In recent years, Robo-advisors have become quite popular among investors due to their low-cost management fees and their user-friendly platforms. Many companies have entered the market and are offering several automatically managed portfolios tailored to the investment profile of each investor.
Another common investing trend is “Cryptocurrencies”. You certainly followed the crypto boom in 2021, when it reached extremely high levels before declining sharply in the first half of 2022.
So, you might be wondering if there is any fintech out there that combines the features of Robo-advisors while giving you exposure to the crypto market. In other words, “Do Crypto Robo-advisors exist?” We’ve done this research for you, and yes, there are many Crypto Robo-Advisors that you might want to consider!
Wealthfront: A US Robo-advisor that offers the possibility to invest 10% in crypto
eToro: Best social investing platform. Copy crypto investors automatically or invest in a crypto portfolio through Smart Portfolios.
Makara: A 100%-crypto Robo-advisor owned by Betterment
Cryptosimple: A European Robo-advisor that will offer diversified crypto portfolio of stable and volatile coins
Sarwa: A Robo-advisor offering the possibility to get an indirect 5% exposure to crypto
M1 Finance: A US Robo-advisor providing access to crypto and blockchain ETFs
Shrimpy Advisory: A newly launched cryptocurrency robo-advisor that allows both beginners and experts to invest in various sectors of crypto
In a nutshell, Robo-advisors use automated tools and algorithms to help you invest your money. They recommend a particular investment portfolio based on your answers to a series of questions regarding your financial situation, investment goals, and risk perception. The recommended portfolio might include several asset classes and is managed automatically with no or minimal human intervention. The goal of a regular robo-advisor is to help people invest in the stock market with little effort and at low barriers to entry.
Similarly, a crypto Robo-advisor is an online service that allows anyone to invest in cryptocurrencies without having to know almost anything about the crypto market. Basically, users just have to put in the money and answer a series of questions, and the app will automatically create a crypto portfolio for the user based on his/her profile. No need to know anything about crypto wallets, exchanges, which cryptos to invest in, etc. It also helps users by periodically rebalancing and managing their crypto portfolio. Additionally, some crypto robo-advisors even lend the users’ cryptos to help them earn additional interest.
Best Crypto Robo-Advisors
As mentioned earlier, many Robo-advisors have started offering automated crypto portfolios or added some crypto exposure to their traditional automated portfolios. Others went even further by creating a 100%-crypto robo-advisor. In the following section, we mention some of those Robo-advisors, whether they fully or partly invest their portfolios in cryptocurrencies.
Makara is a crypto Robo-advisor, owned by Betterment, providing its users an opportunity to invest in a basket of digital assets. Makara uses algorithms to develop and manage crypto investment portfolios that are aligned with investors’ goals. It offers a large set of crypto portfolios called baskets:
Bitcoin Basket: A single-asset basket giving investors direct access to Bitcoin.
Ethereum Basket: A Single asset basket for investors who want access to Ethereum.
Blue Chip Basket: An equal-weighted allocation to a basket of the largest cryptocurrencies like Dogecoin, Shiba Inu, Litecoin, and others.
Decentralized Finance (DeFi) Basket: Equal-weight allocations of cryptocurrencies with young and evolving projects. It is a more speculative basket.
Inflation Hedge Basket: Equal-weight allocations between tokenized gold (a cryptocurrency representing physical gold reserves) and Bitcoin.
Universe: A risk-weighted basket that includes the entire investable universe of Makara.
Metaverse Basket: An equally-weighted basket providing exposure to projects that are using crypto to build the Metaverse ecosystem.
Web 3.0 Basket: An equally-weighted basket providing exposure to protocols working on file storage, web browsing, video streaming and more.
Makara charges a relatively high annual advisory fee of 1.0% on assets under management in multi-asset and actively managed baskets. However, single asset baskets such as Bitcoin and Ethereum baskets are not subject to any annual advisory fee.
eToro is a multi-asset brokerage and social trading platform that was created in 2007. It has grown in prominence as a leading online platform for social investing and trading in a wide range of financial assets such as equities, cryptocurrencies, commodities, FX, and others.
While eToro provides some social trading and portfolio management capabilities that are comparable to robo-advisors, it is important to remember that eToro's core functionality is centered on social trading, and its platform may not fully mimic the services provided by dedicated robo-advisory firms.
In crypto, the company offers robo-advice services through its “Smart Portfolios” which are designed to help investors in creating diversified crypto portfolios.
Wealthfront is a US-based Robo-advisor offering several investment portfolios based on your risk profile and financial goals. In addition to the traditional automated portfolios, Wealthfront provides an option to get exposure to cryptocurrencies. It gives users access to the Grayscale Bitcoin Trust (GBTC) and the Grayscale Ethereum Trust (ETHE). Those products work similarly to ETFs and give you exposure to the price movement of Bitcoin and Ethereum, respectively. You can make a maximum allocation to cryptocurrency of 10% of your total portfolio value.
You can only open an account at Wealthfront if you are a US resident, and the minimum balance to start investing is $500.
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.
Sarwa is a Robo-advisor available for international clients except for US citizens or those having single passports from Iran, North Korea, Northern Cyprus, and Yemen. It offers a wide range of automatically managed portfolios. If you choose to add crypto exposure to your portfolio, Sarwa will invest 5% of your portfolio in Greyscale Bitcoin Trust (GBTC), where you will get exposure to the price movement of Bitcoin.
You can open an account starting at $5, but to get access to the crypto portfolio, your balance needs to be greater than $2,500, and the fees range between 0.50% and 0.85% annually. You can check out our full Sarwa review.
M1 Finance is a famous fintech company known for its automated, commission-free investing portfolios. Although it does not offer direct access to cryptocurrencies, M1 Finance gives you access to crypto and blockchain ETFs, which include Amplify Transformational Data Sharing ETF (BLOK) and Siren Nasdaq NexGen Economy ETF (BLCN).
M1 Finance is a free Robo-advisor, but it is only available in the US.
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.
Crypto Robo-advisors are still new, but the growing popularity of cryptocurrencies is currently pushing many Robo-advisors to offer crypto portfolios or include crypto-related ETFs in their portfolio offerings. When searching for a suitable crypto Robo-advisor, examine whether they support the cryptocurrency you wish to get exposure to or invest in. Investigate whether they invest directly in the coins or provide you an indirect exposure through crypto-related ETFs and funds. We also recommend checking the fees charged and the minimum balance requirements.
Finally, we hope you’ve found our breakdown of the best crypto Robo-advisors useful. Keep in mind that investing in cryptocurrency involves substantial risk, and some cryptocurrencies are highly volatile, so make sure to diversify your investments and be aware of your ability to take risks. If you have any questions, feel free to leave a comment below.
A reminder that the above should not be construed as investment advice and should be considered information only. Investors should do their own research and due diligence about the services and opportunities best suited for their risk, returns, and impact strategy.