Aussie Exchange, CoinJar Debuts Recurring Buys for Dollar Cost Averaging

By Ibiam Wayas January 21, 2021 In Australia, Coinjar, Crypto News

Investing in cryptocurrencies has become easier and more convenient than it was over the past years. One of the leading Australian exchanges, CoinJar, has launched a “recurring buy” function on its platform, which will allow Australian crypto investors to purchase their favorite digital currencies through the “dollar cost averaging” or DCA approach. This is an ideal investment strategy for buying cryptocurrencies, especially when the market is ranging or trending in a bearish condition.

CoinJar now Supports DCA Strategy

The recurring buy is a DCA investment approach that allows investors to purchase a particular amount of a cryptocurrency more than once within an extended period of time. The dollar-cost averaging strategy is currently supported on CoinJar Bundles Recurring Buys, according to the announcement on Monday. Users can choose to set up recurring buys on a weekly, fortnightly, or monthly basis through the CoinJar iOS or Android app.

The service is currently available for the exchange’s Australian users only. CoinJar noted that the service would be rolled out for the customers in the United Kingdom (UK) soon.

DCA explained

Dollar-cost averaging is a popular strategy used by many players in the cryptocurrency market. Using this strategy, an investor would divide the total amount of money he/she wants to invest in either Bitcoin (BTC), Ether (ETH), or other cryptocurrencies. Rather than once, the divided funds will be periodically invested in the chosen cryptocurrency to reduce the impact of the asset volatility on entire purchases made.

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Basically, this strategy helps investors to avoid buying cryptocurrencies at the top. However, this investment strategy may not be ideal when the market enters an uptrend. The price of the cryptocurrency will continue to go higher during uptrends; hence, using DCA will only fetch you the cryptos at a higher rate – except you decide to wait until the market calms.

Ibiam Wayas
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Ibiam Wayas

Ibiam is an optimistic crypto journalist. He loves to associate with like-minded individuals and collaborate with them on similar projects. He spends much of his time honing his writing and critical thinking skills.

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