Switzerland’s largest bank UBS gives crypto advice to investors. It has recently shared various investing strategies that could be optimal for many to gain exposure to crypto-assets. This investment strategy focuses on indirect investments, which are much less volatile and risk-free than directly getting into BTC, ETH, or other alts. It also mitigates the regulatory risks that come with cryptocurrencies.
Switzerland’s largest bank UBS gives crypto advice
The idea behind this crypto advice is to invest in them but not directly. UBS’s analysts think that investing in crypto is a highly speculative trade and possesses many risks. The recent crash from the ATH has been one of the reasons that the bank has been keen on not regarding it as a safe haven for investors. In fact, the report published by them says that the crash shows that crypto is not an effective diversification from traditional markets, nor is it a digital form of gold. The main USPs have supposedly been killed by the recent crash.
Therefore, analysts think that while the technology behind crypto is promising, taking an indirect investment route is a better option. So, their first recommendation is to invest in companies that are building the infrastructure for crypto. This is because the infrastructure can be used for a wide variety of decentralized applications, making them likely to succeed. Companies that build the software for such applications or hardware that validate the same, like ASICs or GPUs, seem like a good investment.
Then they recommended companies that can make use of these applications. These companies can span a wide variety of industries like fintech, IT, Insurance, and more. These applications used by companies can bring a huge opportunity and improve businesses drastically over a period of the next 5-10 years.
Are direct investments bad?
Crypto is just one application of bl0ckchain, and therefore its success or failure doesn’t speak for the entire industry. But still, it doesn’t mean that investing in them is a wrong decision. It will completely demand where you put your money, for how long, and if you can withstand the volatility of the market.
What are your thoughts as Switzerland’s largest bank UBS gives crypto advice for investors? And did you find it be a good idea not to invest in crypto directly? Let us know in the comments below. Also, if you found our content informative, do like and share it with your friends.
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