Crypto robo-advisors offer affordable investment and digital asset management solutions, democratizing access to financial growth and independence.
However, finding the ideal robo-advisor involves considering various aspects, such as gaining a comprehensive understanding of your overall financial situation and ensuring consistent progress towards your goals, even amidst market volatility.
To simplify the process, we have conducted an impartial and extensive comparison of the top crypto robo-advisors.
Our evaluation methodology, which considers factors such as cash management, goal planning tools, fees, portfolio management, mobile functionality, socially responsible investing, portfolio construction, and more, ensures a comprehensive and unbiased assessment.
In this comprehensive guide, we will delve into the top 6 crypto robo-advisors for 2023. By leveraging advanced automation and sophisticated algorithms, these platforms aim to simplify your crypto investment journey and help you achieve your financial goals.
What is a Crypto Robo-Advisor?
A robo-advisor is a digital service offered by brokerage firms that utilizes advanced algorithms to manage investment portfolios based on an investor’s preferences.
By analyzing individual preferences and considering market dynamics, robo-advisors automatically suggest tailored investment portfolios, offering convenience and personalized investment solutions to investors.
A decade ago, robo-advisors emerged in the financial industry as a cost-effective alternative to human financial advisors, offering investment management services and financial guidance.
The popularity of robo-advisors has surged, with over 100 services now available, thanks to their affordability compared to personal investment advisors and automated asset management systems.
Robo-advisors have particularly attracted beginners, who appreciate their low minimum investment requirements and the ability to navigate the market without extensive knowledge.
As the appeal of robo-advisors continues to grow, it is advisable to consider utilizing them in conjunction with traditional financial advisors to cater to your investment goals effectively.
Best Crypto Robo-Advisors
- Makara by Betterment
- Wealthfront
- Cryptosimple
- Sarwa
- M1 Finance
- Shrimpy Advisory
1. Makara by Betterment
Makara, a crypto robo-advisor owned by Betterment, offers users the opportunity to invest in a diverse range of digital assets. By utilizing algorithms, Makara develops and manages crypto investment portfolios tailored to investors’ specific goals. The platform provides several crypto portfolios known as baskets, including:
1. Bitcoin Basket: Provides direct exposure to Bitcoin as a single-asset investment.
2. Ethereum Basket: Offers investors access to Ethereum as a single-asset investment.
3. Blue Chip Basket: Consists of an equal-weighted allocation to top cryptocurrencies such as Dogecoin, Shiba Inu, and Litecoin.
4. Decentralized Finance (DeFi) Basket: Features equal-weighted allocations to cryptocurrencies associated with emerging DeFi projects.
5. Inflation Hedge Basket: Combines equal-weighted allocations to tokenized gold and Bitcoin to provide protection against inflation.
6. Universe: A risk-weighted basket that includes the entire range of investment options available on Makara.
7. Metaverse Basket: Offers equal-weighted exposure to projects leveraging crypto to build the Metaverse ecosystem.
8. Web 3.0 Basket: Provides equal-weighted exposure to protocols focused on file storage, web browsing, video streaming, and more.
While Makara charges a relatively high annual advisory fee of 1.0% for multi-asset and actively managed baskets, single-asset baskets like Bitcoin and Ethereum are exempt from this fee.
2. Wealthfront
Wealthfront, a renowned name in the robo-advisor industry, has established itself as one of the top players in the market. While the platform was launched in 2008, it ventured into the realm of smart investing at a later stage.
With its comprehensive offering, Wealthfront has successfully attracted over 475,000 users worldwide, cementing its position as one of the most popular and widely utilized crypto robo-advisor platforms available today.
Users of the platform have the convenience of automatically investing in a diverse range of assets, including cryptocurrencies, by utilizing the Grayscale Bitcoin and Ethereum trusts. This strategic focus on ETFs aligns well with Wealthfront’s objective of delivering stable returns to its users.
In addition, Wealthfront offers a user-friendly interface that allows individuals to easily adjust the allocation of their portfolio through intuitive sliders, enhancing the platform’s customization capabilities.
Despite its affordability, with an annual fee of just 0.25%, Wealthfront does not compromise on functionality. It provides a wealth of features aimed at optimizing returns while mitigating risks, making it a compelling choice for investors.
3. Cryptosimple
CryptoSimple is an advanced and secure robo-advisor specifically designed for cryptocurrency investments. Its primary objective is to simplify the investing process while offering a wide range of powerful features.
The platform leverages smart and algorithmic strategies to optimize profits and enhance the overall investment experience.
CryptoSimple functions as a digital financial advisor, providing valuable guidance to investors. With a focus on beginners, the platform offers investment advice without using complex terminology or specialized terms.
This approach has resonated with a large user base, solidifying CryptoSimple’s position as one of the top crypto robo advisors available.
One notable feature of CryptoSimple is its transparent fee structure, which is determined based on the total value of the user’s account. Monthly fees range from 0.15% for holdings below $10,000 to 0.11% for holdings exceeding $100,000.
4. Sarwa
Sarwa, a well-established platform, has recently introduced its crypto robo-investing services. While Sarwa provides a diverse selection of stocks and ETFs, its crypto robo-advisor services are currently limited to the Grayscale Bitcoin Trust.
However, users retain the flexibility to purchase other crypto assets through the Sarwa platform.
Sarwa offers a range of features that are commonly found in top crypto robo-advisors. The platform provides targeted portfolios and automatically rebalances assets to optimize returns and manage risk, ensuring that the portfolio aligns with the investor’s chosen strategy.
While Sarwa currently only offers robo-advisor support for the Grayscale Bitcoin Trust, it stands out for its competitive pricing. Investors with balances below $2,500 can enjoy the first year of service for free, with subsequent years incurring a fee of 0.85%.
This makes Sarwa an attractive option for cost-conscious investors looking for a reliable crypto robo-advisor.
5. M1 Finance
When it comes to finding the best crypto robo advisor, M1 Crypto stands out as an excellent choice. The M1 platform, initially launched in 2015 with a focus on traditional assets like stocks, made a big splash in 2022 by expanding its services to include cryptocurrency investing.
This move attracted widespread attention from around the world, cementing M1’s reputation as a leading player in the crypto robo advisor space.
The M1 platform offers investors the flexibility to create customized portfolios, referred to as ‘Pies,’ that align with their specific strategies and preferences. This user-friendly feature allows individuals to tailor their investments according to their unique goals.
Additionally, M1 Crypto has exciting plans for the future, including the introduction of ‘Expert Crypto Pies,’ which will enable users to invest in carefully curated portfolios across various categories such as Web3 and large-cap assets.
With a continuous focus on enhancing its services, M1 Crypto has the potential to establish itself as the top crypto robo advisor in the industry. The platform’s usability is free, which further increases its appeal and makes it a desirable option for novice investors looking to enter the cryptocurrency market.
6. Shrimpy Advisory
Shrimpy Advisory is a recently launched crypto robo-advisor that provides individuals, regardless of their experience level, with the opportunity to invest in different sectors of the cryptocurrency market.
As a registered robo-advisor with the SEC, Shrimpy Advisory offers a user-friendly platform that allows people to enter the world of crypto even without prior knowledge of the industry.
With Shrimpy Advisory, investors can choose from a variety of crypto baskets that come with predetermined asset allocations. These baskets cover a wide range of cryptocurrencies, including well-established coins like Bitcoin and Ethereum, as well as newer and more innovative projects in the Metaverse, DeFi, and Layer 1 sectors.
Getting started with Shrimpy Advisory is simple. Users can create an account, provide information about their risk tolerance and investment timeline, deposit funds, and let Shrimpy Advisory handle the rest.
The platform continuously monitors the crypto market, adjusting baskets and allocations to align with market trends and shifts.
This means investors don’t have to constantly monitor their investments, as Shrimpy Advisory takes care of buying, selling, and conducting research on their behalf. This enables users to concentrate on the things that are most important to them while Shrimpy Advisory effectively manages their crypto investments.
Conclusion
Crypto robo-advisors are quickly adapting to the rising demand for cryptocurrencies. As more investors seek exposure to digital assets, robo-advisors are incorporating crypto portfolios and crypto-related ETFs into their offerings.
When choosing a crypto robo-advisor, it is essential to ensure they support the specific cryptocurrencies you are interested in. Verify whether they directly invest in the coins or provide exposure through ETFs and funds. Additionally, pay attention to the fees and minimum balance requirements associated with their services.
We hope our comprehensive overview of the best crypto robo-advisors has been informative. However, it’s important to note that cryptocurrency investments come with substantial risks, given their volatility. Diversifying your investments and assessing your risk tolerance are crucial to navigating this market. If you have any questions or need further assistance, please don’t hesitate to leave a comment below.
FAQ’s
Who is the #1 Most Trusted Crypto Expert?
Determining the most trusted crypto expert depends on various factors, including expertise, track record, and reputation within the industry. It is advisable to conduct thorough research, read expert reviews, and follow reputable crypto publications to identify the crypto expert that best aligns with your investment goals and values.
What is the Best Site for Crypto Advice?
While all the platforms we have mentioned are reputable options, they may have limitations when it comes to crypto-related functionalities. Reputable crypto news platforms, industry-leading publications, and forums are valuable sources for staying updated with the latest trends and insights. Additionally, seeking advice from trusted financial advisors specializing in cryptocurrencies can provide personalized guidance tailored to your specific needs.
Who is the Best Crypto Advisor on YouTube?
YouTube offers a wide range of crypto advisors with varying expertise and perspectives. Identifying the best crypto advisor on YouTube involves researching their content quality, industry reputation, and the applicability of their advice to your investment goals. It is recommended to explore multiple channels, watch informative videos, and consider the credibility and expertise of the advisors before making a decision.
Is there a Financial Advisor for Cryptocurrency?
Yes, there are financial advisors who specialize in cryptocurrencies. These advisors possess in-depth knowledge of the crypto market and can provide guidance tailored to your financial goals and risk tolerance. Engaging a reputable financial advisor for cryptocurrencies can offer valuable insights, help you navigate market fluctuations, and help you make informed investment decisions aligned with your financial objectives.
