In a nutshell, Robo Advisory is the automatization and digitalization of a human financial advisor. In most cases, an algorithm creates, monitors and adjusts a portfolio, without a need of an emotional human financial consultant. After supplying basic information about your risk profile, investment goals and horizon, the Robo-Advisor evaluates your data and builds a diversified portfolio strategy. Robo-Advisors usually invest in Exchange Traded Funds (ETFs); and these exchange-traded funds are based on various securities such as stocks, bonds and commodities.Before you rush to engage in a Robo-Advisor, here are some risks to take note of:Cheaper - But Not Free!Even though Robo-Advisors are cheaper than actively managed portfolios, they still bear costs. This is because Robo-Advisors usually focus on funds or ETFs and do not invest their clients' money directly in equities. Thus management costs are also incurred for these products.Robo-Advisors vs Financial LearningWith Robo-Advisors, many would think: “There is no need to dwell with financial stuff and understand the complexity. Just invest my money and gain returns, Robo Advisor!” That may be true as it can encourage people who have no or little knowledge about the stock market to invest their money. However, they do not provide an incentive to delve deeper into fundamental financial knowledge.There Will Always Be Risks With Stock MarketMany of the advantages of digital asset management are obvious. However, this does not mean that there is no risk with Robo-Advisors. Especially in times of low interest rates, investors must always take higher risks in order to achieve a higher return. And this principle applies regardless of whether the bank advisor is a man or a machine. That is why most Robo Advisors offer investment solutions in different risk classes - depending on the investment horizon and risk appetite of the investor.Despite All That... Here's Why You Should Consider a Robo-AdvisorMore Affordable FeesFees are a yield killer. Therefore, the simplest way for more success in investing money is to reduce costs. On average classical asset managers charge double or even triple the fees of a Robo-Advisor. In addition, while banks prefer to sell their own financial products - usually actively managed mutual funds - Robo-Advisors mainly focus on ETFs, which have ordinarily moderate costs in comparison to other assets.New Opportunities for Everyone Stock exchange is only worthwhile from a certain investment amount or for wealthy people. That's why most independent investment advisors require you to bring a huge sum with you. With digital asset management, on the other hand, you can invest even small amounts professionally. As a result, you engage with financial literacy. Technology-DrivenHumans act emotionally when managing their own assets, which lead them to buy and sell at the wrong time. Instead, Robo-Advisors with the right technology can offer a completely data-driven, emotionless investment and dynamic risk management that keeps portfolio risk as stable as possible over time.What Now?Private investors are seeking help to invest their money professionally, individually and cost-efficiently due to low interest rates at the saving accounts. Private banking and wealth management with excellent customer service starts from $500.000 or even more. So what’s the solution? Robo-Advisors, the digital asset managers, offer partially automated, broadly diversified investments according to your own risk profile and avoid frequent investment errors. Therefore, private banking is going to be accessible to everyone. Digital asset managers help you to pursue your long-term savings goals and can avoid the biggest mistakes. They give structure to your portfolio and ensure that you can focus on more important things. Combined with the high transparency and affordable costs, digital asset managers are a great alternative to conventional savings products. On the other side, due to automatization and digitalization wealth managers can afford it to welcome and maintain smaller investors. A win-win.