ASK AN EXPERT: Is investing in cryptocurrency and blockchain in Czechia a good idea?

With inflation rising and international markets on edge, many expats in Czechia are rethinking how they save or invest their money. For some, digital assets like bitcoin and blockchain funds are starting to look like more than just hype, but can crypto really be a viable option? 

Some see huge potential, others see big risks. So the question becomes: not if you should invest, but how to do it wisely.

It’s hard to know where to start on this divisive topic, so to help break it down, we spoke with Jan Stránský, Wealth Manager at finance firm and asset manager WOOD & Company. He provided insights on what’s changing in the blockchain world, and how curious investors in Czechia can get started.

A recent survey by cybersecurity firm Eset reveals that 45 percent of Czech respondents plan to buy crypto in the future, while 27 percent have already entered the market. Many feel that the returns from traditional savings accounts remain modest, while digital assets like Bitcoin have historically delivered higher yields over time.

Even for beginners, Cryptocurrency feels like a path towards profitability. Take long-term holding (you may have encountered the “HODLing” meme-worthy phrase online) as an example. Investors who bought bitcoin even a few years ago have often seen their investments multiply well beyond traditional investment methods.

Others are making money by staking coins like Ethereum, earning interest-like rewards simply by holding and locking their assets on a blockchain. 

For many however, blockchain still feels like a buzzword, something for techies or crypto traders deep in the trenches. Do you really need to buy Bitcoin or pick risky individual coins? New options, like professionally managed blockchain funds, offer a safer on-ramp.

“There are plenty of ways to buy cryptocurrencies directly or invest through international platforms,” says Stránský. “But at WOOD & Company, we’ve created something different: the Blockchain+ Fund.” Launched in late 2022, this fund has already delivered a strong 53 percent return, despite the ups and downs in the sector. 

How? It’s a “fund-of-funds,” meaning it doesn’t just focus on one type of asset. Instead, it gives investors access to a mix of global blockchain strategies in one package. 

The team behind it actively manages the fund, adjusting its exposure as markets rise and fall. It’s a particularly good option for people who want blockchain profits, but don’t want to deal with researching coins or timing the market.

The strongest sign that blockchain is maturing is its embrace by major institutions. One of the world’s largest asset managers, Fidelity Investments, recently launched a fund focused on digital assets, and BlackRock has expanded its offerings into decentralized finance.  

Should you wish to learn more about bitcoin and the blockchain, and their lucrative potential, or simply want a free consultation, contact Jan Stránský at jan.stransky@wood.cz.