If you would like to get into investing but don’t have the time required to learn all of its intricacies, why not hire an automated advisor to invest for you? Robo-Advisors are an innovation in online trading – advanced algorithm-based platforms that require no human supervision to act, offering expert-level financial advice and even automatically investing for you.
What exactly are Robo-Advisors, and what’s the best way to invest in one? Keep on reading to find out.
What are Robo-Advisors?
Like real advisors, Robo-Advisors were designed to provide financial advice and manage online investments with little to no human interaction. While humans often make predictions based on speculations, Robo-Advisors only use advanced algorithms and mathematical rules to determine the types of investments that will be profitable at a given time.
Robo-Advisors can’t be simply created by a programming enthusiast – it requires a wide range of expertise to design and produce, including real financial experts, investment managers, and data scientists. After the foundations are prepared, a team of skilled coders turn these algorithms into software that can act automatically to improve its clients’ portfolios.
How can Robo-Advisors be profitable?
While Robo-Advisors are not necessarily a new invention, they have been constantly optimized and expanded over the last decade. Now, they’re growing in popularity faster than ever before – especially among novice investors who do not have a good grasp of the market nor the funds necessary for large deposits. There are hundreds of options available on the market, each with its advantages.
When engaging with a crypto Robo-Advisor for the first time, you’ll be most likely asked to fill out a questionnaire that assesses your investment needs and helps the advisor act accordingly with your investment strategy. The advisor will automatically create a portfolio of diverse assets, monitoring the market activity and trading accordingly to make you a profit.
What are the benefits of using a robo-advisor?
Robo-Advisors might be the right tool if you have a single investment goal and don’t care much about learning about the financial market. Your portfolio will automatically adapt to the current market situation, rebalancing itself when needed – all you need to do is wait for the profits to accumulate and check your balance from time to time.
Robo-Advisors also feature low fees and can execute tax-loss harvesting to increase profits and limit costs. When trading cryptocurrency, the expected annual interest rates can be up to 5 times higher than traditional investing. Using a Robo-Advisors is as easy as it gets in finances and investing, requiring you only to spend a couple of minutes a day instead of investing hundreds of hours just to learn the market and then having to spend days and nights monitoring your investments – have it all done automatically for you with a Robo-Advisor and reap the benefits!
