Review Is Acorn Crypto a Scam or Should I Invest

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Is there an app like Acorns, for Bitcoin investment?

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Yes there is a couple of them out there.
We’ve been hard at work on our take on it.

We built Bamboo , Bamboo is an App that allows you to do micro investments into digital assets such as Bitcoin and Ethereum. We function similar to Acorns, but are providing digital assets as investment class instead of ETF’s.

Bamboo App is available on iOS right now and will be available on Android later this year.

Acorns App Review 2020 – Is It Suitable For You?

The days when only a few people had access to investment opportunities are long gone.

Today, almost anyone with a smartphone can take a plunge into the world of investing, without experience or knowledge about how the markets work, and more importantly, with less and less money. Most FinTech start-ups today are targeting small value investors and more specifically younger people who find it hard to save, let alone invest.

In this Acorns review, we look at a platform that allows you to invest using spare change by rounding up the purchases you make

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What is Acorns?

Acorns is a micro-investment app that was founded by Walter and Jeff Cruttenden and launched in August 2020 with the aim of making investments accessible to everyone. The app mainly targets younger people, including college-aged students who are just getting started on investing. This is shown their 4-year free management program for college students with valid .edu email addresses.

The app combines the robo-advisor model with automatic saving to enable users to invest spare change in a growing account. It was one of the first apps based on the idea of saving roundups from your purchases.

That approach may prove useful especially for those saving for retirement using the platform’s retirement accounts called Acorns Later. The app deducts and makes the investments into a portfolio that makes sense for you. If you are new to investing, this may be the app for you

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    No minimum amount for opening an account. Then the platform only requires $5 to start investing You can set up an IRA account using your spare change Customized portfolios based on the information you provide when signing up There are no withdrawal fees The app is easy to use, this helps new investors who may be overwhelmed by the complexity of investing Free management for college students. The platform waivers management fee for up four years for students with valid .edu emails. Educational content
    No tax loss harvesting or tax benefits of any kind. The platform only sends your 1099 if your account activity warrants it. Limited investment options. The monthly fees can be high for investors with small account balances. $1 a month is 12% a year for someone with $100 only. That is very expensive compared to other tools that charge 0.25% No human advisors

Acorns App – Sign Up Now

  • No Minimum Amount
  • Customized Portfolios
  • No Withdrawal Fees
  • Easy to Use

How does the Acorns Investing App Work?

Instead of funding your account through bank and electronic transfers, Acorns encourages you to invest using your spare change through ‘round-ups’. The company also advocates using other methods including Found Money, referrals and recurring investments. To use the micro investing strategy, you connect your bank accounts, PayPal or cards that you use for everyday purchases. The spending is then rounded off to the nearest dollar. The change is then used for investing.

The round-ups feature works by collecting all your change, when the amount reaches $5, it is transferred to your Acorns account for investing. If you pay $3.75 for a service or a product, Acorns will round off the price to $3.00 then collect the $0.25 ‘change’ for investing. The feature is the platform’s key selling point and it may help people who are unable to save their money.

The app also allows you to invest manually, however, this would require you to go through a list of all your purchases and decide which one you want to round up. You can also transfer funds into your Acorns account from your bank. The roundups are invested in real time.

Acorns’ IRA accounts allow you to save for retirement by making recurring contributions. The recurring investments allow you to invest any amount from $5 per day, week or month. The money is then distributed into over six ETFs through their partner Vanguard. This allows your investment to be diversified by being distributed into over 7000 stocks.

Getting Started with Acorns

Acorns is available for US residents with valid social security number and who are above the age of 18. When creating an account, the first step is entering a valid email and setting a password. This will be your login credentials for the app. The next step is linking your bank so that the platform can collect roundups. This step is skip-able and you can add the information later.

The next step requires you to fill in your personal information including name, social security number, date of birth and citizenship. You will also be required to fill in your address information, state, city and phone numbers before you can access the next form that requires you to set a security question for your account.

To find the right portfolio for you, you will be asked suitability questions that will be used to determine your risk tolerance and the perfect investments for you. They include employment status, yearly income, timeframe, reason to invest and net worth. Based on the answers you provide, the platform will show you how your portfolio is divided up; you can change this later in the app. It shows you the percentages every dollar is broken into and what they are invested in.

The platform will ask you to set a recurring amount that will be invested per week from $5 to $50 per week. Your account will be approved in 2 to 5 days and you will be ready to start investing.

Acorns portfolio recommendations

Depending on the answers you provide during signup, you will be recommended either of the following portfolios:

    Conservative and moderately conservative – these portfolios contain ETFs with greater percentages of bonds that decrease the effect of the stock market’s ups and downs. This means your money will not be able to grow faster but there will be less likely fluctuations in your account balance, and you are less likely to sell at a loss. Moderate – this portfolio includes a mix of stock and bonds to balance the growth of your balance with stability provided by bonds. This will be likely suggested to you if you chose a medium-term investing timeframe or if your investment reason was to save for a large purchase. Moderately Aggressive and Aggressive– these portfolios are suggested to those looking to invest for the long term, such as for large purchases over a 10 years plus term or to fund a comfortable retirement. The portfolios will have more stock ETFs to expose your investment to the wealth-creating potential of the market over long terms. However, these will have more fluctuations in the short term.

What Features does Acorns Offer?

Acorns Later – Acorns supports individual retirement accounts including Roth IRAs, SEP IRAs for self-employed people and the traditional IRAs. The costs for the accounts in the Acorns Later is $2 per month.

Acorns Spend – this is a debit account for those who would like to integrate their spending and their investing. Acorns markets the feature as ‘the only checking account with a debit card that saves, invests and earns for you’. That is because the roundups are deducted directly and you may also qualify for ‘Found Money’ depending on your location and where you shop. The feature also has unlimited ATM reimbursement. The cost is $3 per month, which is pretty high compared to other similar services.

Round-ups multiplier – if you want to boost your contributions, you can use the Acorns multiplier. It offers to multiply your roundups by x2,x3, or x10. With the x10, if your monthly contribution was $50, it will now be $500. This feature is available in all accounts but only in the app version.

Rebalancing – Acorns rebalances your portfolio automatically as you continue investing. When you deposit or withdraw funds from your account, the platform adjusts the proportions of the ETFs towards the preferred allocation.

The platform also reviews your portfolio quarterly, sells overweight ETFs, and use the funds to buy under-represented ETFs to ensure no ETFs fluctuate 5% above or below the target allocation. This is also done when you change your portfolio. The platform adjusts the allocation of each investment to match the new risk profile that you have selected. However, this may cause adverse tax consequences.

Found Money – these are rewards that you get when you shop with Acorns’ Found Money partners. It is like a cash back program. The company you make the purchase at will automatically invest in your Acorns portfolio. Currently, Acorns has over 200 partners including Nike, Mac’s, Apple, Amazon and Hulu. The Found money rewards will land in your account between 90 and 120 days after the purchase.

What Acorns does best?

    Education – the platform provides learning material through their online finance site called Grow. The platform provides content from how to save, spend and invest to student loans and other financial topics that may be useful to a beginner in investing. Grow content is also integrated into the mobile app. Automation – the platform handles your investment for you. You only have to link as many cards as you want and the app will round up purchases from all of them automatically, and give you the option of transferring the change into an investment portfolio. People who find it hard to save may benefit from this tool. You also have the option of transferring lump sums to boost your portfolio, either manually or automatically by setting recurring deposits. No minimum amount to open an account. Also, you only require $5 to start investing.

What are Acorns Fees?

The fee charged by Acorn may be an advantage or disadvantage depending on your account balance. The platform charges $1 per month for the Acorns Core account, $2 per month for Acorns Core and Acorns Later and $3 for Acorns Core, Later and Spend. These prices are up to $1 million. Those prices may seem as low but may be expensive for smaller balances.

The account fees are waived for college students below 24 an have valid .edu email addresses, however, it is only for the Acorns Core and Later accounts. If you want to use Acorns Spend, you will have to pay $3 per month.

Is Acorns right for you?

The platform targets the younger investor, someone who doesn’t know the market or who just wants to invest without having to figure it out. The platform works best for those who find it hard to save for investing, those with less money to invest with and want to get started or those who just want to invest completely hands-off. The platform will collect money and create a portfolio for you. The work should work great with extravagant spenders.

Acorns Review: Verdict

The idea of investing after every purchase may seem like a good idea for those that find it hard to start investing or saving. However, it may not be possible to get sizeable returns on just spare change, plus the monthly service charge may take away potential returns.

The platform is a great choice for students who don’t have to pay any fee and new investors looking for a quick and easy way to get started. For others, the platform is relatively expensive, especially if you are investing low amounts. The platform can also be a great way to supplement your other investments.

How to Identify Cryptocurrency and ICO Scams

Dozens of new cryptocurrencies launch each month, and alongside these new tokens and coins comes a series of initial coin offerings (ICOs). The appetite among a broad pool of investors for these opportunities has grown, even in spite of the fact that cryptocurrencies were battered in 2020. All of these factors combine to entice scammers. After all, if investors have proven that they are willing to throw money toward a highly speculative cryptocurrency, they seem to be equally likely to invest in fraudulent tokens or ICOs.

For the cryptocurrency investor looking to make the most of the host of new investment opportunities while remaining safe from fraudulent ICOs and sketchy coins and tokens, the prospect can be daunting. Blockchain and cryptocurrency technology is developing at a rapid pace, and even experienced investors may find it hard to keep up with the terminology. While there’s no guarantee that any cryptocurrency or blockchain-related startup will be legitimate or successful, the steps outlined below can help you to be as sure as possible that you’re not falling for a scam.

Get to Know the Team

Perhaps the single most important success factor for any ICO or cryptocurrency is the developers and administrative team behind the project. The cryptocurrency space is dominated by major names, with superstar developers like Ethereum founder Vitalik Buterin capable of making or breaking new projects simply by having their names listed on a development team. For that reason, it’s increasingly common for scammers to invent fake founders and biographies for their projects.

The best protection against this fraudulent tactic is to thoroughly research the individual team members of a project before you invest. It’s a bad sign, for example, if you’re unable to find any information about a particular developer or founder on LinkedIn or other social media outlets. Even if profiles do exist, check to see if their activity seems to match up with the number of followers and likes they accrue. Individuals who rarely engage with their followers and yet have thousands of fans may not be real.

Beyond determining whether the development team is real, it’s important to make an effort to see if their qualifications measure up. Do the founders have the experience they claim to have? Is it relevant to the current project at hand?

Pore Over the Whitepaper

A cryptocurrency or ICO whitepaper is the foundational document for that project. The whitepaper should lay out the background, goals, strategy, concerns, and timeline for implementation for any blockchain-related project. Whitepapers can be incredibly revealing: companies that have a flashy website may reveal they lack a fundamentally sound concept. On the other hand, a company with a website containing spelling errors may have a whitepaper that indicates a rock-solid concept and a carefully conceived implementation plan.

The first step toward analyzing a whitepaper is to read it very thoroughly. Check to see if the whitepaper has complimentary resources as well, including financial models, legal concerns, SWOT analysis, and a roadmap for implementation.

Companies that don’t offer whitepapers should be avoided at all costs. Still, it’s possible for a fraudulent company to put forward a convincing whitepaper, as was the case with PlexCoin; this company managed to raise over $15 million before the U.S Securities and Exchange Commission (SEC) stepped in to shut it down. A whitepaper should answer all of the questions a potential investor might have about what sets this particular project apart from its competitors, how it aims to be successful, and the measures it will take to achieve its goals.

Look to the Token Sale

Any ICO will depend upon a token or currency system in order to facilitate the crowdfunding process. Legitimate companies and endeavors make the system itself and the progress of the token sale easy for potential investors to view. Look for the token sale figures as the ICO is ongoing. Better yet, watch the token sale over time to see how it is progressing. If a company makes it difficult for anyone to chart the progress of its ICO, this is a major red flag. Some scam ICOs will hide their token sale progress under the pretense of individual contribution addresses; this prevents potential investors from seeing exactly how much has been raised and how much time remains in the sale. In some cases, this might be an effort to generate a sense of urgency among potential investors, even if there isn’t evidence of a successful sale going on at the same time.

How Feasible Is the Project?

While it may seem obvious, ICOs, and cryptocurrencies with the greatest chances for success are those that have the fundamental structure to outlast their competitors. Many launches, even highly-publicized ones, have sputtered after initial interest faded. Your best chance of a successful investment relies on a company having an achievable, feasible set of aims. The company should have a compelling concept for the time being, but it also must be able to carry that concept over into execution over the short and long terms alike.

Going along with the question of feasibility is the issue of transparency. Companies that have outstanding concepts and models are more likely than others to want to be as transparent as possible with the broader community. Look for companies that aim to keep potential investors up to date with regular, detailed progress reports on a company website or on social media. It’s also useful to look if a company has a timeline for what has taken place in the development process, as well.

Exercise Caution

Even the most successful ICOs and cryptocurrencies are slammed for being fueled by speculative investing. The idea of getting rich quick on an investment in a hot new project is tempting enough to draw seasoned investors and beginners into risky areas. Keep an eye toward caution as you look for new investment opportunities in the ICO and cryptocurrency spaces. Be aware that projects sounding too good to be true likely are. Spend time scrutinizing every detail, and assume that the absence of a piece of crucial information may be an attempt to hide an unsound model or concept. Look for outside sources to verify the legitimacy of any project before making an investment, and always ask questions that you can’t already find the answers to. The cryptocurrency and ICO spaces offer tremendous opportunities for investors who have done their homework and are able to make sound investment decisions. They also feature pitfalls, which can lead to large amounts of money being lost due to scams, frauds, or even legitimate businesses that are simply poorly designed and unlikely to succeed. Review: Is Acorn Crypto a Scam or Should I Invest?

We can’t advise you on whether you personally should invest in cryptocurrency.

Our portfolios are designed to help you realize maximum reward over time, for minimum risk — through proven strategies like Modern Portfolio Theory. Because the value of cryptocurrency can fluctuate dramatically in a day, it’s a speculative investment, and we don’t want to gamble with your money.

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