Arthur Salzer on Effective Due Diligence in Cryptocurrency Investments

Arthur Salzer, a finance advisor, emphasises the necessity of rigorous research and strong connections in the cryptocurrency due diligence process. By focusing on regulated ETFs, he has increased client Bitcoin allocations over the years amidst ongoing fraud risks. His industry relationships enhance secure investment options, while Canadian regulatory advancements support more transparent and informed investing compared to other markets.

Arthur Salzer, a financial advisor, emphasises the importance of rigorous research and fostering connections in the cryptocurrency due diligence process. His initial encounter with cryptocurrency in 2017 prompted him to conduct approximately 2,000 hours of research and engage with industry experts, ultimately leading to a belief in the strong potential of Bitcoin despite inherent risks.

By confining investments to highly regulated exchange-traded funds (ETFs) like the Fidelity ETF, Salzer has successfully provided clients with consistent returns. In 2019, Bitcoin allocations in client portfolios ranged from 2.5% to 7.5%, which has increased to 5% to 30% today, showcasing rising confidence in this digital asset.

Despite improved perceptions, Salzer warns of ongoing fraud risks in the cryptocurrency space. To protect clients, he avoids the venture exchange, comparing it to high-risk mining activities, as it often harbours unreliable ventures. He cautions against speculative stocks that exhibit high fraud probabilities, effectively opting for more stable investments.

Salzer’s extensive industry connections position Northland well in providing secure and profitable Bitcoin options. His years of research and relationships with leading figures in the Bitcoin sector enable a deeper understanding beyond superficial headlines. This informed approach distinguishes Northland from typical brokerage practices.

Salzer highlights Canadian crypto regulation as a pivotal factor that enhances due diligence. The launch of the world’s first Bitcoin ETF in Canada demonstrates the region’s regulatory foresight and commitment to transparency, which supports a more informed investment environment compared to the private markets.

Overall, Salzer’s strategy blends thorough research, cautious investment, and a strong professional network, essential elements in navigating the evolving landscape of cryptocurrency.