How to Make Money with Cryptocurrency Robo-Advisors

Handy Tips / 14.12.2020

Machine learning isn’t just for tech scientists. These applications are becoming popular in reshaping the world into a better place. Be it in the healthcare, transport, or food processing industries. Robotization ensures a safer and high yield ratio (output-input). 

So, why not synchronize this technological advancement in the financial sector? That’s where Robo-advisors come in. Robo-advisors are increasingly remodeling cryptocurrency trading by providing real-time investment advice. 

Robo advisor for cryptocurrency, including bots, virtual robots, or algorithms, provides cryptocurrency investment advice and offers fully automated online crypto investing. Ideally, the best crypto Robo-advisor provides users with easy account setup, strong goal planning, ideal account services, portfolio management and security features, customer service, and comprehensive trading education.

But can you make money with Robo advisors? Absolutely yes! There are different ways in which Robo advisors can assist you in making money. Continue reading and find out how you can earn more money with cryptorobo.

How to Make Money with Cryptorobo 

  • Invest in Low-Cost Crypto Index Funds 

Crypto-advisors enable you to make money by investing in crypto index funds-a a hassle-free and low-fee way to invest. A crypto index fund is just like any other financial index fund where investors can buy shares in the fund, reduce risks due to price volatility in the crypto space, and spread risks across many crypto tokens.

Robo-advisors passively manage crypto index funds plus charge lower fees compared to actively managed funds. This translates to higher investment returns. 

Examples of index funds traded on Robo-Advisors platforms include target-date funds and diversified exchange-traded funds. Index funds on crypto platforms are passively managed and translate to less cost. 

  • Tax-loss harvesting

You can make a substantial amount of money with robo-advisors through tax-loss harvesting, which in the long run, lowers taxes when investing. It’s essential to note that some countries such as the UK and Australia have started charging taxes on cryptocurrency investments, thus lowering investment returns. 

Crypto robo-advisors implement tax-loss harvesting by selling an investment whose market price has declined, buying a similar but non-identical investment using the cash. Through TLH, you’ll end up with pretty much the same investment but with a tax loss.

Tax-loss can be used to enhance your crypto investment with up to $3 000 a year. Several factors determine the profitability of tax harvesting in Robo advisor for cryptocurrency. 

This include: 

  • Market performance 
  • Size of the crypto portfolio 
  • The availability of capital gains and income 
  • The stock exposure of the portfolio 
  • Availability of capital gains and income 
  • Tax rates are charged to the investor in a particular year.
  • Diversifying your Digital Portfolio with Automated Rebalancing

Robo bitcoin diversifies your digital asset portfolio, meaning that your investments are spread out to minimize investment risks. In addition to diversifying your digital portfolio, most robo-advisors offer automated rebalancing. Rebalancing allows you to grow your investments together, prevents your portfolio from getting extreme risk, especially when the market is underperforming, and allows you to stay on your financial plan. 

Frequent portfolio rebalancing is crucial to reduce investment risk and ensures that your investments are well allocated in line with your financial plan. Crypto robo-advisors do this for you automatically regarding the state of your investments, thus enhancing your investment returns. 

  • Streamline your Investment Behavior

For any investor, behavior is the most vital part of investing. Crypto robo-advisors enables you to become a better investor by streamlining your investment behavior. 

These platforms enable you to overcome bad investment behavior, including poor timing, overconfidence, and loss aversion, among others. Robo-advisors enable you to become a better investor and earn more. 

Which Crypto Robo Advisors Have the Best Returns?   

There are plenty of robo advisors that have started offering their services to cryptocurrency investors. Here are some of the best crypto robo advisors with high returns you should consider.

  • Coinmatic 

Coinmatic is a leading crypto robo-advisor that seeks to provide a hassle-free means of investing in the crypto sector. The platform is ideal for both beginner and experienced investors looking to make their footing in the crypto space. Coinmatic builds a custom portfolio based on a users’ preferred risk profile. 

The investment engine automatically adjusts users’ profiles with every price movement, ensuring that their portfolio remains balanced and in line with an individual’s investment strategy. The best thing about this crypto-robo investor is that it starts charging users only when their investments hit a 10% profit margin. 

Additionally, every time an individual’s investment hits 10% profit, the platform automatically secures their investments by converting them into EUR. Users are allowed to choose between securing their performance fee or leaving their portfolio untouched. 

  • CryptoML

CryptoML is an innovative crypto robo-trader that employs machine learning to make investment decisions. The platform results from a delegation of a wide range of contemporary matrix-based machine learning (ML) applications based on a wide range of data sets. The crypto robo offers deep market insights and crystal-clear signals. 

Crypto-ML employs algorithmic trading generated via machine learning models. The platform provides crypto traders with machine optimized crystal-clear signals for Bitcoin (BTC), Ethereum (ETH), Bitcoin Cash (BCH), and Litecoin (LTC)  

Conclusion 

Robo advisor for cryptocurrency provides a bespoke investment portfolio for customers optimizing their portfolio 24/7 providing the desired risk level. Crypto robo advisors are increasingly gaining widespread acceptance in the crypto space enabling crypto traders to reduce risks and enhance their earnings. 

Robo-advisors are a good investment. They automatically select funds and build an ideal investment portfolio for each trade for higher returns. Some robo advisors offer users to configure their investment preferences or select default adjustments for better profitability. Simply put, crypto robo advisors leverage technology to enhance the returns on your investments.

Adam is an outgoing young lad who likes adventures and discovering new things. Despite his boring life, he loves writing about cryptocurrencies and exploring what blockchain technology can do for the coming digital world where all adventures will be virtual.