Crypto Education Remains 'bullish' Despite Market Volatility.

Although cryptocurrency has had a tough time, you still need to understand how the technology works, according to Douglas Boneparth, a certified financial planner in New York.

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Due to a cascade of bankruptcies and liquidity issues throughout 2022, including the collapse of the high-profile crypto exchange FTX, the value of the digital currency market dropped by nearly $1.4 trillion. Earlier this month, Silvergate capital, a crypto-focused company, announced plans to wind down operations, and regulators also closed down Signature Bank, a crypto lender.

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It is no secret that the crypto market rallied at the beginning of 2023, but assets have recently tumbled again, with Bitcoin falling below $20,000 on Friday, following a sell-off in the U.S. stock market. In spite of this, Bitcoin surged by 10% on Monday after U.S. regulators announced their plans to safeguard the depositors and financial institutions associated with Silicon Valley Bank in the wake of the news.

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The president of Bone Fide Wealth, John Boneparth, says the recent events and the volatility in the crypto market have only made him more enthusiastic about learning more about the technology.

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“There is no doubt that the decentralized financial world is more interconnected with the traditional financial world than ever before, and it is doing so more so than ever before,” he added.

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He has been an early adopter of digital currency since 2013, mostly in bitcoin, and he believes there will be plenty more to learn about the technology we will inevitably see more of in the future.

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“It doesn't necessarily mean that you should be allocating your money there at this point,” he explained. But he believes that you need to invest your time and energy in researching the future of technology to see where it could be headed.

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“My journey has been filled with a great deal of learning without me having to take a lot of risks along the way,” Boneparth said.

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In regards to cryptocurrency, he said that learning about the technology and how decentralized finance works is the best thing that you can do when it comes to being familiar with the technology. “A little bit would go a long way,” he added.

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In response, Boneparth said, "That's some powerful stuff." “Rather than putting your money into the latest craze in crypto, it's more about learning about what it's all about and how it works.”

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The impact of crypto on investment goals

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Although many advisors will not recommend their clients buy or sell digital currency, Boneparth noted that investors may come to his practice for guidance on existing crypto allocations, regardless of whether they intend to buy or sell it.

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"Some people have amassed a lot of money with cryptocurrency," he said. "I'm responsible for showing them what risks there are, how their long-term goals can be affected by this concentration and asset."

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It is essential to know how owning any particular type of asset may affect your financial goals. This is especially true when it comes to "volatile assets" like cryptocurrency, according to Boneparth.