Professional Designations

What is the Certificate in Blockchain and Digital Assets (CBDA)?

By  Brian Thorp

Disclaimer: To make Wealthtender free for our readers, we earn money from advertisers, including financial professionals and firms that pay to be featured. This creates a natural conflict of interest when we favor their promotion over others. Wealthtender is not a client of these financial services providers. Learn how we operate with integrity to earn your trust.

The Certificate in Blockchain and Digital Assets (CBDA) is a designation awarded by the Digital Assets Council of Financial Professionals (DACFP) and the New York Institute of Finance (NYIF). The Certificate is earned by financial professionals who are interested in and passionate about learning about the growing fields of blockchain, cryptocurrencies, non-fungible tokens (NFTs), and other digital assets. 

With money pouring into cryptocurrencies such as Bitcoin and Ethereum in recent years and the growing excitement for NFTs, investors are searching for advisors who are experts in the digital asset space to uncover opportunities and mitigate risks. Let’s look at what this certificate is and how you may benefit from working with an advisor holding their CBDA certification.

What is the Certificate in Blockchain and Digital Assets (CBDA)?

The Certificate in Blockchain and Digital Assets is designed by advisors to help financial professionals incorporate emerging blockchain and cryptocurrency assets into their practices. Famed financial advisor Ric Edelman has championed the notion of increasing industry knowledge in this new ecosystem. There is a desperate need for more education and understanding of cryptocurrencies and blockchain technology in the wealth management community.

The CBDA seeks to provide that added layer of expertise so clients can feel comfortable bringing their digital currency assets to a trusted wealth manager.

Advisors who want to further their knowledge base into these emerging asset classes should consider pursuing the CBDA. Likewise, individual investors who have dabbled in digital currencies then scored significant profits should seek help from an advisor who has demonstrated expertise in this niche.

The Certificate in Blockchain and Digital Assets consists of two parts:

  • Part One: A six-hour course on understanding digital assets and the blockchain.
  • Part Two: A seven-hour course devoted to incorporating digital assets into an advisor’s investment management strategy.

During the curriculum, the candidate will learn the fundamentals of digital assets. Within the five modules of Part One, an introduction to the crypto asset class is taught. Next is a deep dive into the blockchain distributed ledger technology. The course teaches the differences among various tokens and coins. It also explains Second Layer Protocols and Decentralized Finance (DeFi).

Should You Hire a CBDA Certificate Holder?

A growing number of investors own cryptocurrencies. Others are simply curious about adding digital assets as long-term positions. According to the DACFP website, 78% of U.S. Investors say digital assets are appealing.

People from both of these groups should consider seeking the guidance of a financial advisor who specializes in cryptocurrencies and/or who holds the CBDA certificate. The Certificate suggests an advisor has the depth of knowledge of digital assets to help investors who:

  • Need to incorporate digital assets into their portfolio strategy: Part two of the curriculum is devoted to the asset management aspect of owning coins and tokens. Even individual investors with a firm grasp on digital assets might be unaware of how best to include the coins into an existing long-term financial plan. An advisor with the CBDA certificate can help.
  • Want to diversify away from traditional assets: Investors wanting to diversify away from traditional investments like stocks and bonds might have already purchased Bitcoin, Ether, or other digital assets. A wealth manager who has passed the program can help ensure the investor is positioned appropriately by analyzing correlation, risk management, pricing, and return potential from a holistic portfolio perspective.
  • Seek help regarding taxes: Module two within part two of the curriculum is focused on regulation and taxes. Many people day-trading crypto assets are unaware of taxation rules. An advisor with the CBDA can help reduce tax risk and ensure proper record-keeping and reporting.

Beyond the CBDA certification, you may also want to consider working with a financial advisor who has earned their Certified Digital Asset Advisor (CDAA) designation administered by PlannerDAO. Financial advisors who have earned either their CDAA designation or CBDA certificate demonstrate their commitment to understanding digital assets to help you invest wisely in cryptocurrencies and related products.

What Does it Take to Earn and Maintain the CBDA Certificate?

Earning and maintaining the CBDA certificate is straightforward: An advisor must pass both parts of the CBDA curriculum after purchasing the learning program on the DACFP or NYIF website. To complete the course and earn the Certificate, a candidate must:

  • Complete all ten modules as well as a bonus module (which explains the blockchain and digital assets to new and current clients)
  • Pass all module quizzes with a 70% score or above
  • Agree to the DACFP Code of Ethics
  • Complete both the pre-and post-course surveys

Unlike many other certificates and charters in the finance industry, there is no experience or continuing education requirement. A candidate must enroll, pass the exam, agree to a Code of Ethics, and complete surveys.

The DACFP outlines the time commitment a candidate should expect. The curriculum is more than 13 hours, broken into two parts of five modules each, plus the bonus module mentioned earlier. The program is self-paced, and there is no time limit, but it expires 12 months after a student begins the course.

After finishing the program, an advisor earns continuing education credits toward other certification requirements, including the CIMA, CPWA, CIMC, and RMA.

How To Find A Financial Advisor Who Has Earned their Certificate in Blockchain and Digital Assets (CBDA)

In the coming months, you’ll find a growing number of financial advisors featured on Wealthtender who have earned their Certificate in Blockchain and Digital Assets (CBDA).  

If you have an interest in adding digital assets to your portfolio, consider these tips and questions to ask a financial advisor to learn if they understand the opportunities and risks of investing in cryptocurrencies to help you make more informed decisions with your money.

FAQs

How Can I Confirm the Financial Professional I’m Working with Holds the CBDA?

Send an email to info@dacfp.com or call the DACFP at (703) 831-2240.

What if I Have a Complaint About the CBDA Certificate Holder I’m Working With?

Send an email to info@dacfp.com or call the DACFP at (703) 831-2240.

I’m a financial advisor with a Certificate in Blockchain and Digital Assets (CBDA) interested in joining Wealthtender. How should I get started?

Thanks for your interest in joining Wealthtender. We’re excited to help financial advisors with a passion for blockchain and digital assets connect with investors interested in this growing alternative asset space. You can learn more about Wealthtender by visiting this page: Modern Advisor Marketing ™ with Wealthtender

Where can I learn more about other professional designations held by financial advisors and coaches?

Refer to this list of popular financial certifications prepared by Wealthtender to help you learn more about each designation. You’ll find a brief description of each certification, plus links to in-depth articles if you want to learn more about a particular designation.


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About the Author

Brian Thorp

Brian is CEO and founder of Wealthtender. He and his wife live in Texas, enjoying the diversity of Houston and the vibrancy of Austin.

With over 25 years in the financial services industry, Brian is applying his experience and passion at Wealthtender to help more people enjoy life with less money stress.

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Disclaimer: To make Wealthtender free for our readers, we earn money from advertisers, including financial professionals and firms that pay to be featured. This creates a natural conflict of interest when we favor their promotion over others. Wealthtender is not a client of these financial services providers. Learn how we operate with integrity to earn your trust.