betterment Review crypto broker 2024

Our veredict

Betterment’s crypto broker service is a notable extension of its robo-advisor platform, designed for both novice and experienced investors looking to diversify their portfolios with digital assets. It provides a user-friendly interface and offers three distinct crypto portfolios, catering to different investment preferences. These include a diversified portfolio of popular cryptocurrencies, a focused portfolio on Bitcoin and Ethereum, and a sustainable portfolio that emphasizes environmentally-conscious digital assets. Betterment’s approach to crypto investment is conservative, encouraging users to allocate only a small portion of their assets to cryptocurrencies, aligning with their broader risk management philosophy.

Despite its strengths, Betterment’s crypto offering comes with certain drawbacks. The management fees for crypto accounts are relatively high compared to its standard investment options, and the platform lacks some of the advanced trading features found in dedicated cryptocurrency exchanges. Additionally, while Betterment’s integration of crypto investments within a broader financial plan is advantageous, it may not appeal to those seeking a more active trading experience. Overall, Betterment is best suited for investors looking to add cryptocurrencies to a diversified, long-term investment strategy rather than those seeking to engage in frequent crypto trading.

Pros

User-friendly Interface Betterment’s platform is designed with simplicity in mind, making it easy for users to navigate and manage their crypto investments effortlessly.
Diversified Crypto Portfolios The platform offers diversified portfolios that include a range of cryptocurrencies such as Bitcoin, Ethereum, Dogecoin, and more, allowing investors to spread their risk across multiple assets.
Integrated Financial Planning Tools The platform includes robust financial planning tools that help investors manage their entire portfolio, including crypto assets, within a comprehensive financial plan.

Cons

High Management Fees Betterment charges relatively high management fees for crypto accounts compared to its standard investment options, which might be a drawback for cost-sensitive investors.
Less Suitable for Active Traders Betterment’s focus on long-term investment strategies and automated management makes it less ideal for those looking to engage in frequent or high-volume crypto trading.

4,5

Threenvest Score

Fees

3,5/5

Regulated

SEC

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To better understand our editorial guidelines and the investment methodology that supports our ratings, you can explore the information in our editorial policy.

Why choose betterment?

Choosing Betterment as your crypto broker is a sound decision due to several compelling reasons. Firstly, Betterment integrates cryptocurrency investment into a well-established and user-friendly platform. This allows users to manage both traditional and digital assets seamlessly, benefiting from Betterment’s automated investment strategies and financial planning tools. The diversified crypto portfolios offered by Betterment provide exposure to a variety of cryptocurrencies, ensuring a balanced approach to this volatile market.

Additionally, Betterment’s emphasis on security and regulatory compliance is noteworthy. The platform is a member of SIPC, protecting securities up to $500,000, and offers FDIC insurance for cash reserves up to $2 million. These measures provide an extra layer of security for investors’ funds, which is crucial in the relatively unregulated crypto market. Moreover, Betterment’s transparent fee structure and clear communication about investment strategies help build trust and confidence among its users.

Furthermore, Betterment’s approach to cryptocurrency investment is conservative and well-suited for long-term investors. By encouraging users to allocate only a small portion of their assets to cryptocurrencies, Betterment ensures that investors maintain a diversified and balanced portfolio. This strategy minimizes risk while allowing for potential growth from the dynamic crypto market. The availability of expert guidance and comprehensive customer support further enhances the overall user experience, making Betterment a reliable choice for incorporating cryptocurrencies into a broader investment plan.

Xavier Tarrasó

EIP and Cryptocurrency Investor

As an expert in crypto investments, I highly recommend Betterment for those looking to diversify their portfolios with digital assets in a secure and user-friendly environment. Betterment’s crypto portfolios are well-structured, providing exposure to major cryptocurrencies like Bitcoin and Ethereum, as well as options for sustainable crypto investments. The platform’s strong emphasis on security, regulatory compliance, and transparent fee structures make it a reliable choice for both new and experienced investors looking to incorporate cryptocurrencies into their broader investment strategy.

How do we review crypto exchanges?

At Threenvest, we conduct a thorough review process to evaluate and rank the world’s leading crypto exchanges. Our goal is to offer an unbiased assessment, providing you with the information you need to make informed decisions on which ones best suit your needs. We strictly adhere to the guidelines of our editorial policy.

We collect data directly from exchanges through detailed questionnaires and conduct first-hand testing and observations during crypto exchange demonstrations. Questionnaire responses, combined with demonstrations and hands-on research from our experts, feed into our proprietary evaluation process that scores each provider’s performance on more than 15 factors. The end result produces star ratings ranging from poor (one star) to excellent (five stars).

For more details on the categories considered when rating brokers and our process, read our full methodology.

Risk Disclaimer

Investing in cryptocurrencies is very risky, you should only invest the money you are willing to lose. Also you should not expect to be protected if something goes wrong.

Neither Threenvest, nor the author, are recommending you to invest with this article.

Alejandro Borja Fuentes

Economist | Cryptocurrency exchange analyst

The author of the review

Alejandro Borja is an accomplished economist with a distinguished career spanning various facets of the financial industry. His academic journey began with a degree in Economics, laying the foundation for his deep understanding of financial markets.

Over the years, Alejandro has honed his skills by working with some of the largest financial media outlets, analyzing and reporting on economic trends and investment opportunities. His expertise in financial analysis has made him a respected voice in the economic community.