Should You Use A Robo Advisor With Crypto Investments?

Over the past few decades, investing has become easier and more accessible. You no longer need to have any prior financial acumen to get involved. This has been both good and bad for the industry. Scams have popped up, such as binary options trading and the like. On the other hand, many people have made money with a legitimate, fun side hustle.

This has been true for cryptocurrency too. Without the excitement of investing, cryptocurrency would not have seen its popularity surge as it has. As of yet, it is still not a practical currency to use – and only with a huge interest in the concept will it get there. The ease with which people can invest in crypto has brought millions to learn more about what is likely the future of currency.

But how far should this ease with which people can invest extend? What’s the deal with robo advisors? You can see in this Wealthfront vs Betterment online comparison how these robo advisors incorporate cryptocurrency. Is it a good idea?

The case for robo advisors

The case for robo advisors in investing is pretty straightforward. Values of currencies and shares go up or down based on a huge variety of factors. There is no way a human could come close to being aware of all of them. Robots, however, can be trained to use all the information available, including a trade’s entire history and what is happening right this minute.

While robots are flawed, seeing as their algorithms are written by humans, they are developed with machine learning capabilities, meaning that they self-correct. In other words, they will get some things wrong, but are likely to be far more accurate than humans and much more open to learning and adapting.

Robo advisors also give amateur investors the chance to invest without having to undergo tremendous training beforehand. Instead of learning everything experts have spent decades exploring, they have to learn how best to use the robo advisor platform.

So what about cryptocurrency? Is the robo advisor route worthwhile?

Why crypto traders are interested

So far, the response from many experienced crypto investors has shown that it is definitely an attractive option. Many cryptocurrency traders have used robo advisors to make a lot of money. However, there are caveats.

The main difference between using a robo trader for regular trading and for crypto trading is that cryptocurrencies are still very new. Robo advisors don’t have the immense volume of information that they do with other trades.

Nonetheless, they are still able to make recommendations with more accuracy and less emotional bias than a human can. Furthermore, with many of these platforms offering robo-human hybrids, you can get the best of both worlds.

With the massive swings, cryptocurrencies have experienced over the past few years, it’s easy to forget that they are still so new. Many other currencies or trades have taken decades to move as drastically. However, despite cryptocurrencies being so new, robo advisors have plenty of raw data to work with.

If you’re considering using a robo advisor for crypto investment, it is well worth a try. Remember, you can step in and take control at any moment.