Best Crypto Robo Advisors: From Bitcoin Bots to Automated Crypto Investing
Crypto robo advisors like Wealthfront, Titan, and Hedonova offer diversified crypto funds, while crypto bots like Coinrule let you automate a more active trading strategy.
Published Dec 8, 2021•Updated Jan 6, 2022
Robo advisors are wildly popular with younger generations, which isn't surprising when you consider that both millennials and Gen Z prefer investing that's user-friendly, mobile, and fee-free.
Another one of the most common investing trends with younger people is cryptocurrency. It's becoming the norm for even brand new investors to incorporate crypto into their investment portfolios.
So it was only a matter of time before investment apps started putting two and two together and offering a crypto robo advisor. While still a pretty new service, there are now a number of apps that offer an automated and easy way to invest in cryptocurrency. Here's what you need to know about the best crypto robo advisors.
What is a crypto robo advisor?
What is a crypto robo advisor?
You may have heard of robo advisors, which allow you to "set it and forget it" with your stock market investments through the use of automation tools and algorithms. A crypto robo advisor is an app that lets you automate the process of investing in crypto.
There are two different types of crypto robo advisors: regular robo advisors that support crypto investments and crypto trading bots that automate a more active crypto investment strategy for you.
When it comes to regular robo advisors, a number of them now offer the option to invest in crypto in ways that are often easier or more automated than using a crypto exchange. As for crypto trading bots, these applications give you the option to set up and automate a series of trading rules. This is more geared toward folks who are looking to actively trade crypto, whereas buying crypto through a robo advisor is better for investors who want to hold for the long-term.
What's the best crypto robo advisor?
What's the best crypto robo advisor?
When looking for the best crypto robo advisor, you'll want to consider whether they support the crypto you want to invest in and whether their crypto robo advisor product lines up with your goals for investing in crypto. Other factors to consider include fees, minimum investment requirements, and the types of accounts they offer. With that in mind, here are some of the best crypto robo advisors for 2022.
Wealthfront is a traditional robo advisor that offers the option to invest in Bitcoin and Ethereum with their unique unit investment trusts (UIT). The app offers a Bitcoin UIT (GBTC) and an Ethereum UIT (ETHE). This product is similar to ETFs in that they comprise a basket of different coins, so you're not investing in individual coins. You can easily buy shares of these UITs on Wealthfront the same way you'd buy shares in an ETF.
This has the benefit of offering an easy and automated way to invest in a diversified portfolio of cryptocurrencies, making it one of the best crypto robo advisors for beginners. However, you can't own individual crypto coins through Wealthfront, nor can you purchase crypto and add it to your wallet. The crypto you invest in through Wealthfront is held and managed by Grayscale, the digital currency investment company that created Wealthfront's UITs.
What's more, you can only allocate up to 10% of your Wealthfront portfolio to crypto, so you won't be able to only invest in crypto with this app. If you're already a Wealthfront customer, though, their UITs could be a good opportunity to add crypto exposure and diversify your holdings.
Coinrule is a crypto trading bot that makes it easy to set up trading rules and automate the crypto trading process, even if you don't know a lick of code. The Coinrule goal is to allow everyday investors to compete with professional traders without having to learn how to program, making it one of the best crypto robo advisors for folks who want to actively trade crypto.
The app offers the ability to drag and drop different rules to create your own trading strategy, or you can go with one of their pre-made templates. These rules include things like "sell 50% of my Bitcoin when the price drops more than 25%" or "buy $50 of Ether if the price drops 10%." Not only does this allow you to automate a trading strategy without having to code, it also makes it easier to manage an active trading strategy without having to be at your computer checking the price of Bitcoin every five minutes.
The minimum investment with Coinrule is just $1, and you can start investing with their free Starter plan. Eventually, you'll probably want to upgrade to one of their more robust subscription packages that allow you to unlock additional capabilities when it comes to designing and implementing your own trading strategy. These can run from $29.99 to $449.99 per month.
Robo advisor Titan offers the opportunity to invest in a diversified fund of cryptocurrencies, called Titan Crypto, that's actively managed by their investment analysts. Think of it like investing in an index fund, but for crypto.
Their fund is concentrated in large cap cryptocurrency investments and geared toward long-term investors. Their analysts regularly rebalance the fund and execute tactical trades when necessary, and you don't have to do anything other than sit back and watch your investments grow.
That said, there are some management fees. Titan Crypto charges a 1% assets under management (AUM) fee on deposits of $10,000 or less. If you invest over $10,000, you'll pay $5 per month instead. However, there are no additional trading or withdrawal fees. Titan also actively manages portfolios of large cap growth stocks, so you can invest in crypto and the stock market in one place.
Hedonova allows you to purchase "blocks" in a fund that invests in a long list of alternative assets, including cryptocurrency. In addition to holding crypto, Hedonova's fund also holds investments in wine, art, real estate, startups, P2P lending, equities, and more.
Crypto and startups are the two assets Hedonova invests in most predominantly, with 17% of its fund being allocated to cryptocurrency. Another 3% is invested in NFTs. You'll be charged a 2% AUM fee on your total assets under management and a 20% performance fee (in other words, a fifth of the profits your investment earns) to invest with Hedonova, so the price is a little steep.
That said, the fund has offered high returns. Its historical data only goes back to May 2020, but since then, it's significantly outperformed the S&P 500. If you want to invest in a variety of alternative assets without actively managing your own investments, Hedonova is one of the best crypto advisors for that.
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