Cryptocurrency investing has moved far beyond the fringe and is now a critical consideration in many Australians’ financial portfolios. Whether you’ve just dipped your toes into digital assets like Bitcoin and Ethereum or are considering a serious allocation to crypto, one of the smartest moves you can make is hiring a crypto financial adviser.
But not all advisers are equal—especially in the crypto space. With a growing number of unlicensed “experts” offering questionable advice online, it’s essential to know exactly what to ask a crypto adviser before trusting them with your financial future.
In this article, we’ll walk you through the top questions to ask a crypto financial adviser, what red flags to watch out for, and how to evaluate whether your adviser is truly equipped to help you navigate the fast-evolving world of digital assets.
Preparing for Your Crypto Adviser Meeting
Understand Your Own Financial Goals First
Before you can evaluate a crypto adviser, you need to clarify your own goals. Consider:
- Are you investing in crypto for long-term wealth or short-term gains?
- Are you looking to include crypto in your Self-Managed Super Fund (SMSF)?
- Do you want a tax-effective structure for your digital asset holdings?
- How much of your portfolio are you comfortable allocating to crypto?
Having a clear sense of your objectives will make it easier to gauge whether the adviser’s approach aligns with your needs.
Why Vetting Matters More Than Ever
Crypto is an unregulated Wild West in many parts of the world, but in Australia, financial advice is strictly regulated. Working with an unlicensed or inexperienced adviser could expose you to serious risks:
- Non-compliance with Australian Taxation Office (ATO) rules
- Investing in unsuitable or scam projects
- Lack of consumer protection if things go wrong
That’s why asking the right questions upfront is not just smart—it’s essential.
Key Questions to Ask a Crypto Financial Adviser
1. Are You Licensed to Give Crypto Financial Advice in Australia?
This is the most important question you can ask.
Only advisers who hold an Australian Financial Services Licence (AFSL) or are authorised representatives of an AFSL holder can legally provide financial advice in Australia.
Ask them:
- Are you licensed under an AFSL?
- What is your AFSL or authorised representative number?
- Can I find your name on the ASIC Financial Advisers Register?
If the answer is no—or they dodge the question—walk away.
2. What Experience Do You Have With Cryptocurrency and Digital Assets?
You want someone who doesn’t just understand traditional financial planning but also has hands-on experience with:
- Buying, holding, and transferring crypto assets
- DeFi platforms and staking
- Stablecoins and NFTs
- Cold wallets, exchanges, and blockchain basics
Ask for examples of how they’ve helped other clients:
- Have they assisted clients with crypto tax planning?
- Do they understand the unique risks and opportunities of digital assets?
- Can they speak confidently about crypto market trends?
3. Do You Work With SMSFs or Trusts for Crypto Investing?
Many Australians are exploring crypto exposure via their Self-Managed Super Funds. But not all advisers are qualified to:
- Structure crypto assets within an SMSF
- Understand the compliance, custodianship, and audit requirements
- Work with a trustee to stay within ATO and ASIC guidelines
If SMSFs or trusts are part of your plan, ask:
- Have you structured crypto in an SMSF before?
- What custodial solutions do you recommend for compliance?
- Can you help liaise with auditors and accountants?
4. How Do You Stay Up-to-Date on Crypto Trends and Regulations?
The crypto industry changes rapidly. Advisers must stay current on:
- Market movements
- New tokens and protocols
- ATO and ASIC rulings
- Global regulatory developments
Ask them:
- What industry publications do you follow?
- Do you attend any blockchain or crypto finance events?
- Are you part of any crypto adviser networks or communities?
An adviser who treats crypto as a passing trend is unlikely to offer strategic, long-term value.
5. What’s Your Approach to Risk Management and Diversification?
Crypto is inherently volatile. Your adviser should:
- Assess your personal risk tolerance
- Recommend a diversified portfolio
- Avoid overexposure to high-risk or speculative coins
- Explain rebalancing strategies and exit plans
Key questions include:
- How much of my portfolio would you recommend allocating to crypto?
- Do you follow any model portfolios?
- What’s your approach to risk-adjusted returns?
6. Can You Help With Tax Implications of Crypto?
While not all advisers are tax agents, a good one should:
- Understand crypto capital gains tax (CGT) rules
- Help track cost basis and calculate gains/losses
- Coordinate with your accountant for tax optimisation
- Advise on tax-effective holding structures
Ask:
- Do you assist with crypto CGT reporting?
- Can you integrate tax strategies into my portfolio?
- Do you work alongside a crypto-savvy tax agent?
7. How Are You Compensated for Your Services?
Fee transparency is critical to avoid conflicts of interest.
Understand:
- Is it fee-for-service or commission-based?
- Do they receive compensation for recommending certain platforms or tokens?
- Are they incentivised to upsell?
Ask:
- What is your fee structure?
- Do you receive any commissions or kickbacks?
- Is your advice product-agnostic?
8. Do You Hold Any Crypto-Specific Certifications or Training?
The world of digital assets requires ongoing education. Look for:
- Certified Digital Asset Adviser (CDAA)
- Cryptocurrency courses or blockchain finance qualifications
- Ongoing CPD focused on digital assets
Ask:
- Have you completed any crypto-specific training?
- What continuing education do you do on digital assets?
- Can you provide evidence of any blockchain or DeFi expertise?
Red Flags to Watch Out For When Evaluating a Crypto Adviser
1. Vague or Evasive About Licensing
Anyone who refuses to provide their AFSL number or can’t be found on the ASIC register is a major red flag.
2. Overpromises and Guarantees
Beware of advisers who:
- Guarantee returns
- Hype specific coins or time-sensitive opportunities
- Promise “safe” staking returns or crypto arbitrage
No one can predict crypto markets.
3. Pushes Specific Tokens or Platforms
If an adviser is aggressively promoting a particular exchange, coin, or DeFi platform, ask:
- Are they financially tied to it?
- Are they recommending it based on merit—or incentives?
4. No Traditional Financial Planning Background
Crypto shouldn’t exist in a vacuum. Your adviser should also:
- Understand your superannuation
- Manage tax structuring
- Help with estate planning, trusts, and long-term wealth
How to Use the Answers to Make Your Decision
Create a Crypto Adviser Scorecard
List key evaluation areas:
| Evaluation Criteria | Score (1–5) | Notes |
|---|---|---|
| AFSL Licensing & Compliance | ||
| Crypto Experience & Case Studies | ||
| Tax & SMSF Knowledge | ||
| Risk Strategy & Diversification | ||
| Fee Transparency | ||
| Communication Style & Trust |
Compare advisers to identify the best match for your needs.
Use Finistry to Vet Crypto Advisers
Finistry is Australia’s dedicated platform to find and evaluate licensed financial professionals.
On Finistry.com.au, you can:
- ✅ Search for crypto financial advisers by location or expertise
- ✅ Verify AFSL credentials
- ✅ View crypto-specific services offered
- ✅ Read verified reviews and testimonials
- ✅ Contact advisers directly
FAQs
What should I ask a financial adviser about crypto?
Ask about licensing, crypto investing experience, SMSF structuring, risk strategy, tax integration, and fees. Make sure they are authorised under an AFSL.
How do I know if my crypto adviser is legitimate?
Check the ASIC Financial Advisers Register, verify their AFSL number, and confirm they offer tailored crypto advice on Finistry or similar directories.
Do financial advisers help with crypto taxes?
Yes, many collaborate with accountants to help clients minimise capital gains tax, manage staking income, and track holdings accurately.
Can I use a regular financial planner for crypto?
Only if they are up-to-date on crypto markets, understand tax and compliance rules, and are authorised to advise on digital assets.
Should I use a crypto coach instead?
Crypto coaches are often unregulated. For personalised investment advice, you must use a licensed financial adviser under ASIC’s framework.
Final Thoughts
Crypto can be an exciting and valuable addition to your wealth-building strategy—but only when handled with care, planning, and expertise.
By asking these questions before hiring a crypto adviser, you’ll:
- Protect yourself from misinformation
- Align your strategy with your personal goals
- Ensure compliance with ASIC and ATO regulations
🔍 Need help finding a trusted crypto adviser? Browse licensed professionals at Finistry.com.au—Australia’s dedicated directory for financial professionals in the digital asset space.
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