financial Advisor? 

For traditional financial advisors wanting to break into this exciting new frontier or veteran crypto traders who believe they can give tried and tested advice, you will need to do the following in order to be seen as a credible crypto advisor: 

1) Pass a financial advisor qualification 

For anyone looking to become a credible crypto financial advisor, obtaining a recognised financial advisor qualification is a good place to start.

Although regulatory frameworks for crypto advisories are still vague and ever-evolving, having a formal qualification, such as the Diploma for Financial Advisors (DipFA) in the UK, can give you a solid foundation. This qualification not only boosts your credibility but also ensures you meet the basic legal requirements to offer financial advice. Additionally, should regulations become stricter or more defined, having this qualification means you are already ahead, ready to adapt to new guidelines without delay. 

2) Make sure you have a solid historical understanding of crypto and blockchain  

Having a solid understanding of the origins and evolution of crypto and blockchain is vital for those wanting to become crypto advisors. From the inception of Bitcoin to the rise of Ethereum and beyond, having a strong historical grasp will no doubt serve you in your advisory role. 

This includes being able to elaborate on the trajectory of major cryptocurrencies and the impacts of landmark events, such as the ICO boom, the birth of DeFi, and the introduction of NFTs. What this does is allow you to anticipate future trends, avoid common mistakes, and adapt to new challenges in the crypto space.

3) Know how to navigate the current landscape 

The crypto industry is highly dynamic, and, therefore, requires a solid understanding of established platforms, technologies and tools; as well as newer value propositions. This includes being familiar with major exchanges like Binance and Coinbase, the best DeFi platforms and how to use them, and the latest innovations like zero-knowledge proofs; to name a few.

This knowledge allows you to provide foundational and up-to-date advice, positioning you as a trusted expert in a rapidly evolving market.

4) Have an investing methodology(s) to adhere to 

A successful crypto advisor will often have an investing methodology(s) that has been tried and tested, and that has brought about impressive profit/stable returns in the past. This will often come as a result of leveraging different crypto investing strategies, diversifying across various cryptocurrencies, and using tools like staking, lending and crypto robo-advisors; to name a few. 

It is worth noting that having the ability to blend traditional investment principles with the unique characteristics of the crypto market can prove to be very useful. This approach helps in designing portfolios that align with individual investor goals and risk tolerances.

5) Have solutions readily available  

An effective crypto advisor must be able to refer clients to the best tools and resources available, and this includes exchanges, custody solutions and wallets. Furthermore, having an in-depth knowledge of the regulatory environments of different countries, and how this impacts crypto investing is also very important. Failure to do so could result in consequences such as accounts being frozen, fines, and even legal proceedings in some cases.  

This comprehensive understanding enables you to offer tailored solutions to your clients, ensuring their investments are secure and their needs are fully met within the existing legal frameworks.

6) Have successful case studies to refer to  

Being able to demonstrate your expertise by using successful case studies is fundamental for instilling trust in clients. These case studies should highlight your ability to generate profit or stable profits during stable and volatile periods and should be backed up by an investing strategy or thesis to rule out luck. 

Without this, you will struggle to bring on clients.

Things Investors May Ask a Crypto Financial Advisor 

In the event that you feel ready to become a certified digital asset advisor by having met the above recommendations, then it may prove very useful to have a rough idea of the things crypto clients may ask you, and know how to respond to questions like these. 

Below are some things that clients may ask crypto advisors:

What are the best cryptocurrencies to invest in? 

Clients will often ask this question and will expect you to mention specific crypto tokens that will maximise returns and minimise risks. Instead of naming specific cryptocurrencies, advise on the criteria for selecting promising cryptocurrencies, such as market capitalisation, liquidity, technological innovations, and the strength of the underlying community and development team. Also, emphasise the importance of conducting thorough research.But if your clients insist on more specifics, then it may be worth recommending proven crypto strategies, which are essentially publicly available portfolios that are made up of various different cryptocurrencies, and that are put together by traders and investors. These are usually hosted on online platforms which show past/current performance, what cryptocurrencies are in each portfolio (and their percentages), and the objective of each. 

What are the best exchanges to use? 

When asked about the best crypto exchanges, be sure to first analyse utilities that will benefit your client, including security measures, user interfaces, transaction fees, and the variety of available cryptocurrencies. Highlight the importance of choosing exchanges that comply with local regulations, and that have a strong track record in terms of security and customer service. One example is Coinbase, which, although has some relatively high-fees, is more regulated and secure than most other exchanges. 

But for those who are more interested in DeFi, it may be worth creating walk-through videos on how to navigate established decentralised exchanges (DEX) like Uniswap, as these are more complex to use compared to centralised exchanges. Also mention the risks, including phishing attacks, and being exposed to more risky investments.  

What is the best crypto ETF? 

This will be a very common question, and the reason is that new investors to crypto will most likely be familiar with traditional ETFs, and, therefore, will be aware that crypto ETFs (like a spot Bitcoin ETF) will facilitate diversified exposure to cryptocurrencies without the need to directly purchase and store digital assets. 

However, It's important to note that the "best" ETF depends on the investor's specific financial objectives and risk tolerance. Advise clients to consider ETFs that provide transparent, cost-effective, and regulated ways to invest in the crypto market.

How should I diversify my crypto portfolio? 

Diversification is essential for investors managing risk during volatile times in the crypto market. Therefore, you should explain to clients that diversifying a crypto portfolio can involve merging different types of cryptocurrencies, stablecoins, and crypto ETFs; amongst other things.

Crypto strategies are an ideal way of diversifying, and investment platforms like ICONOMI have many different strategies with different objectives, timeframes and risks to choose from.  

How does cryptocurrency taxation work? 

The first thing you should mention is that crypto tax can differ depending on the jurisdiction and that it involves different treatments based on the transaction type; such as capital gains or income tax. But one simple thing you can do is to share information you have found from reputable online sources such as Koinly.

But to be on the safe side, advisors should advise their clients to consult with a tax professional who is knowledgeable about crypto in order to ensure compliance and efficiency.

How to mitigate crypto exchange risk? 

Many first-time exchange users may be a little apprehensive when using these platforms. For this reason, you should first recommend a reputable exchange that has tight security measures such as two-factor authentication and cold storage options.

Additionally, suggest best practices like using hardware wallets for bigger amounts, and not keeping all your tokens on an exchange as ways to reduce risk.

What are the best crypto custody solutions? 

Here, you should explain that the best crypto custody solutions depend on the client’s needs for security, accessibility, and compliance.

For individual investors, hardware wallets or secure software wallets could be ideal, while institutional clients might require custodial services from regulated providers. Highlight the importance of selecting custody solutions that offer the right balance of security features and ease of access, tailored to the client's investment scale and frequency of transactions.

ICONOMI Advisors — Crypto Advisor App Solution 

There is great news for aspiring crypto financial advisors, and that is a crypto advisor app solution that will make your life a whole lot easier. Enter ICONOMI Advisors.

ICONOMI Advisors is a comprehensive crypto management platform that is built specifically for crypto advisors. What's great about this platform is that it facilitates a smooth transition for traditional (or novice) financial advisors into the world of digital assets, and greatly helps them manage and grow their client portfolios in an effective and efficient manner.Let's delve in further.

The platform offers an easy-to-use private dashboard that allows crypto advisors to manage multiple portfolios efficiently. By connecting to over ten global exchanges, ICONOMI Advisors ensures that clients receive the best possible price discovery during portfolio rebalancing, increasing the chances of returns on investments.

Furthermore, ICONOMI Advisors addresses security concerns through a secure custody solution that includes options for transferring assets into and out of cold storage upon request, blending security with accessibility.

ICONOMI Advisors is also equipped with sophisticated risk management features and automation tools. These resources help advisors tailor their strategies to various market scenarios, utilising a trade engine with multiple trading algorithms to secure the best prices and minimise exchange costs.

Last but not least, for advisors aiming to establish their brand, ICONOMI Advisors offers a branded dashboard for onboarding private or professional investors. This feature, coupled with comprehensive support for invoicing, reporting, tax preparation, and compliance with AML and KYC regulations, enables advisors to focus on what they do best — guiding their clients through the complex landscape of cryptocurrency investment while growing their asset management business.


As crypto continues to gain more interest, the demand for knowledgeable crypto advisors will only increase. This, in turn, will provide many exciting opportunities for talented financial advisors who, with the right background and experience, will be able to bring immense value to new crypto investors and, in turn, a potentially lucrative career.But to get the most out of this, crypto advisors should consider integrating the likes of ICONOMI Advisors into their operations, as they provide everything needed to succeed—from securing client investments to navigating regulatory landscapes.

So considering taking a leap into crypto advising? If so, then consider booking a demo call with ICONOMI's team today! 

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