Should I Invest In Crypto?

If you are thinking, ‘Should I Invest in Crypto?’, we have some food for thought.

Our MD Carl Widger spoke with Pat Kenny on Newstalk recently about the worrying rise of investment fraud in Ireland this week. Since 2020 a reported €75m has been stolen through investment fraud.

Gardaí have warned of a “staggering” rise in cases of investment fraud with more than €28 million stolen from victims last year. So far this year, more than €13.5m has been stolen through investment fraud more than 2021 and 2022 combined.

This rapid increase in fraud has been aided by the introduction of a new so call “investment class” Crypto Currency.

Lets first off discuss why we never invest our clients hard earned wealth in Crypto Currencies before we look at how to avoid getting scammed.

Crypto Currencies, have of course had rapid growth in the last 10 years and have made a lot of individuals very wealthy. But this doesn’t mean it is suitable for a long term investment that will secure your families future. Ultimately Crypto is a speculative assets (similar to gold) its price is based off what the next person is willing to pay you for it. It is a non productive assets i.e. it doesn’t produce a rising income. In comparison if you look at shares in a public company or a property. The value of these assets is based off the income they produce, which is observable and quantifiable.

We have made the decision not to invest in Crypto as it doesn’t fit our Evidence-based investment philosophy and our promises to our clients. Nothing more.

Here are some of the values that helped us to form our views on cryptocurrency:

1. We cant easily and simply explain to our clients how and why it works and will continue to work. Complexity does not add value when investing.
2. We never jump on the bandwagon and invest in the next big thing.
3. We will only recommend our clients invest in what has always worked
4. We believe in evidence-based investing
5. We believe in the great companies of the world creating new wealth over time
6. Your financial plan (Metis LifePlan) always comes first

None of these values are new to our stance on crypto. They underpin every choice we make when we’re advising our clients.

None of this is to imply that Crypto currencies themselves are fraudulent, but the ease to invest and the promise of high returns has led fraudsters to jump on this band wagon.

Here are a few simple steps to avoid getting scammed:

1. If it sounds too good to be true it probably is: Beware of “guaranteed returns” or the promise of getting rich quick. Real wealth is built over decades not weeks and months.
2. Complex Investment Strategies: Your advisor should be able to explain how and why the investment will work is plain English. If you don’t understand it then do not invest in it.
3. Lack of Transparency: Can you login and view your investment on a daily basis? Do you know who holds your money or who the custodian is? What evidence do you have of this?
4. Avoid unregulated Investments and advisors: We only invest in regulated products. Some advisors who are regulated by the central bank can still sell unregulated products, so you need to ask if each investment product is regulated.
5. High Pressure Sales Tactics: A good investment advisor should partner with you for the long term, they should be in no rush to get your investment. Only invest when you are completely comfortable and have built a relationship with an advisor.
6. Face to face meetings: Some advisors offer remote meetings and although there is no problem with this as part of an ongoing relationship, if an advisor refuses to ever meet you face to face or in their office it’s a red flag.

So what should you do now?

Hopefully we haven’t scared you so much that you just want to leave your money on deposit for forever, (the threat of inflation is just as big a risk) if you want to know more about how we ensure your investments are safe you can read this Article.

If you want to request a face to face meeting with one of our trusted advisors you can do so here Contact

Cian Callaghan, Director Private Clients