Titan Crypto: Worthy Investment Or Risky Business?

Crypto is a volatile asset class that has produced extraordinary returns for some investors. If you're interested in investing in crypto but don't have the expertise, you may want to consider a managed portfolio like the one offered by Titan. Titan is a mobile-first investment platform that offers an actively managed cryptocurrency investment portfolio in addition to its regular services. With a minimum investment of $100, Titan's crypto strategy has produced annualized returns of 120.7% since its inception.

Titan's crypto portfolio is managed by a team of experts who select crypto investments based on your risk appetite and their analysis. Their strategy focuses on crypto assets with strong long-term return potential, employing strict controls to avoid liquidity challenges and maximize reward-to-risk ratios.

While Titan's crypto strategy has performed well, it's important to consider the risks associated with crypto investing and conduct thorough research before making any investment decisions.

Titan's crypto investment strategy

Titans Crypto Investment Strategy

Titan is an investment platform with a team of experts actively managing your portfolio based on your chosen strategy, including cryptocurrencies. Titan's crypto investment strategy is an actively managed cryptocurrency investment portfolio. This means that the experts at Titan will select all the crypto investments for you based on your risk appetite.

To get started with Titan Crypto, customers must deposit at least $100 into the account. Aside from this minimum investment requirement, it is worth noting that Titan's platform is only available to U.S. residents.

Titan charges advisory fees in two simple ways:

• $5 Flat Monthly Fee: If you deposited less than $10,000, you pay a flat $5 per month.
• 1% Annualized Advisory Fee: If you deposited $10,000 or more, you pay an annualized fee of 1%, billed to your account balances monthly.

There are no trading fees, withdrawal fees, or other miscellaneous fees for using Titan Crypto. The only possible exceptions are auxiliary fees for extraordinary customer requests, such as requesting paper statements.

Other Investment Strategies with Titan

In addition to its crypto investment strategy, Titan offers other investment strategies for conventional assets. These include stock picks based on one of three strategies: Flagship, Opportunities, and Offshore.

• Flagship: This strategy seeks to help clients diversify their portfolios and provide personalized portfolio recommendations based on a client's investment goals and risk tolerance. Titan analysts select between 15 and 25 large-cap stocks that they believe can compound capital in excess of the S&P 500 benchmark index.
• Opportunities: This strategy involves investing in between 15 and 25 smaller companies' stocks that Titan analysts believe have the potential to become the next "shining stars." It's a riskier strategy than Flagship but has produced stronger annualized returns (40.6%).
• Offshore: This strategy includes the active management of a portfolio of 15 to 25 stocks in emerging and developed markets outside the U.S.

Through Titan, you can also access third-party real estate and private credit funds, but these require higher minimum thresholds for initial investments.

Titan's fees

Titan offers a range of investment strategies, including taxable accounts and traditional, Roth, and inherited/beneficiary IRAs. The company charges annual advisory fees based on the total assets under management, with fees ranging from 0.7% to 0.9% depending on the amount invested. For example, an annual fee of 0.9% is charged on assets under management between $500 and $24,999, while 0.7% is charged on assets over $100,000. These fees are prorated and deducted monthly from the linked bank account or Titan cash account.

It is important to note that Titan does not charge advisory fees for some strategies, such as Cash Reserve, Automated Stocks, Automated Bonds, and Crypto. The Automated Stocks and Automated Bonds portfolios are managed by a robo-advisor and consist of exchange-traded funds (ETFs). While there is no management fee, investors are subject to an expense ratio, an annual fee deducted from the fund's returns, which covers the fund's operating expenses.

In addition to advisory fees, there are other fees to consider. There is a $100 fee for outgoing ACAT transfers per account and a $100 IRA termination fee. These fees are charged by Apex Clearing, the custodian of the assets.

For investors interested in alternative assets, there are additional expenses. The alternative asset strategies offered by Titan include private credit, real estate, venture capital, and crypto. These strategies carry higher fees, known as strategy expenses, which are charged by the fund itself to cover business and operational costs. For example, the Apollo Diversified Credit Fund charges a fee of 2.35% of net assets attributable to shares.

It is worth noting that Titan does not charge any fees for securities trading, deposits, or withdrawals. However, certain uncommon client requests or actions may result in ancillary fees, such as requesting paper statements or foreign wire transfers.

Overall, while Titan offers a range of investment strategies with competitive fees, it is important for investors to carefully consider the various fees associated with each strategy and how they may impact their investment returns.

Titan's performance and historical returns

As of April 2023, Titan's Flagship strategy, which aims to beat the S&P 500, had underperformed the index by 10.3 percentage points. Its annualized returns since inception were 9.2%, compared to 10.5% for the S&P 500.

The Opportunities strategy, which focuses on small and mid-cap stocks, has fared better. Over 33 months, it returned 23.5% compared to the Russell 2000's 15.4%, with annualized returns of 8.1% vs 5.4%.

The Offshore fund, which invests in international stocks, had lost 27.7% over its 25-month history (as of April 2023), while the MSCI ACWI ex-USA Index lost only 6.6%.

The Crypto strategy, which tracks Bitcoin and Ethereum, had lost 38.2% after fees over a 21-month period. In comparison, a direct investment in Bitcoin and Ethereum would have resulted in an average loss of 38.2%.

It is worth noting that Titan's performance has been impacted by the recent market challenges, and the returns may not be indicative of long-term performance.

Investment Strategies and Fees

Titan offers four actively managed, long-term investment strategies with annual management fees ranging from 0.7% to 0.9% of total assets under management. The fee structure is tiered, with higher balances resulting in lower fees.

In addition, Titan offers three automated portfolio strategies with no annual management fees but with underlying fund expense ratios.

For investors interested in alternative assets, Titan has partnered with private equity firms to offer access to four partner funds with fees and minimums varying widely. These funds invest in areas such as private credit, real estate, and venture capital.

Comparison to Other Robo-Advisors

When compared to other robo-advisors, Titan's fees are relatively high. The base rate is slightly lower than the previous 1.0%, but the lack of extra features for higher account balances is a drawback.

However, Titan's unique selling point is its ability to provide access to alternative investments and active management strategies, which justifies the higher fees to some extent.

Overall Assessment

Overall, Titan's performance and returns have been mixed, with some strategies outperforming their benchmarks while others have underperformed. The company's short track record makes it difficult to discern long-term performance trends.

The recent market challenges have impacted Titan's returns, and it remains to be seen how the strategies will perform over a longer period.

Titan's fees are relatively high compared to other robo-advisors, but the company provides access to alternative investments and active management strategies, which may appeal to certain investors.

How Titan compares to other crypto investment apps

Titan is an investment platform that offers actively managed stock portfolios. It is not a robo-advisor, but it also gives investors access to actively managed portfolios and alternative investments. Titan's free stock and bond portfolios are highly competitive since most other robo-advisors charge a management fee of 0.25% or higher. The actively managed stock strategies have higher fees, but they are similar to what you’d pay for with an actively managed fund. The alternative assets charge much higher fees, but these strategies are also rarely offered to individual investors.

Compared to other investment management firms, Titan does not offer access to certified financial planners, banking services, goal setting, or intentional tax strategies. Its account minimums are also high, with most of its strategies, including the free ones, starting at $500.

One of the key differences between Titan and other investment platforms like Robinhood is that Titan offers actively managed stock portfolios. While Robinhood only allows you to invest in stocks yourself, Titan offers investment teams to actively manage your portfolio for a low fee, making investing more accessible to people who don't know how to invest or self-manage their portfolios. As of 2022, Titan was approaching $750 million in assets under management.

Titan's offer is simple and its fee structure is transparent. Users can use their services for a 1% fee for balances over $10,000 or just $5 per month for smaller balances. They also offer a 3-month free promotion.

Titan's investment strategies include taxable accounts and traditional, Roth, and inherited/beneficiary IRAs. They offer four actively managed, long-term investment strategies with annual management fees ranging from 0.7% to 0.9% of your total assets under management. They also have four partner funds that invest in alternative assets like private equity, startups, and venture capital.

In summary, Titan compares to other crypto investment apps by offering actively managed stock portfolios, a simple and transparent fee structure, and access to alternative investments. However, it lacks some features such as tax strategy, banking services, and goal setting offered by other investment management firms.

Is Titan safe for crypto investments?

Titan is a mobile-first investment platform that offers a mobile app and a team of experts to actively manage your portfolio of cryptocurrency assets. The platform is available to U.S. investors and can be accessed via their website or mobile app on the App Store and Google Play.

Safety Features

Titan addresses the two major security concerns of investing in crypto:

• All Titan users are protected by 256-bit encryption and SSL. All app communication channels are protected by these and other bank-level security and encryption protocols.
• When it comes to linking bank accounts, Titan uses Plaid, Inc. for both authentication and verification.
• Titan also enables you to use custom PINs, Face ID, and Touch ID.
• Titan offers insurance and brokerage services powered by their custodian, Apex Clearing Corporation. Their custodian is a member of SIPC, meaning your account is protected by SIPC insurance for up to $500,000. However, it is worth noting that the Crypto Strategy is not covered by SIPC insurance.

Costs and Fees

Titan charges advisory fees in two simple ways:

• $5 Flat Monthly Fee: If you deposited less than $10,000, you pay a flat $5 per month.
• 1% Annualized Advisory Fee: If you deposited $10,000 or more, you pay an annualized fee of 1%, billed to your account balances. This management fee is assessed every month (1/12th of 1% billed monthly).

There are no trading fees, withdrawal fees, or other miscellaneous fees for using Titan Crypto.

Performance

Titan Crypto has produced the largest returns of all their investment strategies (120.7% annualized returns since inception). However, it is important to note that Titan's Flagship portfolio, which aims to beat the S&P 500, has underperformed the index by 10.3 percentage points as of April 2023.

Customer Service

Titan's customer service is available Monday to Friday from 7 am to 7 pm Eastern and 8 am to 6 pm Eastern on weekends. They also offer 24/7 support through their Virtual Assistant and on Twitter. However, it does not appear that they offer customer service by phone.

Overall, investing with Titan is generally safe, and they offer several features to protect your investments. While their Crypto strategy is not covered by SIPC insurance, they do take measures to ensure the security of your assets and information. In terms of performance, their Crypto strategy has been their best-performing investment strategy, but their Flagship portfolio has underperformed the S&P 500. Their customer service also seems responsive and accessible, although the lack of phone support may be a drawback for some users.

Frequently asked questions