As more investors look for specialized crypto financial advisors to help manage their investments, we've compiled a list of reputable crypto financial advisors and robo-advisors that investors can consider.
Although we will mention crypto robo-advisors, the primary focus will be on financial advisors, as they are the main interest of investors.
DAIM: Best for US investors. A US financial advisor dedicated exclusively to Bitcoin and Digital assets, offering customized investment plans and ongoing support. Invest with DAIM here.
Cryptosimple: Best for European investors. A crypto financial advisor for European investors, offering personalized advice and portfolio management.
Shrimpy Advisory: Crypto robo-advisor for US investors. A US-based crypto robo-advisor and financial advisor providing professional portfolio management and personalized guidance.
What is a crypto financial advisor?
A crypto financial advisor is a financial professional who specializes in cryptocurrencies and digital assets. These advisors have extensive knowledge of the cryptocurrency market, blockchain technology, and the associated investment opportunities and risks.
They provide guidance and assistance to clients looking to invest in or manage their crypto holdings. Crypto financial advisors help create tailored investment strategies based on the client's financial goals, risk tolerance, and investment horizon. Their services may include portfolio management, risk assessment, tax planning, and ongoing support to help clients navigate the complex and volatile world of cryptocurrencies.
According to Mike Soroudi, CFA, DAIM differentiates itself from robo-advisors or self-directed options by offering personalized human assistance in developing and executing investment plans for digital assets. They primarily serve US citizens and residents eligible to invest in regulated US accounts, with many clients using their IRAs to invest through DAIM.
DAIM's services mirror those of traditional financial advisors, assessing clients' risk tolerance, liquidity needs, and overall investing goals before creating a tailored allocation and managing the portfolio on their behalf. Most portfolios comprise mainly Bitcoin, with some Ethereum. They charge an annual management fee billed quarterly and do not have a minimum investment requirement.
DAIM also offers the service of crypto 401ks (with mutual funds and bitcoin).
CryptoSimple is a European Robo-advisor that creates a diversified crypto portfolio based on your financial goals and risk tolerance. It is currently under BETA testing (not live yet), with plans to launch in June 2022. It will offer three portfolios:
Conservative: A portfolio biased toward stable coins (90%), while only 10% is invested in volatile coins.
Balanced: A portfolio of stable cryptocurrencies (65%) and volatile cryptocurrencies (35%), designed for those seeking a balance of risk and reward.
Growth: A portfolio with relatively higher than average risk in order to provide greater potential gains. 65% of the portfolio is allocated to volatile assets, while only 35% is allocated to stable ones.
Shrimpy Advisory is a newly launched cryptocurrency robo-advisor that allows both beginners and experts to invest in various sectors of crypto. As a registered robo-advisor with the SEC, Shrimpy Advisory offers people an opportunity to get started in crypto without previous knowledge of the industry.
Shrimpy Advisory offers various crypto baskets with preset allocations of assets, ranging from blue chip coins like Bitcoin and Ethereum to some of the newer and more unique projects in the Metaverse, DeFi, Layer 1, and more.
Simply set up your account, answer a few questions about your risk tolerance and investment timeline, and deposit funds and Shrimpy Advisory does all the rest. They constantly monitor the crypto industry and update baskets and allocations as needed to match market shifts and trends. No need to monitor your investments day-to-day, as Shrimpy does all of the buying, selling, and research so you can relax and enjoy the things that matter most to you.
Pros and Cons of Hiring a Crypto Financial Advisor:
Hiring a crypto financial advisor can provide several benefits, including expert knowledge and guidance, personalized investment strategies, and risk management. These professionals should have a deep understanding of the cryptocurrency market and its underlying technology, enabling them to identify promising investment opportunities and avoid potential pitfalls.
They can tailor investment strategies to your financial goals and risk tolerance, while also providing ongoing support and portfolio management. This can save you time and reduce stress by allowing you to focus on other aspects of your life.
On the other hand, there are some drawbacks to hiring a crypto financial advisor. The primary concern for many investors is the cost, as financial advisors typically charge management fees, which can eat into your investment returns.
Additionally, the crypto market is still relatively young and constantly evolving, making it difficult even for experts to accurately predict future trends. This means that despite their expertise, crypto financial advisors are not infallible and can still make mistakes or misjudge the market.
Questions to Ask a Crypto Financial Advisor:
When considering hiring a crypto financial advisor, it is crucial to ask the right questions to ensure they are the best fit for your needs. Some key questions include:
What is your experience with cryptocurrency investments?
What are your qualifications and credentials?
What is your investment philosophy and strategy?
How do you stay updated on the latest crypto market trends and developments?
How do you assess and manage risk in the crypto market?
What is your fee structure, and are there any additional costs?
How will you communicate with me, and how often can I expect updates?
Regulation in Crypto Financial Advisors
Regulation in the realm of crypto financial advisors is still developing, as the cryptocurrency market itself is relatively new and constantly evolving. In many countries, financial advisors are required to obtain licenses and adhere to specific regulations to ensure they provide competent and ethical services. However, the regulatory landscape for crypto-specific financial advisors varies significantly between jurisdictions. As a result, it is essential to verify the credentials and regulatory compliance of any potential crypto financial advisor to ensure they are operating within the legal framework and providing a professional service.
Finding the right crypto financial advisor can be crucial for investors seeking to navigate the volatile and complex world of digital assets. Cryptosimple, Shrimpy Advisory, and DAIM are just a few examples of reputable advisors who can help manage your investments. By asking the right questions and understanding the value an advisor can bring, investors can make well-informed decisions and optimize their crypto investment strategies.