We suggest that clients who are interested in cryptocurrency approach them as speculative investments and consider their goals as well as the risks involved. For those who already have a diversified portfolio and a long-term investment plan, we see cryptocurrency as being used primarily for trading purposes outside the traditional portfolio. Here are some aspects to consider about cryptocurrency investing in general, as well as differences between investing directly in the spot market vs. indirectly.

Potential for appreciation:
Some investors are attracted to the volatile price swings as a potential for profit.

Portfolio diversification:
Some investors believe that if the lack of correlation with other asset classes continues, cryptocurrency could add diversification to a portfolio.

Transaction transparency:
The use of blockchain records transactions between parties in a verifiable and permanent way visible to all.

24/7 access:
Unlike traditional exchange-traded products, cryptocurrency can be bought or sold at any time.

Control:
With no ties to banks, regulators, or governmental policies, cryptocurrency theoretically provides user autonomy.

Regulation:
The investment products offered at Capital Trust Limited provide an element of regulation and consumer protections that spot trading lacks.

Recoverability:
Access to conventional investment accounts can usually be recovered if your credentials are misplaced.