The days are getting longer and longer. Birds sing outside my window. The price of bitcoin has reached 23000 dollars for the first time in many months. Does this mean the end of encryption winter?

As a person who has lived in the north for several years, I am skeptical about the early signs of the end of winter. Just then, when you think the winter is over, a tsunami blew in and let the place compromise in one day. Even so, almost no assets exceeded the 25% increase of most crypto tokens in recent weeks, and speculative enthusiasm gradually returned.

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Steve Goeke, chief strategic officer of Khelp Financial, said that for consultants, it is also likely to mean that more customers' cryptocurrency issues are coming.

Goeke said: "If RIA does not have a proper development strategy, the consultant will eventually tell the client to invest his property in the local project of Coinbase.". "As a trustee, this is not good enough. You can't just tell us to throw money here or there blindly. We should give him some choices."

Khelp Financial is a RIA that provides outsourcing encryption solutions for financial industry consultants. This concept is based on the fact that the rapid development, strength and extensive digital asset indoor space are too many for every consultant to understand and make suggestions in a short time. As a result, the Khelp scheme's physical model becomes an advisor to the 1% to 5% client portfolio allocated to cryptocurrency.

Why 1% to 5%?

There are many different views on the percentage of the portfolio that should be allocated to cryptocurrencies, but security is very important.

Goeke said: "Sometimes uncertainty makes sense in the low proportion of portfolio allocation.". "I don't think it makes sense to have more than 5% of the portfolio in this asset class."

It is important to remember that according to a report of the Boston Consulting Group last year, the wealth management industry property in the world will increase by $11.2 billion in 2021, which means that asset management may generate $500 million or more for digital assets.

Khelp provides encryption project investment solutions in the form of independent management account (SMA) and encryption of financial derivatives.

"Everything is actively managed," Goeke said. "Since the bankruptcy of Celsius, Voyager and FTX, the industry dynamics have changed slightly, but we think there will still be a sales market. For us, the asset class is not easy to fade."

Goeke stressed that not only Terra, but also the common failures of all digital assets in the past year occurred in the industries of centralized operators such as Celsius Network, Voyager digital and FTX.

"Blockchain technology has not been unsuccessful," he said. "All the contracts are still in reasonable operation, and the technicality behind all the assets is also reasonable - but the failure of centralized physical assets will seriously affect the price of such assets, and there is no problem in promoting the technicality of such assets."

Differences in expertise

However, traditional finance, including the wealth management industry, has different expertise in digital assets. Investors - especially young and new investors - generally know more about cryptocurrencies than their accounting consultants, and even irreplaceable tokens (NFT).

Goeke said: "I think the investor has learned professional terminology, but many people do not have a deep understanding of the many technical aspects of the project investment she is making. We just grasp the final results.".

For example, the consultant or customer may accidentally find a token that is applicable to a new payment method of distributed ledger. The payment method is cleared in 10 seconds, which is much faster than the average clearing rate of credit card in two days. Although it is easy to understand the value of rapid electronic payment, it is not necessary to grasp the accurate principle of blockchain.

But how much should the accounting consultant figure out?

According to Goeke, the consultant should at least explain why 1% to 5% of the client portfolio should be digital assets, and how these assets are owned by the consultant through independent management method accounts (SMA) or business outsourcing such as Khelp Financial.

"We still expect consultants - who are also our customers - to at least know how to discuss it," Goeke said. "We can't even pretend to be perfect authoritative experts. But this is very important because if you have a client and they are young people, whether the consultant sells their portfolio or not, they may have cryptocurrency in one part of the portfolio."

Effect and value

Another important consideration is that the consultant must pay attention to the long-term feasibility analysis of blockchain application and cryptocurrency itself.

Although the sales market is still highly speculative in foreign exchange, and there are a few coins with no real meaning that occupy many headlines today, digital assets should be called investment opportunities.

Goeke said: "People sometimes use B2C method.". "I have a customer who invests directly in an enterprise built on the blockchain. Because they are traditional foreign direct investments, their assets will be locked up for five to seven years. However, we can use coins or tokens to adopt the same investment method, but eventually there will be similar project investment characteristics and higher liquidity."