The one piece of advice that every crypto pundit will suggest to traders is “time the trading market right”. The advice rings true for any trader but especially for digital assets investment traders given the extreme volatile nature of crypto. But, the problem is, to find the perfect timing you need to have a close watch on the market every now and then. And, the whole process is extremely time-consuming. It’s too arduous to squeeze time out from your Zoom calls and tight deadlines every single day to study the trading market. And when you can’t do that you either end up with impulse decisions or you become too apprehensive to join the market. But, the whole picture of crypto trading and digital currency investment doesn’t need to be that grim always- courtesy crypto recurring investments.
Crypto recurring investment makes digital assets investment easier for time-strained investors and traders. Put simply, this particular digital assets investment process relieves you from the hassle of keeping a constant watch on the market. The post below offers a brief on the core concept of crypto recurring investment.
Crypto recurring investment
Crypto recurring investment works the same way as traditional recurring investments- just this time, it’s particularly for digital assets investment or crypto. In crypto recurring, you will invest a particular sum of money in crypto on a regular basis rather than allocating a huge lumpsum amount at one go. The frequency of purchase could be every week or every fortnight, or every month. For further convenience, you can set up an automated process of purchase that will deduct the set amount of money at every specified interval on its own.
At its core, crypto recurring involves the process of DCA or Dollar-Cost Averaging. When you opt for recurring in crypto, you have the opportunity to fix the crypto you wish to buy, the amount at which you wish to purchase, and also the frequency of purchase. Interested investors can set the crypto recurring investment process on the same crypto exchange where they trade. Crypto exchanges generally charge a percentage of commission for the digital assets investment recurring service.
You can set the digital assets investment recurring process for as many cryptocurrencies you want, based on the range of availability of cryptos in your chosen exchange.
Pros of crypto recurring investment
There are multiple advantages of opting for recurring digital assets investment service.
Protection from market volatility risks
This is surely the biggest advantage of signing up for the digital assets investment recurring process.
The recurring process allows you to spread out your entire investment sum into little manageable chunks that helps to smoothen out the dramatic market fluctuations for your investment- ensuring that you are not placing the whole sum in a single basket.
No need for constant monitoring
Another major advantage of digital assets investment recurring process is that it relieves you from the demand of constant monitoring of the market. In this case, you will be allotting a fixed amount of sum every month, regardless of the market condition. Thus, with the digital assets investment process you won’t have to check how far the market has moved every now and then. It’s because, whatever be the market situation, your investing amount would stay fixed. This in turn, helps to prevent impulse buys.
Ability to capitalize on market growth
Crypto prices tend to rise in value over time. Long-term recurring accounts would thus help you to enjoy higher returns with low investment over time.
Easy on the wallet
With digital assets investment recurring, you won’t need to shell out a small fortune all at once. In this case, you have the room to disperse an affordable amount of money at specified intervals. The process is gradual but steady and always easy on your wallet.
Disciplined investment strategy
As digital assets investment recurring process makes you allot a fixed sum at fixed intervals, it helps to bring discipline in your investment journey.
How to conduct a crypto recurring process?
As mentioned above, you will have to specify 3 things when you opt for digital assets investment recurring with your chosen crypto exchange- the crypto you wish to purchase, frequency of purchase, and the sum of money that you wish to allot for the recurring digital assets investment. Some exchanges allow you to set time and day of purchase as well for every interval or frequency you set for the recurring process.
In most of the cases, you will be able to use fiat money to make the purchase for the recurring digital assets investment. If you have plans to automate the process, you will have to connect your payment processing link with the exchange to ensure automatic deduction of money at pre-specified intervals.
However, some exchanges offer an additional recurring method that might not work with fiat and you have to use stablecoins here to make the purchase.
Step-by-step guide on setting recurring investment for crypto
- Go to your chosen crypto exchange and click on payment option for digital assets investment
- Select the cryptocurrency you want to invest in for recurring digital assets investment. You can choose multiple cryptos but as you are just starting out, begin with one
- Click on “Recurring Buy” to activate the service
- Now, it’s time to select fiat currency for recurring digital assets investment. Based on your choice of exchange, you will be able to choose from a wide range of at least 40 fiat currencies. Go for your local currency
- Next, you will have to specify the frequency or interval of your crypto recurring investment
- Click on the tab that says “Date”, and set the interval for the recurring digital assets investment- monthly, bi-weekly, or weekly. If available and if you want, specify the time and day as well
- Then, you will have to specify a payment method. If you are willing to use the existing card that is linked with the exchange, select that. You would also be able to add an additional card especially for the recurring digital assets investment service
- Now, we are at the last step of setting up your crypto recurring investment process. Check the order details to ensure all the details entered are in perfect order
- Click on “Confirm” to confirm the recurring service
And, you are ready to invest in a crypto recurring account.