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From Robo-Advisor to a Crypto Seller -Breaking

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WealthSimple Crypto Review – From a Robotic Advisor to a Crypto Seller
    • WealthSimple launches WealthSimple Crypto to explore new revenue streams
    • WealthSimple Crypto was launched as Canada’s first federally-regulated crypto trading platform.
    • WealthSimple Crypto gives traders access to more than 30 cryptocurrencies.

WealthSimple used to be one of Canada’s largest fintech platforms that focused on retail. The company’s trading and robo adviser services are still the most well-known. They allow customers access to automated financial advice and stock trading, and offer commission-free stock trades. WealthSimple is now exploring cryptocurrency markets in the last few years. WealthSimple Crypto forms the heart of this strategy. This federally licensed trading platform allows for popular cryptos such as,. and.

To shed some light on the company’s dramatic pivot towards crypto assets, we’ve put together a brief guide to WealthSimple, including an analysis of its business model, its shift away from robo advisory services, and its evolution into a company that makes most of its money from selling cryptocurrencies.

Alternatively, for a more in-depth breakdown of WealthSimple’s crypto platform, check out this excellent WealthSimple Crypto review over at MillionDollarJourney.

What’s WealthSimple?

WealthSimple, a Canadian financial management and technology company was founded in 2014. Initially, WealthSimple’s core offering was its suite of easy-to-use and affordable passive investing tools, which encouraged investors to use the WealthSimple trading platform to build a diversified portfolio of low-cost index funds and ETFs. WealthSimple’s offerings have expanded to include sophisticated trading and advice services, as well as saving strategies.

Today, WealthSimple’s conventional investing products are divided across two separate platforms: WealthSimple Invest and WealthSimple Trade. WealthSimple Invest focuses on passive investing using low-cost index funds or ETFs. WealthSimple Trade, however, is more self-directed and customizable. It offers fractional shares, forex trading, and instant quotes from six exchanges.

However, for many years, WealthSimple’s flagship product was WealthSimple for Advisors, a popular advisory service that allowed WealthSimple Invest customers to connect to both Canadian robo advisors and live advisors for portfolio allocation strategies, tax-saving advice, portfolio rebalancing suggestions, investment risk evaluations, and wealth management guidance.

The market for robo advisor platforms has experienced a significant decline in institutional and consumer adoption over the past five years. Some of the biggest robo advisers (WealthSimple or Betterment) have experienced significant difficulties navigating regulatory environments. Many of the largest robo advisors (WealthSimple, Betterment, etc.) have had significant difficulties navigating the regulatory landscape. Moreover, the ongoing volatility of equity markets due to the pandemic has shaken investor confidence. Several prominent investors have criticised the insufficient transparency of financial decision-making as well the personalization of algorithmic investment strategies.

WealthSimple crypto

WealthSimple has updated its product positioning to capitalize on the increasing demand from retail investors for cryptocurrency trading services in light of the declining consumer interest for robo-advisor services.

In late 2020, WealthSimple Crypto was launched as Canada’s first federally-regulated cryptocurrency trading platform. WealthSimple traders can trade only Bitcoin or Ethereum on WealthSimple. The company’s crypto portfolio has been steadily growing, with a particular focus on blue-chip altcoins such as (ADA and (DOT), and popular community tokens such as Dogecoins (DOGE and SHIB).

WealthSimple Crypto now offers cryptocurrency traders more than 30 cryptocurrencies. WealthSimple is expected to increase its crypto offerings. Crypto-curious traders can benefit from commission-free trading, and only $1 deposit required.

Although the WealthSimple crypto platform represents a positive step forward for the company there are some drawbacks that you should consider before you invest any substantial capital in this emerging asset class. WealthSimple Crypto’s trading platform is still young and has very limited liquidity. There are also very few traders. For traders who are looking to execute quickly, this can result in unfavorable spreads of prices.

Moreover, if you’re concerned about losing your capital in crypto assets, there are a few things to consider. First, all cryptocurrencies purchased through WealthSimple will be under custodial protection by Gemini Trust. While Gemini’s cold storage insurance ensures that your assets are relatively safe from theft, investors will not possess the keys to their crypto wallets, meaning they are technically unable to access their funds without the permission of Gemini.

Second, volatility is a major issue in the wider cryptocurrency market. Most of the top coins have seen a dramatic downturn the last week. It is not unusual for veteran crypto traders to experience this level of volatility. WealthSimple Crypto might be WealthSimple’s first exposure to cryptocurrency and highly-sensitive assets. Before investing any capital via WealthSimple Crypto, it is important to be aware of the potential risks involved in cryptocurrency trading.

What’s the Bottom Line?

WealthSimple crypto may not be the best introduction to cryptocurrency trading but it does provide an example of traditional financial services companies exploring new revenue streams. Investors should not invest large sums of money in WealthSimple Crypto before they are familiar with all the potential risks and rewards of cryptocurrency trading.

The WealthSimple crypto platform is not for everyone, but it’s definitely something worth looking into if you are trying to diversify your portfolio or invest in high-growth assets.

Disclaimer: The views and opinions expressed in this article are solely the author’s and do not necessarily reflect the views of CoinQuora. The information contained in this article shouldn’t be taken as advice. CoinQuora advises its users to research cryptocurrency before making any investment.

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