Automatic recurring Bitcoin purchases or simply dollar-cost averaging (DCA) is an investment strategy where investor divides up the total amount of purchases across a range of prices & timeline in order to reduce risk and impact of volatility on overall investment.
Whether it’s because you have some extra income every month you feel okay investing with, or just because you are not very keen on following the price every day or both. This type of investment behavior is highly useful for a lot of people especially for anyone that wants to have some skin in the game but is still new to Bitcoin.
Recurring purchases of BTC can be done on a weekly, bi-weekly, or monthly basis. And since recurring buying happens without you having to think about it, it’s making sure you will eventually have a nice stash of Bitcoins no matter what happens with the price.
The process to get started with recurring purchases goes like this:
- Sign up on one of the platforms below.
- Verify yourself, and link your bank account.
- Choose to buy Bitcoin weekly, monthly, or with every paycheck.
- That’s it! Bitcoin gets delivered automatically to your wallet.
Lets now look some of the best places where you can do recurring Bitcoin purchases in 2020.
- Crypto.com – Available Worldwide
- Coinbase – Available Worldwide
- Gemini – Available Worldwide
- Coinmotion – Available mostly in the EU
- Bitpanda – Available mostly in the EU
- CoinCorner – Available mostly in the EU
- Swan – Available only within the USA
Crypto.com is one of the industry leaders when it comes to the number of features any one platform offers. And again this can be seen with the recurring buy feature just released on the crypto.com phone app.
Users of crypto.com can now automate their Bitcoin purchases starting as low as $50 USD.
At the moment, recurring purchases can only be done on BTC using a credit card in the app wallet, and with a maximum of 5 recurring buys per month.
Purchase frequency can be set weekly, bi-weekly and monthly basis, and with credit card purchase monthly limit starting from $500 going all the way up to $20.000 depending on the amount of MCO user account is holding.
After recurring buy is set, the chosen amount will be put into Bitcoin and the stack of Bitcoins you have keeps growing, while you can sit back and enjoy as crypto.com does all the work for you.
Coinbase has allowed recurring purchases to be made for rather a long time, and it’s very easy, and simple to get started. Simply start by choosing whether you want to use a website or app, and select which asset to buy.
Coinbase automatically asks whether you want to do recurring purchases, you can then choose to repeat this daily, weekly, or monthly basis, to finish the process just complete your purchase.
Coinbase will then automatically repeat that purchase until you change or cancel it.
Gemini allows users to set recurring buys where you schedule future purchases.
Users can make recurring purchases with USD across all order books. And recurring buys can be set on either a phone app or website, both ways have a very similar approach.
Simply select the amount you’d like to buy, select the frequency, and confirm your order. Bitcoins will now be delivered to your wallet automatically.
You can then manage your recurring orders from the dashboard, where you can also switch your recurring buys on and off at any time.
After the initial set up, Gemini keeps purchasing Bitcoin while you can enjoy your free time.
Coinmotion is one of the oldest Scandinavian Bitcoin companies, that also offers a wide variety of efficient services including recurring cryptocurrency purchases.
On Coinmotion these are called “monthly savings” and can easily be activated by simply navigating to the “savings” section in your Coinmotion account.
The most convenient way do to this is to set up recurring monthly payments directly from your bank, you can choose any day of the month, and a wide range of cryptocurrencies to begin with.
You can also set up a reminder, if you want to receive emails whenever you are about to make a deposit. After everything is set and done, Coinmotion will do all the work for you.
Bitpanda lets users set up personal savings plans for a variety of assets including Cryptocurrencies and precious metals such as Gold and Silver.
Setting up a savings plan with Bitpanda is simple and easy. And can be done on multiple fiat currencies including EUR, USD, CHF, and GBP. Users can even create multiple plans and change the details such as amounts and frequencies on the go any time they want.
After confirming the first payment the savings plan is all set and Bitpanda will keep rolling on the background and will invest for you without any hassle from your side.
CoinCorner allows dollar cost averaging into Bitcoin with a feature called Auto Buy.
Users can purchase small amounts of Bitcoin over time and save for the long-term while simultaneously reducing any concerns about short term price fluctuations.
Simply choose how often you want to buy, every day, weekly, or every month. And the minimum order amount starting from as little as £10.
Once auto buying is set up you don’t have to spend time manually tinkering, CoinCorner will keep buying Bitcoin while you can sit back and relax.
Swan Bitcoin platform was created for the purpose of recurring Bitcoin purchases.
And it is one of the easiest platforms for US citizens to get started with, all you have to do is to connect your bank account, choose the amount you want to purchase and make a deposit.
The platform will then automatically continue purchasing Bitcoin and send those coins directly to your chosen Bitcoin address.
The minimum required amount users can purchase is $5 and purchases can be made every week, month, or after each paycheck.
To sum up
Dollar-Cost Averaging (DCA) can be an incredibly effective strategy for a variety of reasons. On top of using it just for investments, a variety of trading bots and large funds also utilize this behavior when building trading positions, as with large amounts of money it’s impossible to enter and exit the market without affecting the price.
And speaking of just investing it can also be incredibly beneficial especially when you are new to Bitcoin. For example: when the price is down, $100 will purchase more Bitcoin, increasing the potential gain, while if the market turns around $100 will purchase fewer Bitcoins, reducing the overall risk.
That being said whether dollar-cost averaging into Bitcoin is something you want to participate, is up to you. However, there sure is no denying that DCA can also take a lot of anxiety from investing as you are not committing any significant amount of capital at one time to any specific cryptocurrency. Not to mention you can always change the investment amount as you go.
Note that investments involve risk and profits are not guaranteed.
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