In this interview, we sit down with Bryan Courchesne, a crypto investment expert and founder of DAIM.io. Bryan Courchesne shares insights into their journey from equity derivatives to crypto investing and the reasons behind their interest in cryptocurrencies. They discuss the benefits of including Bitcoin in retirement plans, the advantages of having a professional handle the purchasing and asset management process, and their approach to diversification in the volatile crypto market. Bryan Courchesne also touches on successful investment strategies, the long-term potential of cryptocurrencies, the value and risks of generating interest on crypto investments, their partnership with Gemini, and navigating tax obligations and compliance in the ever-changing regulatory environment. Lastly, Bryan Courchesne offers advice for those new to cryptocurrencies and looking to enter the world of crypto investing.
Bankless Times: When and why did you first become interested in crypto investment? What led you to move from equity derivatives to a career focused on crypto investing?
Bryan Courchesne: 2013, I wanted to diversify my portfolio further. I had stocks and real estate, but wanted something uncorrelated and with a fixed supply. After a year of watching Bitcoin I invested in October 2014. From then on I had sophisticated investors come to me with questions about crypto. I could tell that a licensed asset manager is what was needed to help people invest in digital assets. In mid 2017 I decided to take a giant step and build DAIM.io.
Digital assets have exhibited volatility that is far greater than traditional assets. It is hard for investors to handle the emotional side of investing in traditional markets and even moreso in crypto. Our main benefit to clients is having a patient approach to investing in the space. We focus on a few select projects and hold through cycles. We usually get clients because they tried to invest on their own but got burned because they bought into an altcoin right before it plunged in value.
BT: In your opinion, why is Bitcoin worth considering as part of a retirement plan?
BC: Retirement plans are long-term investment vehicles that will perform best over a long time horizon with proper diversification. Bitcoin has established itself as a macro asset and therefore it would benefit individuals to have exposure to it much like they would have exposure to stocks, bonds, commodities, etc in a traditional diversified portfolio.
BT: How do you feel your clients benefit from having the purchasing and asset management process handled for them?
BC: Digital assets have exhibited volatility that is far greater than traditional assets. It is hard for investors to handle the emotional side of investing in traditional markets and even moreso in crypto. Our main benefit to clients is having a patient approach to investing in the space. We focus on a few select projects and hold through cycles. We usually get clients because they tried to invest on their own but got burned because they bought into an altcoin right before it plunged in value. FOMO is a real issue when you see projects that routinely do 10-100x in a matter of months or even weeks. But chances are by the time you realize a project has appreciated immensely it is too late make any meaningful profit from investing in it. Chances are you will lose money.
Just buy Bitcoin!
BT: How do you approach diversification when it comes to cryptocurrency investments?
BC: Diversification is a little counterintuitive in crypto. You want projects that have a diversified network and user base, so it doesnt make sense to add a bunch of altcoin projects in the name of diversification. Right now there are two blue chip projects in crypto. Bitcoin and Ethereum. A portfolio should start with and be focused around those. You can add some other projects that you like in small percentages but until the space matures do not expect great results.
BT: Can you discuss any successful investment strategies or recommendations you have made in the past?
BC: Just buy Bitcoin!
BT: Do you see cryptocurrencies as a long-term investment? If so, what is it about crypto that leads you to believe that it will hold its value in the future?
BC: We believe that Bitcoin has established itself as a macro asset and shown itself to be a superior store of value to gold. We think that adoption has reached a point where Bitcoin is here to stay. We also think that people are seeing the cracks in the global monetary system and as those issues persist and grow, Bitcoin will become an even more attractive alternative.
BT: Do you see any value or risk in the various ways of generating interest on crypto investments, such as staking, lending, or crypto savings accounts?
BC: Staking has value as it encourages participation in networks and shows utility. You need to pay attention to the staking reward as high rewards usually mean an inflating token supply that will hinder investment growth over the long term.
BT: Could you discuss what led you to partner with Gemini and how DAIM benefits from this partnership?
BC: Gemini is qualified custodian which is necessary for us acting as an RIA. We can custody client assets with them and furthermore we feel comfortable with the people and procedures they have in place to make sure our clients are serviced in the best way possible.
If you are starting out, it is best to do it with a professional. Once you get used to the assets and can deal with the volatility you can manage your own portfolio if you feel necessary. But to begin with there will be a steep learning curve and lots of questions so it would be best to partner with a professional.
BT: Many people find it difficult to understand the tax rules around cryptocurrencies. How have you dealt with this issue, and do you have any advice for those who are worried about their tax obligations?
BC: Tax rules are actually pretty straightforward, however it can get confusing because you can swap cryptos directly for eachother and you can move freely between centralized and decentralized exchanges. Any swap or sale to cash is a disposition and you must calculate the equivalent dollar gain or loss associated with it. We recommend sticking with one exchange to do all trading and if possible use USD or BTC as a trading pair to trade. The fewer sources and trading pairs used the easier it is to track your activity and stay on top of taxes.
BT: Have you found it difficult to navigate compliance given the changing regulatory environment in the US? Do you think crypto regulations need to change, and how?
BC: We haven’t had issues. Since the formation of the company we have taken a long term approach and run the company with securities laws in mind, even though digital assets aren’t securities. We feel that we will be in compliance with whatever future laws and regulations are created. Crypto regulations mostly need clarity. However they are going to be treated needs to be decided on and put into writing in a clear and understandable manner. Transparency will allow the space to evolve in a healthy manner that is in the best interest of all participants.
BT: Do you think crypto investing is accessible for the uninitiated? What advice would you give to someone who is new to cryptocurrencies and wants to start investing?
BC: If you are starting out, it is best to do it with a professional. Once you get used to the assets and can deal with the volatility you can manage your own portfolio if you feel necessary. But to begin with there will be a steep learning curve and lots of questions so it would be best to partner with a professional.
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