Learn more about the benefits of using a crypto robo advisor and why Moonbit is the best choice for your investment journey. Start your automated investing journey today!
Did you know that value of client assets managed by robo advisors reached USD$1.64 trillion in 2022? This figure is projected to increase to $1.95 trillion in 2023. This should come as no surprise as both beginners and experienced investors turn to the best crypto robo advisors to maximise their return on investments (ROI).
Crypto traders are aware of the market’s volatility. The wild price swings present both risks and opportunities to either make money or lose it.
Investors who have previously lost money know the need to have a trusted crypto robo advisor to guide them in the right direction. For experienced investors, it doesn’t matter which direction the market is moving. All they want is for the market to be moving.
Many people tend to lose money in bear markets or perpetual downturns. 2022 is an example of such a period that the majority of crypto investors want to forget as quickly as possible.
Everyone is almost a genius in a bull market. Everything changes when it's a bear market. The 2022 crypto winter caught many investors unaware.
For perspective, the entire crypto market reached a peak of nearly US$3 trillion in November 2021. The market cap had fallen to less than $1 trillion by the end of 2022.
This major downturn was caused by a mix of events ranging from geopolitical tensions to bankruptcies. |Source: CoinMarketCap
There were a series of events that led to crypto investors suffering huge losses from their investments. The geopolitical tensions in Eastern Europe spooked the market and saw investors selling off risky assets. At the same time, central banks were raising interest rates to fight inflation.
The 2022 crypto winter was a major setback for investors and traders. Money was lost. Maximum pain was felt.
However, those that were prepared or knew how to react managed to protect their capital. Some investors even flourished during the winter.
It’s all about strategy, discipline, and the mental fortitude to weather any storms. Before we go any further, let’s take a look at why some crypto traders or investors are outplayed by the market.
There are several reasons why crypto traders and investors fail sometimes. There are stories of beginner investors usually blowing up their first investment portfolio. Some can recover while others give up and walk away in pain and regret.
The first and most important step is understanding the market that you want to get into. The financial markets are a tale as old as time but crypto is novel and many people are still yet to understand the difference between Bitcoin and altcoins.
With that said, here are some reasons why beginner crypto traders struggle in the market:
The facts pointed out above should not discourage you from investing in the crypto industry. They merely point out a problem that can be efficiently addressed by a tried-and-tested solution. As a beginner, a crypto robo advisor could be exactly what the doctor ordered for you.
Let’s take a look at crypto robo advisors and how they can be vital to beginner traders and investors.
A crypto robo advisor is a digital platform or software that utilizes algorithms and automation to manage the process of investing for clients. Bitcoin or crypto robo advisors use artificial intelligence to analyse market data and make solid investment decisions for clients based on historical data, patterns, and overall market conditions.
Crypto robo advisors aim to provide an easier way for investors to manage their money without needing too much knowledge of the industry.
Investors can simply use bitcoin robo advisors to set up their investment strategy based on their investment goals, risk tolerance, and investment preferences. The crypto robo advisor will then create a diversified portfolio that respects your investment wishes while making dynamic portfolio adjustments based on market conditions.
Crypto robo advisors help beginners maximise returns while minimizing losses that can be incurred.
However, bitcoin robo advisors may come with some level of risk. And you must know those crypto robo advisors are not created equal. Some perform better than others.
As a beginner, you may want to look at crypto robo advisors such as Moonbit.
Moonbit is a simple, stress-free and automated crypto robo advisor that gives beginner and experienced investors an edge in the market. It helps investors invest in smart crypto portfolios. But how does Moonbit work?
Moonbit follows a simple process tailor-made to your specific needs so that you reach your financial goals based on your risk appetite, capital, and time horizon.
Our intelligent portfolios use technical, on-chain and macro data to optimize returns for you. Here are our portfolios meant to cater to all types of investors.
This portfolio is perfect for beginners who only want exposure to Bitcoin and Ethereum. They have a healthy risk-reward ratio because they have been tried and tested over many crypto cycles.
This portfolio has so far delivered historical returns of 1,164% and a maximum drawdown of -22%.
The balanced portfolio takes things a step further by allocating other altcoins but with constraints as altcoins can only take certain a portion of the portfolio. This is powerful as it is naturally built to maximize the reward while minimizing the risk.
Historical returns stand at 3,000% while the maximum downside is -27%.
The purpose of this portfolio is in the name – growth. The strategy behind this portfolio is having no constraints on altcoin allocation.
A digital asset with a buy signal can get an allocation of 10 – 20% of the portfolio to increase the chance of high returns when a bull run kicks in. The growth portfolio has enjoyed historical returns of 4,200% and a maximum drawdown of -29%.
This is our most aggressive portfolio and you can tell this from our historical return of 4,900%. The aggressive has altcoin allocation constraints in place but leverages a unique momentum weighting system that results in greater returns.
A digital asset with a buy signal gets a higher allocation weight. This comes with bigger rewards and risks. The maximum drawdown has been kept at -31%.
Our algorithm quickly adjusts to market conditions based on several factors such as macro data. This allows our smart portfolios to adjust their allocation to minimize the damage that may be caused by unexpected volatility.
Our portfolios are made to cater to your personal financial needs. We know that there is no one-size-fits-all solution to crypto investing. Our smart robots are programmed to make your money work for you to reach your goals.
Moreover, our state-of-the-art security features give you the peace of mind you need. Did you know that in 2022 alone, $3.8 billion was stolen from cryptocurrency businesses? We keep your cryptocurrencies safe with Binance Custody, an EU-compliant company.
Another important factor you have to consider is pricing. Is Moonbit a free, paid or freemium crypto robo advisor? We have a fair pricing model as we only make money when you do. This means that we are incentivized to see you succeed. This changes everything. Our auto portfolio rebalancing feature is a major factor in your crypto investing success.
Joining Moonbit is easy. Just follow these steps:
Starting your cryptocurrency investing journey can be a daunting task. There is a lot of information to digest and the market itself waits for no one.
However, you can leverage the power of Moonbit to have a successful journey. Here are the main reasons why we are the crypto robo advisor of choice for beginners.
Investing in cryptocurrencies can be a rewarding journey but it also comes with several risks and pitfalls.
You need to stay ahead of the market to see meaningful, consistent returns on your investments. This is why bitcoin robo advisors exist. They are meant to automate the investing process by using tried-and-tested algorithms that maximize returns and minimize losses.
We have already highlighted that the crypto winter of 2022 wiped away $1.8 trillion in the digital asset market. But not everyone lost money. Those who adjusted to the market downturn managed to protect their capital or book some profits.
Back to you, do you want to see your money work for you? Do you want to invest with a smart crypto robo advisor that respects your financial goals?