One large Swiss bank decided to change the classical approach of banks towards cryptocurrencies and offers a guidance about how to invest in them.
Let’s take a look at why UBS decided to take such a step.
Guidance by a bank
The bank recently published a report in which it answers questions from clients who ask whether they should invest in cryptocurrencies and whether Bitcoin can be used to diversify their portfolio. However, the report says UBS is skeptical of real-world use and cannot rule out price increases. At the same time, they are aware that in the event of a mistake, one can lose everything.
UBS admits that cryptocurrency prices may continue to rise, but admits that there is also a possibility, that the price of a certain cryptocurrency could fall to zero. Bitcoin is also attractive for investors mainly due to its low correlation with other assets, such as bonds or stocks.
However, portfolio diversification is a big topic. For investors, this is a strong argument when deciding if they want to enter cryptocurrencies. Many investors, both retail and institutional, now buy cryptocurrencies for the same reason like other people – as a hedge against inflation. Other reasons for investing include the attractiveness of the asset and FOMO.
Where to start
It is interesting to see that a large Swiss bank is trying to provide guidance for investors. However, you can still sense from the cautious tone of the guidance that it is not entirely desirable for the clients of the bank to invest in cryptocurrencies. Investing in cryptocurrencies requires a lot of studying and also a lot of caution. If you want to learn more about the world of cryptocurrencies, you can start with our trading course that will guide you through the world of digital currencies and give you real advice.