What is a Recurring Buy?
A Recurring Buy is a strategy used by investors in the cryptocurrency market to purchase digital assets at regular intervals. This approach is part of an investment method known as "dollar-cost averaging." The main goal is to reduce the impact of volatility on the overall purchase of cryptocurrencies.
How Does Recurring Buy Work?
When setting up a Recurring Buy, investors decide on a specific amount of money they want to invest and the frequency at which they want to invest—whether daily, weekly, or monthly. The exchange platform then automatically buys the chosen amount of cryptocurrency at the set time, using funds from the investor's account.
Benefits of Recurring Buy
This method offers several advantages. Firstly, it encourages financial discipline by making investing an automated process. Secondly, it reduces the risk and stress associated with attempting to time the market. Thirdly, by spreading out the purchase dates, investors can potentially lower the average cost per coin over time.
Where to Set Up a Recurring Buy?
Most mainstream cryptocurrency exchanges and all-in-one platform services support Recurring Buys. To set it up, users simply select the cryptocurrency they wish to purchase regularly, specify the amount and frequency, and then authorize the platform to conduct these transactions on their behalf routinely.
Considerations Before Starting a Recurring Buy
Before initiating a Recurring Buy, it's crucial to assess your financial situation and investment goals. Consider the volatility of the cryptocurrency market and ensure that you have enough funds to maintain your investment strategy over your desired period without affecting your financial health.
