There are myriad ways to invest in Bitcoin...
You could make one large investment and “HODL” it.
You could trade in and out of Bitcoin like a day-trader.
You could try to time the market and buy the dips.
Or you could stack small amounts of Bitcoin using dedicated cashback apps.
But there is one Bitcoin investment strategy that stands out the most.
That strategy is called dollar-cost averaging.
What Is Dollar-Cost Averaging (DCA)?
Dollar-cost averaging (DCA) refers to buying a fixed dollar (or pound) amount of an asset at regular intervals over a long period of time.
The idea is to “smooth out” volatility by buying a fixed amount every week or month regardless of what price the asset, security, or fund is trading at. For example, if you were to invest £20 per week into Bitcoin, you would end up catching both price dips and peaks, which means you would buy more BTC when the market price is lower and less when it’s higher.
As a result, you are averaging out your Bitcoin investment and giving yourself the best chance to generate a potentially sizeable return on investment (ROI) over the course of several years.
Benjamin Graham, the “father of value investing” and author of the seminal investment book ‘The Intelligent Investor,’ once said:
“[Dollar-cost averaging] has worked extremely well for those who have had the money, the time and, the character necessary to pursue a consistent policy over the years regardless of whether the market has been going up or down. If you can do that, you are guaranteed satisfactory results in your investments.”
Dollar-cost averaging has been popular among traditional investors for decades and has turned many investors into wealthy individuals.
Today, the crypto markets have created a renaissance for dollar-cost averaging as volatile digital assets, such as Bitcoin, are ideal for dollar-cost averaging as an investment approach.
Through the simple act of regular making fixed-amount purchases of Bitcoin, you can potentially benefit from the power of compounding as you receive returns on your initial investment plus on the returns you have already made, and on the new funds you put in at each interval.
Over the course of several years, this is poised to turn your small, regular investments in Bitcoin into a sizeable mound of (digital) gold
How to Dollar-Cost Average Into Bitcoin in the UK
The good news is that you can dollar-cost average into Bitcoin on autopilot using Vimba’s Auto Investing Service.
You simply sign up, link your crypto wallet, set up recurring bank payments, and off you go! As soon as your bank payments arrive at Vimba, you will receive your BTC directly in your crypto wallet in a fully-automated and hands-off manner.
Vimba is the only company in the UK that offers this service and, best of all, it is super easy to get started.
All you have to do is:
1. Sign up and verify yourself in two minutes
2. Set up a standing order bank payment with a unique reference code we provide
3. Choose your crypto distribution if you want to save both Bitcoin and Ethereum
4. Sit back, relax, and watch crypto arrive in your wallet after each payment
Don’t miss out on the next potential Bitcoin rally, set up automatic dollar-cost averaging and start investing in Bitcoin today!
To start dollar-cost averaging into Bitcoin AND to receive your first transaction free of charge, sign up to Vimba now!