What is a Bitcoin Savings plan?

A Bitcoin savings plan is the ideal way to invest in Bitcoin long term. You benefit from the Dollar-Cost-Average (DCA) effect and don’t have to worry about trading Bitcoin, but you can sit back, relax, and expand your Bitcoin holdings through regular purchases.

In this blog post, you will find out what a Bitcoin savings plan is, why it makes more sense than trading Bitcoin, how to use the DCA effect, and how to create a savings plan in the Relai app.

What is a Bitcoin savings plan, and how does it work?

A Bitcoin savings plan is an automated process in which you send money from your bank account to a Bitcoin broker who buys Bitcoin for you. By making regular purchases, you benefit from the dollar-cost-average (DCA) effect and can increase your Bitcoin portfolio over the years.

A Bitcoin savings plan can be set up either monthly, weekly, or even daily. The idea behind it is to absorb the ups and downs of the Bitcoin price. Instead of trading and thus taking on more risk, you can invest in an asset in a passive way. With it, investors absorb the volatility of Bitcoin much better.

As the fundamentals of Bitcoin – the limit of 21 million Bitcoin and the disinflationary behavior due to the Bitcoin Halvings – allow investors to save for the long term. As the purchasing power of Bitcoin is steadily increasing, the Bitcoin savings plan is probably the best investment strategy to protect against any financial shortcomings in the future.

In addition, the Bitcoin savings plan also saves investors a lot of time, as you no longer have to spend time in front of a screen studying the market 24/7.  You set up the savings plan once and can buy Bitcoin through automated purchases.

Furthermore, you can set up several savings plans for different reasons (savings, a nest egg, a personal goal, or savings for children).

When does a Bitcoin savings plan make sense?

The great thing about a Bitcoin savings plan is that it makes sense for every type of investor. This can be the Wall Street banker but also the student from Berlin. Both have the same options and can create a Bitcoin savings plan.

What changes are the priorities. While the banker may see the savings plan as an investment for his children and have a larger budget, the student needs the Bitcoin savings plan more as a means of saving for the next few years.

Instead of putting money into speculative shares, which often come with hidden fees on platforms, you would rather invest your savings in Bitcoin and own the underlying asset outright. There are providers in the Bitcoin world, Relai being one of them, which allow you to save your Bitcoin in a self-custody wallet.

However, a Bitcoin savings plan is less suitable if you like the adrenaline rush and the dangers of Bitcoin trading. There is no right or wrong between the two strategies, but the Bitcoin savings plan investor is certainly investing with a longer time horizon and planning for the future.

From this perspective, a Bitcoin savings plan is the ideal tool to benefit continuously from the increasing purchasing power of Bitcoin and save for future personal goals or events.

What is the dollar cost average effect?

With the dollar-cost average effect, you buy a fixed amount of an asset at regular intervals, regardless of the current market price.

For example, you could invest in Bitcoin with the dollar-cost average effect by buying €25 worth of Bitcoin every week. Over the course of a year, you would have invested €1,300 in Bitcoin. If the price of Bitcoin increases during that year, the total amount of your Bitcoin investment will also increase.

Investors who use the dollar-cost average effect are less affected by market volatility, as purchases are made during the highs and lows, adding up to the average price.

In addition, the dollar-cost average effect allows Bitcoin investors with little available investment capital to build up a large Bitcoin position in their portfolio over time.

As a result, the dollar-cost average effect also allows younger generations to save early on with a small budget and take their first steps in the world of investments. This experience will pay off later, especially when the purchasing power gained over time through the Bitcoin savings plan offers them further opportunities.

How to set up a Bitcoin savings plan with the Relai app

Setting up a Bitcoin savings plan with Relai is incredibly easy and only takes a few minutes of your time. It’s as simple as that:

• Download the Relai app.
• Open the app, go to the menu and open the “Buy” tab.
• Enter 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 you need to set up a Bitcoin savings plan with Relai. From now on, you, too, will be able to benefit from the dollar-cost average effect and save in Bitcoin for the long term.

To set up a Bitcoin savings plan today, download Relai now.

FAQs

What is a Bitcoin savings plan?

A Bitcoin savings plan is an automated process in which you send money from your bank account to a Bitcoin broker who buys Bitcoin for you. By making regular purchases, you benefit from the dollar-cost-average (DCA) effect and can increase your Bitcoin portfolio over the years.

Does a Bitcoin savings plan still make sense? 

A Bitcoin savings plan still makes sense, especially if you buy Bitcoin continuously and constantly with the same amount. The more consistently and longer you do this, the more you benefit from the dollar-cost-average effect.

Who is a Bitcoin savings plan suitable for?

A Bitcoin savings plan is suitable for every investor, regardless of whether you have a small or large investment capital. In both cases, you can benefit from the savings plan and Bitcoin’s purchasing power.

Can I create a Bitcoin savings plan with Relai?

Yes, you can! We’ve made creating a Bitcoin savings plan in minutes as easy as possible with the Relai Bitcoin app. All you have to do is install the Relai app, create the Bitcoin savings plan, and set up a recurring transfer order with us. From then on, you will save regularly in Bitcoin.

Can you invest in Bitcoin monthly?

Thanks to a Bitcoin savings plan, you can invest in Bitcoin monthly, weekly, or even daily. This allows you to benefit from the dollar-cost-averaging effect and to recover your purchasing power over the coming years.