General welfare, the biggest independent Robo-Adviser, is now allowing its clients to invest in a few cryptocurrency portfolios for the first time, but with a warning.
It's best to keep your exposure below 5%. Digital platforms known as Robo-advisers offer automated, algorithm-driven financial planning services with minimal to no human oversight.
According to the website Investopedia, a typical Robo-adviser takes an online survey to inquire about your financial state and future aspirations before using the information to provide advice and automatically invest on your behalf.
Four carefully chosen portfolios of crypto assets with investments ranging from general market topics to decentralized finance (Defi) tokens, with metaverse bets and sustainability in between, are now available to over 730,000 retail consumers.
According to Jesse Proudman, vice president of crypto investment at Betterment, they are designed to be simple to use.
The goal of this cryptocurrency product, according to Proudman, is to make investing in a diversified portfolio much simpler than it would be if clients had to choose individual currencies or assets on their own.
Betterment and the cryptocurrency exchange Gemini joined last month to provide consumers a portfolio solution for investing in cryptocurrencies. The most recent cryptocurrency offering from Betterment is made up of digital assets listed on Gemini, with Gemini serving as the custodian.
Additionally, the business advises clients to keep their cryptocurrency exposure to no more than 5% of their investable assets.
Proudman continued, "Investing team did a bunch of study on sort of portfolio design, and sort of settled on that 5% target as sort of an appropriate risk-reward ratio."