From advisor to algorithm: What wealth management looks like in 2025

​Big money requires management. For many years, this role was fulfilled by various funds and wealth management firms. But with the rise of cryptocurrencies, collective investment approaches have started giving way to individual strategies.

Since ancient times, the wealthy have sought those who could not only preserve their assets but also grow them. This gave rise to the first trusted managers — initially servants or merchants, later specialized wealth management organizations. Their task was to direct the flow of capital: to invest, hedge risks, and ensure stability. Over time, these services evolved into an entire industry, encompassing not only investment activity but also financial advisory and planning.

The modern wealth management system began to take shape in Europe during the 18th–19th centuries. That’s when the first family banks and trust structures emerged to serve the elite. In the 20th century, they transformed into institutional wealth management firms catering to high-net-worth individuals, corporations, and dynasties.

Their services included not only investment but also tax optimization, inheritance planning, and strategic financial planning. In cases of large asset sales (factories, business shares, real estate), business brokers were brought in to ensure secure and profitable deals.

This model peaked in popularity at the end of the 20th and early 21st centuries. At that time, asset management services became essential for anyone with substantial wealth. Specialized companies offered full teams of experts: analysts, lawyers, tax consultants. Everything revolved around a single goal — preserving and growing wealth with minimal risk. One such company was Bridgewater Associates.

“Since our returns at Bridgewater Associates exceeded 40% in 2010, we were supposed to return a huge amount of capital to our clients. But clients wanted to give us even more to manage. We were always cautious about growth, afraid to kill the goose that lays the golden eggs. Our clients didn’t want to withdraw their money — they wanted us to grow it,” recalls legendary investor Ray Dalio in his book Principles.

A brave new world

But the world is changing. New technologies are emerging that make traditional wealth management firms less relevant for the new generation of investors. Young entrepreneurs increasingly rely on digital tools with no middlemen or bureaucracy.

Today’s investor often prefers trading and cryptocurrency investments over consultations with suit-wearing managers. Algorithmic trading platforms execute transactions in fractions of a second, and personalized strategies are available to anyone with a smartphone and access to an exchange. Instead of paying a commission to a consultant, users can set up automated trading, manage risks, and analyze markets on their own.

As a result, financial advisors are being replaced by digital products with built-in analysis, forecasting, and even learning tools. Crypto wallets with staking and farming features allow for passive income without traditional banks. Instead of lengthy meetings with business brokers, smart contracts and decentralized platforms enable users to buy or sell assets in just a few clicks.

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Wealth management is no longer the domain of institutions. Today’s trends are decentralization and personalization. A new class of investors isn’t afraid of risk because they possess flexibility, knowledge, and access to global markets. Modern investors use algorithms that don’t get tired, don’t ask for fees, and aren’t influenced by emotion. Most importantly, they allow anyone to become their own wealth manager, independent of fund volatility, consultant moods, or corporate interests.

How modern investors manage wealth

Today, investing is far less complicated than it was just 10 years ago. With access to dozens of exchanges, wallets, and apps, anyone can begin working with digital assets. You don’t need to be a technical specialist or have large starting capital — just a smartphone and a basic understanding of the market.

There are numerous ways to invest in cryptocurrencies depending on goals, risk levels, and time horizons. Here are the main ones:

Buy and hold (HODL) – the classic strategy of buying cryptocurrencies (e.g., Bitcoin or Ethereum) and holding them long-term.

Trading – actively buying and selling crypto on exchanges to profit from price swings.

Staking – locking coins in a network to receive rewards for validating transactions.

Liquidity farming – providing assets to decentralized exchanges in exchange for commissions and bonus tokens.

NFTs and GameFi – investing in game projects or collectible tokens that can be traded or used in virtual ecosystems.

CeFi/DeFi crypto platforms – using centralized or decentralized services offering fixed or floating yields.

Conclusion

Even the largest wealth management firms are beginning to recognize the power of cryptocurrency and are rushing to keep up with the trend. They now offer clients crypto products, invest in Bitcoin, enable staking, and create entire departments focused on digital assets.

Nevertheless, traditional wealth management — with its commissions, intermediaries, and complex approvals — is giving way to automation and decentralization. The digital economy demands new approaches: speed, transparency, and user-centricity. That’s why young investors, freelancers, startup founders, and small capital owners increasingly choose cryptocurrencies over outdated financial schemes.

In a world where anyone can be their own manager, the market is shifting toward openness and equal access. It doesn’t matter whether you have an office on Wall Street or just a smartphone in your hand. The world of wealth is transforming — and those riding the wave of crypto investment are leading the way.