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Crypto • Beginner
Team CoinSwitch
•
10 February 2023
Do you always have plans to invest in crypto but are too broke by the end of the month to do it? Do you want to find a way to keep your crypto portfolio growing without burning a hole in your pocket? If so, you’ve come to the right place. Because the Recurring Buy option can help you fulfill many of your plans without letting you feel the pinch.
Grow your crypto portfolio with recurring buy
Recurring buying is a trading strategy. Anyone can use it to grow a cryptocurrency portfolio very easily. However, it is important to remember that cryptocurrency investing is highly speculative and comes with a high degree of risk. So, don’t forget to speak to a financial expert before making investment decisions.
What is a Recurring Buy?
A recurring buy is essentially a trading strategy. It is also known as Dollar-Cost Averaging (DCA). It involves buying a fixed amount of a specific cryptocurrency at regular intervals, regardless of the price.
By committing to invest a set amount of money at regular intervals, you can average out the cost of your investment over time. It also helps you reduce the impact of volatility. Recurring buys also can be a good way to build a diversified portfolio while also reducing the risk of timing the market.
A recurring purchase allows you control over the amount of crypto and the frequency of your spending on it. It is a stress-free alternative to trying to time the market and saves a substantial amount of time. It is a great way to consistently expand your cryptocurrency portfolio and aim for long-term growth.
The biggest plus is that if you’re forgetful like me, you no longer need to shoulder the responsibility of remembering to set money aside.
Benefits of using the recurring buy strategy
There are many benefits of using a recurring buy strategy. Some of the most prominent ones are discussed below.
Convenience
Because making purchases with Recurring Buy is computerized, you don’t need to remember to do it. In addition, you may opt to make purchases on a weekly, bi-weekly, or even monthly basis. You could also decide in advance what crypto tokens you would like to acquire.
Steady portfolio growth
With Recurring Buy, your cryptocurrency holdings will progressively increase over time as you make purchases at regular periods. Doing this averages out the cost and protects your overall portfolio from the effects of a turbulent market.
Easy access to the ecosystem
Recurring Buy plans let you stock up on Bitcoin at all times. In doing this, they offer you easy access to the crypto ecosystem. With it, you will always have some crypto for staking, yield farming, trading, launchpads/pools, or NFT purchases.
How to set up a Recurring Buy plan
You could set up a Recurring Buy investment by following the five steps below.
1. Choose a crypto token.
Launch the app you wish to use (hopefully CoinSwitch!) and sign in. Select the crypto you want to invest in and enable Automatic Purchases on the page.
2. Select your preferred fiat currency.
Pick your preferred domestic currency from among more than forty different options.
3. Set up the frequency.
You can choose between weekly, fortnightly, and monthly intervals. Additionally, you may choose the day and hour when you want your recurring purchase to go through.
4. Select your payment method.
You could choose between credit cards, such as Visa and Mastercard, and debit cards. You can add a new card to your collection or continue using one you’ve used before.
5. Confirm your order details.
You usually have a minute to verify your order before the price and amount of cryptos are modified. Tap refresh for the latest market price. After checking the order data, you’re done. You can find your automated purchase plan amidst all other previous orders. That’s it, you’re all set to create the best long-term crypto portfolio for you.
Conclusion
To sum it up, recurring buying, also known as dollar-cost averaging, is a trading strategy. It involves regularly investing a fixed amount of money regardless of the current price. While it does help reduce the impact of volatility, don’t forget to keep researching market trends and weighing the risks associated with your crypto investments. And of course, always consult a financial advisor before making investment decisions.
FAQs
What is a Recurring Buy?
Recurring buy, also known as dollar-cost averaging, is a trading strategy. It involves buying a fixed amount of a specific asset at regular intervals, regardless of the price. It aims to average out the cost of investment over time and reduce the impact of volatility.
How do I use Recurring Buy?
To use the recurring buy strategy, select a crypto to invest in, set a fixed amount to invest regularly (e.g., weekly or monthly), set up recurring buys on a cryptocurrency exchange or platform, and monitor your portfolio over time. On CoinSwitch, this feature is called a Systematic Investment Plan. That said, don’t forget to do your research and understand the risks of crypto investing before making any decisions.
Is Recurring in crypto good?
Whether recurring buy plans work for you, usually relies on your investment plan and risk tolerance. It can be a good way to reduce the impact of volatility on the crypto market, but there are other ways to get larger returns if you are okay with the risk. The key to deciding whether to choose the recurring buy option is research. And as always, make sure you understand the risks associated with investing in cryptos before making investment decisions.
How do I grow my crypto portfolio?
There are several ways to grow the best crypto portfolio. You could use hold long-term, actively trade, diversify your portfolio, and research market trends and new projects. However, it’s important to remember that crypto investing comes with a high degree of risk.
Disclaimer: Crypto products and NFTs are unregulated and can be highly risky. There may be no regulatory recourse for any loss from such transactions. The information provided in this post is not to be considered investment/financial advice from CoinSwitch. Any action taken upon the information shall be at the user’s risk.
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