How to Set Up a Bitcoin Savings Plan
Read on to learn what a bitcoin savings plan is, why it’s probably a good idea to start one, and how you can set one up within minutes.
What is a Savings Plan?
A savings plan is a (typically automated) process of putting funds into a savings or investment account to save money for a specific financial goal, such as buying a house or a car.
Many Bitcoin proponents believe that Bitcoin is the best savings technology of the 21st century.
In light of its mathematically proven limited supply and hard-coded deflationary feature, Bitcoiners believe that its value will continue to go up as the cryptocurrency competes with gold and similar assets as an alternative store of value to traditional currencies.
What’s more, by putting money into bitcoin on a regular basis, you are deploying a popular investment strategy called dollar-cost averaging.
What Is Dollar-Cost Averaging?
Dollar-cost averaging involves buying a fixed amount of an asset at regular intervals regardless of the prevailing market price.
For example, you could dollar-cost average bitcoin by buying 25 euros worth of bitcoin every week. Over the course of a year, that would amount to 1,300 euros invested in bitcoin. Additionally, provided that the price of bitcoin increased in that year, so would the total amount of your bitcoin investment.
If you would have bought 25 euros of bitcoin every week for the last three years, your bitcoin holdings would now be worth 21,775 euros.
Investors who dollar-cost average are less affected by market volatility as purchases are made during price highs and lows, averaging out the buy price.
Moreover, dollar-cost averaging bitcoin allows investors with little available investment capital to build a large position in the digital asset over time.
Setting Up a Bitcoin Savings Plan with Relai
Setting up a bitcoin savings plan with Relai is incredibly simple and only takes a few minutes of your time. The process is simple:
- Download the Relai mobile app.
- Type in how much you want to save in bitcoin each week or month.
- Set up a recurring bank transfer to Relai.
And that’s it!
That’s all it takes to set up a bitcoin savings plan with Relai.