In recent years, robo-advisors have gained popularity among investors due to their low-cost management fees and user-friendly platforms. These automated services offer tailored portfolios based on individual investment profiles.
Another growing trend is cryptocurrencies, which saw a massive boom in 2021 before experiencing sharp declines in early 2022. This raises a key question: Do crypto robo-advisors exist?
The answer is yes! Many platforms now combine automated portfolio management with crypto exposure. Below, we highlight the best crypto robo-advisors to consider:
- Wealthfront: A U.S.-based robo-advisor allowing up to 10% crypto exposure.
- eToro: Best for social investing, offering automated crypto portfolios.
- Makara: A fully crypto-focused robo-advisor owned by Betterment.
- Sarwa: Provides indirect 5% crypto exposure via Grayscale Bitcoin Trust.
- M1 Finance: Offers crypto and blockchain ETFs (U.S. only).
- Shrimpy Advisory: A new SEC-registered crypto robo-advisor for beginners and experts.
What Is a Crypto Robo-Advisor?
A robo-advisor uses algorithms to automate investments based on your financial goals and risk tolerance. Traditional robo-advisors focus on stock market investing with minimal effort and low fees.
A crypto robo-advisor simplifies cryptocurrency investing by:
- Automatically creating diversified crypto portfolios.
- Rebalancing and managing portfolios.
- Lending crypto to generate passive income.
No deep knowledge of wallets, exchanges, or individual coins is required.
Best Crypto Robo-Advisors
1 Makara by Betterment
Owned by Betterment, Makara offers algorithm-managed crypto "baskets":
- Bitcoin/Ethereum Baskets: Single-asset exposure.
- Blue Chip Basket: Top cryptos like Dogecoin and Litecoin.
- DeFi Basket: Higher-risk decentralized finance tokens.
- Metaverse/Web 3.0 Baskets: Exposure to emerging sectors.
Fees: 1.0% advisory fee for multi-asset baskets (free for Bitcoin/Ethereum).
👉 Explore Makara’s crypto baskets
2 eToro (Social Investing Platform)
eToro blends social trading with robo-advisory features:
- Smart Portfolios: Automated crypto portfolios.
- Copy Trading: Mirror top crypto investors’ strategies.
Availability: Global (excludes U.S. for certain services).
3 Wealthfront
U.S.-only robo-advisor offering:
- Grayscale Bitcoin/Ethereum Trusts (GBTC/ETHE).
- Max 10% crypto allocation.
- Minimum investment: $500.
4 Sarwa
Global (excludes U.S.) robo-advisor featuring:
- 5% crypto exposure via GBTC.
- Minimum balance: $2,500 for crypto portfolios.
- Fees: 0.50%–0.85% annually.
5 M1 Finance
U.S.-only platform with:
- Crypto/blockchain ETFs (e.g., BLOK, BLCN).
- Commission-free investing.
6 Shrimpy Advisory
SEC-registered crypto robo-advisor offering:
- Pre-set crypto baskets (DeFi, Metaverse, etc.).
- Automated rebalancing.
- Beginner-friendly interface.
FAQs
1. Are crypto robo-advisors safe?
Yes, if they’re regulated (e.g., SEC-registered). Always verify fees and security measures.
2. What’s the minimum investment for crypto robo-advisors?
Ranges from $0 (eToro) to $2,500 (Sarwa).
3. Can I customize my crypto portfolio?
Some (e.g., Makara) allow basket customization; others offer pre-set options.
4. Do crypto robo-advisors charge high fees?
Fees vary (0%–1.0%). Single-asset portfolios often have no advisory fees.
5. Are crypto robo-advisors available worldwide?
Most serve global users, but U.S.-only platforms exist (e.g., Wealthfront).
Conclusion
Crypto robo-advisors simplify investing in digital assets while minimizing risk through diversification. When choosing one, consider:
- Supported cryptocurrencies/ETFs.
- Fees and minimum balances.
- Geographic availability.
Disclaimer: Cryptocurrency investing carries risks. Diversify investments and assess your risk tolerance before proceeding.