Bamboo Crypto Review
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In this Bamboo App review, I will discuss what the Cryptocurrency investing platform offers its users. I will dive into how it enables Australian users to invest in Crypto. As well as discuss, the fees involved and how to get started with the Bamboo app. I hope you enjoy this Bamboo App review and see if you like the platform for micro investing in Crypto.
What is Bamboo?
Investing in Cryptocurrency may seem like a dark and mysterious thing for those wanting to get started. You have likely heard stories of people hitting it big with Crypto. But you have also heard of people forgetting their passwords and losing their funds forever.
Learning about Cryptocurrency isn’t too hard. However, it does take some time, just like learning to invest in stocks or property. Fortunately there are apps like Raiz and Spaceship that make investing in stocks with little to no knowledge very easy.
Bamboo app is the Crypto version of these micro investing platforms. The Bamboo app utilises the power of dollar cost averaging. This is investing small amounts of money frequently. This strategy is proven to be better than trying to “time the market”.
Bamboo is the only app of its kind in Australia that enables Cryptocurrency micro investing. It also utilises the power of round-up technology to then invest in Crypto. I will delve into this round-up technology further in this Bamboo review.
Bamboo enables users to select their custom portfolio mix across Bitcoin, Ethereum, Gold and Silver standard. If you have a Self Managed Super Fund (SMSF) you can invest in Cryptocurrency through the Bamboo App.
Bamboo automatically invests your round-up money once it hits $50. You can also make one off investments into your Bamboo app. Automated investing into Cryptocurrency via Bamboo is a great way to gain exposure to the asset class. This is because the emotion and thought process is removed and it happens automatically.
How Does Bamboo Work?
Bamboo provides its users the ability to build out a diversified Cryptocurrency portfolio. It does this through the use of dollar cost averaging their daily spending. Its round-up technology positions Bamboo uniquely in the Australian market as the only platform utilising this technology.
But what exactly is this magic “round-up” technology? Similar to the ETF investing platform Raiz, Bamboo has a feature where you can link the account to your debit or credit card for daily purchases.
Bamboo has partnered with a finTech company called Basiq to accelerate digital onboarding and provide open banking user data. This allows Bamboo app to accurately and seamlessly round up users’ everyday transactions and invest in their portfolio.
If you set up monthly round-ups then Bamboo will “sweep” your transactional account. Bamboo will then apply any round-ups it sees during that time period. Provided the round-ups are over $50 they will then get invested into your portfolio.
If you bought a coffee for $4.50, then Bamboo would round that transaction up to $5. The extra $0.50 would then go towards funding your Bamboo investment. These round-ups accumulate and once they reach $50 are automatically invested into your chosen portfolio.
The beautiful thing about round-ups is that they can really grow quickly over time. You also don’t have to think about it, you can set and forget and let it all happen for you.
As well as adding funds through round ups, you can add funds in one off payments. This will enable you to either take an opportunity within the volatile Cryptocurrency market or further add to your portfolio.
Bamboo is really positioning itself as your micro investing/saving app that provides exposure and potential growth through Cryptocurrency.
Is Bamboo Safe?
The first thing to note is that Bamboo is not a digital currency exchange platform. This means it doesn’t have the same obligations as platforms like Coinspot of Swyftx.
These exchanges are registered with AUSTRAC. AUSTRAC is a Government body that monitors financial transactions for money laundering, tax evasion and other financial crimes. They are legally required to be registered with AUSTRAC. However Bamboo is not required to be registered.
As a registered business in Australia, Bamboo still falls under Australian Consumer law. There are a lot of rapid changes occurring within the Cryptocurrency space and regulation is one of them. So it wouldn’t surprise me if more regulation came into the industry. This can only be a good thing for the end user.
Bamboo partnered with Basiq and Split payments for data security. It utilises two factor authentication and strict internal security systems. Data is stored at certified data centres and includes encryption and frequent security testing.
Bamboo teamed up with another finTech company called Fireblocks to act as Bamboo’s asset custody solution. Fireblocks is one of the World’s leading providers of Crypto custody. It has multi-layered security, regular penetration testing and cutting edge technology.
Fireblocks obtained the SOC 2 Type II security certification from Ernst & Young in 2019 for its security protocols. It is also Anti-Money Laundering (AML) compliant and has secured the transfer of over $1 Trillion in digital assets.
Bamboo also offers users the ability to invest in Gold and Silver standard. These assets are kept in cold wallet storage solutions. Cold wallets are kept offline to reduce the risk of being hacked. Hot wallets are connected to the internet and are less secure.
What Can You Invest In?
Bamboo keeps the Crypto investment options very simple for its users. You have the choice of investing between 4 assets, Bitcoin, Ethereum, Gold & Silver Standard.
When setting up your automatic investing option you will be prompted to select an asset allocation for your portfolio. This just means you can select how much of each asset you wish your investment to be split across.
If you want 50% in Bitcoin, 50% in Ethereum and 0% in Gold & Silver Standard. Then your round up investments will allocate your funds accordingly.
Bitcoin: Bitcoin is a decentralized digital currency. That uses peer-to-peer technology to facilitate instant payments.
Ethereum: Ethereum is the “world’s programmable blockchain.” It is a programmable network that allows smart contracts for anything from financial services to gaming.
Gold & Silver Standard: These digital tokens are fully backed by physical bullion. This bullion has been kept in a vault, audited and insured. This gives you a good way to gain exposure to precious metals through the app.
You are also able to make one off investments and you can choose what assets you want to invest in with these funds.
The key thing to remember here is that Bamboo is not a Crypto exchange. So don’t expect to be able to buy and sell all the other Cryptocurrencies that exist. The philosophy behind Bamboo is to allow investors the ability to microinvest into Crypto through dollar cost averaging over time.
Fees are always a big part in selecting the appropriate investing platform for your needs. Since I have been learning more about the Cryptocurrency market I have had to come to terms with fees being slightly higher than with investing in Stocks.
That said, lots of platforms offer very competitive fees for the ability to access Cryptocurrency. Bamboo is one of these platforms offering low fees and easy access.
The Bamboo app offers a clear fee structure for their users wanting to invest in Cryptocurrency. Bamboo uses a tiered fee structure based on the deposit or withdrawal amount.
- For an amount less than or equal to $100 to fee is $1.49.
- An amount greater than $100 and less than or equal to $250, the fee is $2.49.
- If the amount is greater than $250 but less than or equal to $500, the fee is $3.99.
- For any amount greater than $500 the fee is 0.8%
Just like with other investing platforms it is important to know the fees involved. You need to see how they match up with your investing strategy.
Based on Bamboo’s philosophy it would seem likely that most automatic deposits would occur in the under $100 range. However, this would depend on your daily spending frequency and your frequency of investments within the app.
If your investments were to be around $50, then this fee would be roughly 2.98%. This would sit on the higher end of the spectrum for fees. However, if you had your limit amount at $100 the fee would be much more reasonable at 1.49%.
The bigger question here is why are you looking at using the Bamboo app? Bamboo is a great solution for people that want a way to automatically invest in Cryptocurrency. Especially without having to think or get emotionally involved in the decision making process.
It is also great for people that don’t feel very confident about Crypto. It will let them dip their toe in the market slowly, with smaller amounts of money. If you are in either of these positions, then paying a fee around 1.49% or lower would be very reasonable for the peace of mind.
Sign Up Process
The sign up process is very simple, you can download the app for your mobile phone. It currently is only available on mobile phones, there is no web based version of the platform.
Like always if you want to start investing with the platform, look out for referral codes. Referral codes often score yourself some extra goodies. Head to the bottom of this Bamboo review for my referral code if you want to get started investing with Bamboo.
Once you have downloaded the app, you will be asked to create an account. Just follow the simple steps throughout this process.
I must note that currently Bamboo is only compatible if you have an Australian Bank account. Although they do have a waitlist for the US, so I expect to see global expansion on the horizon soon.
You will then be asked to provide your mobile number, and will receive an authorisation code. Put this in and progress to the next step.
You will be required to select the account owner type. Here you can choose between an individual account or an SMSF account.
You will then need to input your details including full name, email address and create a password.
From here you will proceed to link your bank account. You will then select your portfolio asset breakdown as well as the round up amount.
Cryptocurrency has gained significant interest from investors, especially those looking to allocate some funds towards the alternative asset class. As such there has been a lot of interest for Australian investors to have access to Crypto in their Superannuation Funds.
To date there haven’t been any industry Super funds that have allowed exposure to Crypto. So only investors with Self Managed Super Funds (SMSF) can access this investment option.
Bamboo has the functionality for its users to be able to invest in Cryptocurrency via the users SMSF. They will handle the backend reporting and valuations. This way you have simple and accurate data to provide your SMSF auditor.
Bamboo does not provide their own in house service to create a Self Managed Super Fund. However, they have partnered up with Sequoia Superannuation. Who are SMSF experts that can help users open an SMSF if they want to.
There are many options for opening up a SMSF, ranging from cost effective, to very expensive. It is often best to get professional advice around something like this.
If you already have a SMSF and are looking at gaining some exposure to the Cryptocurrency markets, then you can through Bamboo. Investing via a dollar cost averaging strategy reduces your market timing risk significantly and it also takes emotion out of the process.
You can sign up to invest with your SMSF in minutes. All you need is your Fund Name, Trustee Name and Funds BSB & Account Number. If you want to invest via your SMSF with Bamboo you can speak with a team member to assist with the onboarding process.
Cryptocurrency can seem like a very daunting space to get into. I know this as I felt the same way when I first started learning about it.
Like with stock investing platforms I really rate companies that provide strong educational content.
I feel like nearly all Cryptocurrency platforms can take more ownership around their educational content. In order to help their users better understand the space.
Bamboo does a great job of providing open source monthly updates of how the business is progressing on their blog. They also have some great posts on there explaining what Bitcoin & Ethereum are and around dollar cost averaging.
Bamboo are active across Twitter, Instagram, Facebook and their Blog. They have been extremely easy to reach through DM’s so far.
I would love to see them go harder on providing educational content around Cryptocurrency. Not only would this help greater inform their current users, but also help more people to start investing in Cryptocurrency.
Cool Upcoming Features
I always love seeing companies bringing out new features to constantly improve and progress their platform and user experience. So it was great to see Bamboo had a few new features of their own to bring out.
The first feature is a portfolio rebalance feature. They say you will be able to easily rebalance your portfolio as and when you choose.
The idea behind rebalancing a portfolio is to manage the risk involved with the positions you have. If you wanted your portfolio to sit at 50% Bitcoin and 50% Ethereum. Say, Bitcoin doubles in value while Etheruem stays the same your new portfolio would be 75% Bitcoin and 25% Etheruem.
This would mean you have more risk exposure to Bitcoin than you wanted and less risk exposure to Ethereum as you wanted. So rebalancing would lead to selling some Bitcoin and buying some Ethereum to get back to your 50% split.
For those that like portfolio management or want to be a bit more involved in their portfolio this is a cool feature. I am unsure of the costs involved yet, but will await this feature with interest.
The other cool feature is a reward functionality earned on your holdings. Some other platforms provide yield for holding your assets and this feature may be something similar to that. Not too much has been said about this yet, but I will be keen to see what happens here.
Pros & Cons of Bamboo
- Low barrier to entry for investing in Cryptocurrency
- Round up technology
- Automated investing
- Custom Portfolio Construction
- SMSF Functionality
- Potentially High fees on low accounts
- Educational content is lacking
- Inability to purchase most Cryptocurrency, so won’t suit all investors
Who is Bamboo For?
Bamboo is the perfect platform for any newcomers to Cryptocurrency that want to get involved but haven’t yet. Or for those investors that want to invest in Cryptocurrency, but don’t want to think about it, just set it on autopilot.
Bamboo’s round up technology and automatic investing make it extremely easy to use. It is a great platform for beginner investors or seasoned Crypto investors alike.
If you want to day trade Cryptocurrency, or have the ability to buy coins like Dogecoin or Shiba then this platform doesn’t provide that functionality. Try looking at platforms like Coinspot or Swyftx instead.
Bamboo has positioned itself as the only Crypto micro investing App in Australia. So if you want to start investing in Crypto. Or just want to invest in Crypto and not have to think about it, Bamboo is the platform for you.
Sign Up Bonus
I hope you have enjoyed this Bamboo Crypto App review and found it insightful around what Bamboo has to offer.
If you like the sound of the Bamboo app and want to start investing. Then you can sign up here and you will receive a bonus $10! If you are reading this on a computer then save the link so you can use it on your Mobile.