Using a Robo-Advisor: Is This a Good Crypto Investment Strategy?

Robo Advisor
Source: Pixabay
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Cryptocurrency trading requires high-risk tolerance and advanced knowledge. Interestingly, some investors employ robo-advisor platforms to execute trades faster and catch up with the constantly evolving crypto market.

Robo-advisors are digital platforms that provide automated and algorithm-driven investment advice for a variety of assets, including crypto, stocks, real estate and commodities. They can also be used to optimise passive indexing strategies at low operational costs. Using a robo-advisor is a popular strategy, but some investors admit it lacks empathy and sophistication.

To learn more about how you can use a robo-advisor to your advantage, read the following facts.

How Do Robo-Advisors Work?

Crypto trading can be a complex matter to handle for beginner investors. Without the aid of appropriate tools and technologies, newbies may lose track of how their funds are spent and where they go.

This is where robo-advisors come into play, offering affordable advice, user-friendly online features and even elements of human interference.

The emergence of modern robo-advisors has completely changed the game as they are capable of delivering services straight to individual clients. No more expensive equipment or inaccessible instruments!

In fact, robo-advisors can now handle complicated tasks such as investment selection, tax-loss harvesting, and retirement planning.

How to Find a Robo-Advisor?

Find Robo Advisor
Source: Pixabay

The constantly-growing crypto market has vast potential. Robo-advisors have also entered the industry to meet the demands of crypto consumers. When you pick a robo-advisor, it is essential to consider such crucial aspects, such as financial goals, fees, ease of access, services, and other relevant information.

Here we should note that if you prefer a more personalised but still accessible way to enter the market, you can connect with a broker. There are many platforms, such as, that can help you find a reliable brokerage.

Advantages of Employing Robo-Advisor

For investors looking for a better alternative to traditional advisors, robo-advisors can be the right choice. They are cheaper and more accessible as they are available 24/7. All you need is a good Internet connection.

When it comes to efficiency, robo-advisors have also established a good name for themselves in the industry. No need for investors to consult an advisor to help execute a trade. They can simply navigate the online interface and click a few buttons to get started with all the guidance they seek. You can even start trading from the comfort of your home!

Source: Pixabay


With or without a robo-advisor, cryptocurrency investing is an exciting venture. The number of crypto projects, NFTs and DeFi services keeps growing and attracting people from all walks of life, and now might be the right time to enter the market.

That said, remember that crypto investing is highly risky and unpredictable, and you risk losing your entire trading capital.

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Paschal Okafor is NaijaTechGuide Team Lead. The article Using a Robo-Advisor: Is This a Good Crypto Investment Strategy? was written by NaijaTechGuide Team. The article was last modified: May 21st, 2023
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