Blockchain and Cryptocurrencies: A Primer for Financial Planners Part Two

Posted on February 18th, 2019 at 4:30 PM
Blockchain and Cryptocurrencies: A Primer for Financial Planners Part Two

From the Desk of Jim Eccleston at Eccleston Law LLC:

This is the second article in our three-part series on blockchain and cryptocurrencies. Part two is a break-down of how cryptocurrencies can be utilized as investments.

The reasons to invest money into digital currencies is best understood in three parts: 1) a strongly-held belief that the reign of the US dollar is coming to an end, 2) a desire to support the push towards a single global currency, and 3) an interest in supporting the growth and development of the blockchain technology that various digital currencies utilize.

For standard buying and selling of crypto, it can be done through a digital currency exchange account (the US exchanges include namely: Coinbase, BitFinex, BitStamp Gemini, and GDAX) which allow the investor access to numerous cryptocurrencies for purchase and storage options. An investor could also view investing in a specific cryptocurrency as proxy investment into that company’s underlying blockchain technology, since investing in the technology itself is rather exclusive at this point in time. Another option for diversifying in digital currencies could take the shape of an Initial Coin Offering (an “ICO”), much like an Initial Public Offering (“IPO”) of a company’s stock.

Investing into cryptocurrencies, however, is not for the faint of heart. Nor is it for someone looking to hop on to the latest investing trend. Cryptocurrencies are highly volatile and their indexes are difficult to track. They require a significant amount of planning and research (there is a lack of regulation in this area still) and an extremely-involved investor or financial planner.

The third and final part of our series will focus on the impact of both blockchain and cryptocurrencies on a business.'

The attorneys of Eccleston Law LLC represent investors and advisors nationwide in securities and employment matters. The securities lawyers at Eccleston Law also practice a variety of other areas of practice for financial investors and advisors including Securities FraudCompliance ProtectionBreach of Fiduciary DutyFINRA Matters, and much more. Our attorneys draw on a combined experience of nearly 65 years in delivering the highest quality legal services. If you are in need of legal services, contact us to schedule a one-on-one consultation today.

Related Attorneys: James J. Eccleston

Tags: james eccleston, eccleston law, eccleston law llc, eccleston, blackchain, cryptocurrencies, investments, ico, inital coin offering, bitcoin, bitfinex

Return to Archive

TESTIMONIALS

Previous
Next

I am so blessed to have you and your dynamic team defending me. Your ethics, forward thinking and strategies are amazing.  You guys are the best group of attorneys in the country that I could hire to handle this complicated case.

Cindy C.

LATEST NEWS AND ARTICLES

January 21, 2022
CFP Board Establishes New Appeals Commission

The Certified Financial Planner (CFP) Board of Standards has established a new Appeals Commission. As the name suggests, the Appeals Commission possesses the sole authority to adjudicate appeal hearings.

January 20, 2022
Edward Jones Fails To Convince Supreme Court To Review Federal Preemption of Account Fee Suit

Edward Jones & Co. failed to convince the U.S. Supreme Court to analyze how a federal securities law impacts a client dispute pertaining to fee-based accounts.

January 19, 2022
SEC Charges Texas Entities Over Oil and Gas Fraud

The Securities and Exchange Commission (SEC) has charged The Heartland Group Ventures, Heartland Production and Recovery, six other Heartland-affiliated entities, four Heartland-affiliated individuals as well as several oil and gas operators.