Coinstash: What Are the Benefits of Recurring Crypto Investments?

In the early days of crypto trading in Australia, it seemed like a lot of investors were treating cryptocurrency more like a property investment – you saved up, made a single bulk purchase and then held on to that investment while you waited for it to increase in value. But over time, savvy crypto traders in Australia started to realise the potential of actively trading in cryptocurrency. This approach is closer to a stock market investment, where you actively buy and sell shares to increase the value of your portfolio. And while this approach can be far more profitable, it does take more time, more effort, and it can be quite stressful.

Fortunately, there is now a third option for crypto traders in Australia: recurring investments. The recurring investments method allows a crypto trader to make routine purchases in incremental amounts, which gradually increases and diversifies the traders’ portfolio. But where did the concept of recurring buys come from? Is it based on a reliable process? And what are the benefits of recurring buys for Bitcoin traders in Australia?

What are Recurring Cryptocurrency Investments?

Recurring buys started as a method for increasing investments in more traditional assets such as shares in the stock market. Stockbrokers found that clients could gradually build up an impressive investment portfolio by making small but regular investments, which over time deliver a result known as compounding returns[1]. Compounding returns produce a snowball effect – they start off minimal but continue to grow exponentially.  

Recurring cryptocurrency investments follow the same principle. Bitcoin traders in Australia select an amount to be invested and a frequency for how often they want to make an investment purchase. Their crypto broker will then automatically make recurring purchases on the crypto traders’ behalf. This strategy is based on a process called Dollar Cost Averaging (DCA), which means you opt to buy a set amount at regular intervals. DCA helps to protect investors from price fluctuations in cryptocurrency value because you’re not investing all your money at a particular point in time. For example, you may set up a $15 recurring buy to take place every week. In the first week, the price may be steady, in the second week, it has gone up, and in the third week, it has dropped. But because you’re only investing small amounts, the price fluctuations are less important than if you had chosen to invest $10,000 during the second week when prices were high.

When you set up a recurring buy through a crypto trading platform, it becomes as routine and manageable as paying a bill via direct debit. But instead of incrementally paying down debt, you’re incrementally building up wealth.

What are the Benefits of Recurring Cryptocurrency Buys?

Many cryptocurrency traders now consider recurring crypto buys to be a solid long-term goal with measurable benefits. This is because recurring cryptocurrency investments help to:

  • Remove emotion from the equation: Emotion can be a dangerous thing when it comes to crypto trading in Australia. Emotions can lead to investors making knee-jerk decisions, opting to buy or sell as a panicked reaction rather than as a measured response in consultation with a predetermined crypto trading plan. A recurring buy also reduces the stress that some people experience when a particular cryptocurrency experiences routine price fluctuation. You have the reassurance that your investments are spread out across both peaks and troughs, so you’re less likely to find yourself investing significant amounts at top market value.
  • Steadily grow your cryptocurrency investment: Property prices in Australia have seen a rapid increase over the past few decades, with the national average house price now just under $900,000. With so much emphasis on saving a 20% house deposit, many people may feel restricted in how much they can invest in cryptocurrency. But with a recurring buy, you’re not committing all of your savings – for many, the cost of a recurring buy may be less than what they spend on coffee each week. But those small, routine investments will result in a steady increase to your cryptocurrency portfolio. This allows you to grow your cryptocurrency investments without having to compromise on other asset purchases. 
  • Diversify your cryptocurrency investments: Diversification is frequently advocated by experienced crypto traders in Australia as a wise way to minimise risk and build wealth. A recurring buy can also help you to diversify your crypto wallet by investing in multiple cryptocurrency tokens. So, rather than having all of your investment in Dogecoin or Ripple, you can have growing investments in Bitcoin, Ripple, Ethereum, Dogecoin or whichever cryptocurrencies you’d like.

Set Up a Recurring Buy with a Trusted Australian Crypto Broker

If you want to set up a recurring buy for cryptocurrency, then it’s important to choose a trusted crypto platform with industry experience. Coinstash is a registered Australian crypto trading platform with SSO encryption and no hidden fees. Our user-friendly platform and dedicated customer service team make it easy for crypto traders (whether experienced or novice) to set up recurring buys. With a Coinstash recurring buy, you choose the amount and you choose the frequency – we’ll take care of the rest for you.


[1] https://www.investopedia.com/articles/investing/100615/investing-100-month-stocks-30-years.asp

Disclaimer: This article was submitted by Coinstash. The content and views expressed in the articles are those of the original authors own and are not necessarily the views of Crypto News. We do actively check all our content for accuracy to help protect our readers. This article content and links to external third-parties is included for information and entertainment purposes. It is not financial advice. Please do your own research before participating.