Investing in crypto can be rewarding but also incredibly stressful — especially when things aren’t going too well. At the time of writing, Bitcoin is down over 20% in the past week after an incredible run.
It’s fair to say that things can be… up and down.
So it’s a good idea to take the stress off one’s shoulders. Let’s call it ‘investor delegation.’ Some are investing in things like Grayscale, and letting institutions do the investing for them. Others are varying their portfolios.
But there’s another way: recurring buys.
What are recurring buys?
Quite simply, recurring buys are repeated, automatic purchases of cryptocurrency. By using dollar-cost-averaging (DCA) — investing a fixed amount of cash at regular time intervals, used commonly by investors — investing can be less risky. And it’s a good way of avoiding price fluctuation. Recurring buys use DCA to automatically carry out trades.
Japanese crypto exchange, biFlyer, now has an option to make this all happen for investors; a program essentially does all the work.
Recurring Buy is now available on the bitFlyer app! 🎉🎊
Easily build your crypto portfolio by scheduling daily, weekly, monthly, or semi-monthly purchases.
Set up a Recurring Buy by Feb 3 for free cashback and a chance to win $100 in BTC. Details 👇https://t.co/VmYsy18EqN
— bitFlyer USA (@bitFlyerUSA) January 20, 2021
Daily, weekly, monthly, or semi-monthly cryptocurrency purchases, can be set up to build a long-term crypto portfolio.
Why should I do it?
Investing in cryptocurrency involves a lot of thinking. The idea is that stressful decisions are taken out of the hands of the investor as investing in crypto involves a lot of thinking.
With recurring buys, you can put the stressful decisions into the hands of a computer that knows the market.
It will likely make your investment more profitable, too. With DCA, the idea is that the overall volatility of the target asset is reduced. As the price of crypto varies each time a periodic investment is made, it’s not as likely to be as volatile. But a badly timed, a big investment is more likely to get you into trouble.