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Date Published: 11/02/2022

Blacktower shares 3 steps to turn your cryptocurrency profits into an investment for your future

Many people have already found the benefits of making money with cryptocurrencies, but what should you do with that wealth once you’ve got it? Blacktower answers all your questions…

By Keith Littlewood, Blacktower International Financial Advisor

Despite being a concept for several decades, most of us have only become familiar with the term ‘cryptocurrency’ in recent years. The notion of an online-only currency that is not physical and tangible can be difficult to grasp, but for some, the profits of trading in cryptocurrency are very real, and have the potential to be life changing.

A survey of 750 successful investors revealed that 47% of millennial millionaires have at least 25% of their wealth invested in Cryptocurrencies, and data suggests that there might be as many as 100,000 bitcoin millionaires at this moment in time.

Bitcoin is by far the most popular and valuable cryptocurrency, with the value of one bitcoin surpassing the value of an ounce of gold for the first time on March 3 2017. Considering bitcoin was created only 8 years prior to that, the inflation in value of the cryptocurrency was unprecedented, making the lucky few who had seen the opportunity to invest very wealthy in the process.

However, unlike the trading tycoons of previous generations, a lot of these individuals had never traded before, were not used to having to manage that amount of wealth and were unsure what to do next. Blacktower Financial Management has put together some advice for those who might find themselves in a similar situation.

1. Don’t spend it all at once

With the astronomical appreciation in some cryptocurrencies, those who invested at the right time can find themselves in the possession of a lot of money, sometimes without experience in investment and wealth management. In this scenario, it can be tempting to buy a fancy car, book numerous all-inclusive luxury holidays and not impose any kind of restrictions on your spending.

It goes without saying that this is not the way to benefit from a large lump sum in the long-term; in order to contribute to your future financial security, it is imperative to resist the temptation to purchase luxury goods that often depreciate quickly in value, and instead pause, think and consider your options.

2. Pay off any existing debt

The first thing you should do when coming into any considerable amount of money is to pay off any outstanding debt; the interest rates on credit repayments (sometimes as high as 10 or 15%) will mean you will pay more the longer you leave it, costing you more money in the long run.

Consolidate any loans or credit card debt and pay off the highest interest debt first. Not only will this put you in a far better position financially, but it should also drastically reduce your stress levels.

3. Invest – and seek advice

Investing doesn’t only help you grow your wealth, but it can also help to make it harder to spend. Investing money often means it is not immediately accessible, typically taking between 3-7 business days for withdrawals to be processed. This reduces the likelihood of impulse purchases, but is also the reason why you should not invest all of your savings, leaving some in an easy-to-access emergency fund.

The right investment strategy differs from person to person, depending on personal circumstance and lump sum amount. This can be an unsettling process as there are many different investment options available, and investment, by its very nature, is not without risk. Seeking financial advice is the best way to ensure you are making the best decision with the options that are available to you, and a financial adviser can also guide you with any tax payments or queries.

If you would like to contact us to arrange a complimentary no obligation consultation. The local Blacktower office address is: 120 Avenida Dr. Artero Guirao 2C. San Pedro Del Pinatar, 30740, Murcia, Spain. Our office suite is easy to find on the main N332 through road of San Pedro del Pinatar with easy parking.

If you want more information or wish to make an appointment to discuss your own situation then call 657684094 or email [email protected]

Disclaimer: This communication is based on our understanding of current legislation and practices which is subject to change and is not intended to constitute, and should not be construed as, investment advice, investment recommendations or investment research. You should seek advice from a professional adviser before embarking on any financial planning activity.

Blacktower Financial Management (International) Limited is licensed by the Gibraltar Financial Services Commission. Licence 03647. Blacktower Financial Management Limited is authorised and regulated by the Financial Conduct Authority in the UK and is registered with both the DGS and CNMV in Spain. Blacktower Insurance Agents and Advisors Limited is authorised and regulated by the Cyprus Insurance Companies Control Service (ICCS) under Licence number 5101. Regulation is limited to Insurance Mediation activities within the European Economic Area. Blacktower Financial Management (Cyprus) Limited is licensed and regulated by the Cyprus Securities &Exchange Commission (“CySEC”) with Licence number 386/20 for the investment services of InvestmentAdvice and Receipt & Transmission.

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Financial Advice Issues for Expats in Spain

BLACKTOWER Financial Management I have been a Qualified Financial Adviser for almost 35 years now. 25 years in the UK for major institutions such as Natwest, RBS and Royal London. I have been in Spain giving expats financial advice now for 10 years and it is quite remarkable the different approaches as well as advice that is required for an expat now living in Spain. Blacktower is a company that has specialised in providing the best solutions for its clients living outside the UK for 30 years also.

The currency issue is always high on the agenda and a discussion for the long term future has to be taken onto account. Questions like What will happen if one partner dies? Will the other remain in Spain? What about other family members? What Inheritance tax provisions do you have in place? The list goes on and on.

BLACKTOWER Financial Management Existing portfolio’s and investments that were the mainstay of portfolios in the UK may now be obsolete. An example of this is quite often tax efficient products in the UK like ISA’s and previously held TESSA’s PEP’s actually have low growth rates and provide no tax advantage to a Spanish fiscal resident.

Existing Pension holdings either paid by the state or private pensions built up through working lifetimes are topics that have to be covered. Many expats have lots of small pensions from many ex employers and can be confused by the communications and administration in dealing with them. At Blacktower we specialise in advising on how to consolidate and bring all these pensions together in one place.

BLACKTOWER Financial Management Bank accounts and investments in Spain always bring up lots of questions too. Quite often the small print associated with financial products in Spain is in Spanish this can make it very difficult even if you have a good grasp of the language. Understanding Jargon in English is sometime difficult enough. I provide clear easy to understand letters and documents in English so that you fully understand any terms and conditions before making a decision.

Advice on tax efficiency is just as important and offering good returns. There are products available exclusively for Spanish expats that can provide invaluable benefits. Having a good base knowledge of the tax implications both now and in the future is an essential ingredient to making a sound decision.

BLACKTOWER Financial Management I will complete a thorough factfind, ask you the right questions, establish your individual needs, attitude to risk and capacity for loss and desired returns before providing you with a full written report of advice and my recommendations in plain English. You will then have time to read and consider all the information before contacting me with how you wish to proceed.

Click for more information about Keith Littlewood.

The above information was correct at the time of preparation and does not constitute investment advice and you should seek advice from a professional adviser before embarking on any financial planning activity.

Blacktower Financial Management (Int) Ltd is licensed in Gibraltar by the Financial Services Commission (FSC) and is registered with both the DGS and CNMV in Spain