How micro-investing might boost cryptocurrency adoption worldwide

Micro-investing is an innovative new form of investing that allows anyone — including those with very little investable capital — to become financial investors.

The way micro-investing works is very simple. You link your bank cards to a micro-investing app and every time you make a purchase, the app rounds up the amount you spend to the nearest dollar (or whatever figure you pre-determine). The app then takes these tiny amounts and automatically puts them into a diversified investment portfolio composed of exchange-traded funds (ETFs). Therefore, throughout the day, you will accumulate several dollars that go into your investment fund, which over the course of a year can amount to several thousands of dollars worth of investments. Over a five to ten year period, for example, these small investments have the potential to turn into a sizable financial nest egg.

The pioneer in this field is California-based startup Acorns, which allows its users to automatically invest their spare change into stocks, bonds, or real estate through the form of ETFs by connecting their credit and bank cards to the Acorns app.

Blockchain startup Skraps, on the other hand, wants to take micro-investing to the next level. Skraps is developing a new app that merges micro-investing with cryptocurrencies. The idea behind Skraps is to allow investors with little capital and minimum investment knowledge to partake in one of the most potentially profitable asset classes in the world in an easy-to-use and fully-automated manner.

How Skraps Could Boost Crypto Adoption

While the Skraps cryptocurrency micro-investing app provides an excellent way to invest in crypto for those new to the asset class, it also has the potential to boost cryptocurrency adoption around the globe for exactly that reason.

Investors with little knowledge about the cryptocurrency markets as well as those with only a small amount of investable capital will be able to fully partake in this highly promising new digital asset class. Particularly in developing countries, where most individuals do not have much money to put aside for investments, crypto micro-investing could become very popular.

Currently, most individuals who want to get involved with cryptocurrencies simply buy bitcoin on local exchanges and perhaps also purchase one or two altcoins. By doing that, however, they are missing out on the benefits of diversification as well as potentially high returns provided by other altcoins.

Through investing in crypto using the Skraps micro-investing app, users will have the choice between five portfolios — ranked by risk preference — that offer risk-adjusted exposure to the most promising cryptocurrencies in the market. By connecting their wallets and debit cards to the Skraps app, users will automatically invest small amounts of money into their portfolios every day with the app doing all the work. Skraps also offers a Leaderboard where users can post their own high performing portfolios for others to copy.

Moreover, Skraps requires no minimum balance, has no minimum investment requirements, and charges no withdrawal fees, which makes it easier than ever to become a crypto investors regardless of wherever in the world you are located.

If crypto mico-investing manages to take off on a global scale, it has the potential to become an integral driver of cryptocurrency adoption in the coming years.