What are recurring buys?

Modified on Wed, 9 Sep at 4:25 PM

A recurring buy is a tool to schedule your regular purchases periodically, allowing you to automatically obtain an average quoted price. With this tool, you reduce the impact of market volatility on your average buy price, also saving time and effort.

You can schedule your buys periodically on a daily, weekly, or monthly basis. The platform will execute the buy for the amount in € you've indicated on each corresponding date from the moment you schedule it.

Example: Imagine you have €12,000 available to invest in Bitcoin, with a reference price of approximately €68,000 per BTC. You can choose between an instant buy for the full amount or split that same amount into 12 monthly recurring buys of €1,000 each. The final outcome depends on how the price evolves during that period:

Market scenarioSingle buyRecurring buy
Bear market
(price drops after your first buy)
You buy all €12,000 at once, before the drop: you pay the highest price of the period.Several buys are executed at the lower price: your final average price results in being lower than with a single buy.
Bull market
(price rises after your first buy)
You buy all €12,000 at once at the lowest price of the period: this proves to be the cheapest option.Some of the buys are executed at the higher price: your final average price results in being higher than with a single buy.

A recurring buy does not guarantee a better outcome: it doesn't eliminate market risk but rather reduces the impact of the exact moment you decide to enter. Therefore, before choosing between a single buy and a recurring buy, it's advisable to assess your investment horizon and your tolerance for volatility.

Additionally, when scheduling a recurring buy, you can select the option to deposit buys directly into EARN. This way, you don't need to keep track of your buys or transfer the balance to Bit2Me's staking service for them to start generating returns from minute one.

Fees: Recurring buys have the same fees as an instant buy, and the spread is applied just like any other operation. There is no discount for scheduling them. For details, refer to Wallet operation fees: buys, sells, and exchanges.

For more information on this investment strategy, you can consult the article How to implement a Dollar Cost Averaging (DCA) strategy.

⚠️ IMPORTANT
  • Each recurring buy is executed using the same mechanism as an instant buy, at the current market price on the execution date.
  • Since the proforma is not reviewed at the time of each recurring execution, the amount of cryptoasset received may vary slightly between one execution and another.

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