Read on to learn more about why a Bitcoin savings plan is probably a good idea and how you can set one up with Coinfinity.
A Bitcoin Savings Plan is an automated savings plan that allows you to invest in Bitcoin on a regular basis and build up a long-term fortune in the cryptocurrency.
To set up a Bitcoin savings plan, all you need to do is register with a Bitcoin broker like Coinfinity and you can create a savings plan within a few minutes. The payments into the savings plan are usually made via a standing order, so you can save in Bitcoin completely automatically.
Save in Bitcoin? Does that make sense? Is that even possible given the high volatility of the cryptocurrency?
These are all valid questions for investors who want to invest in Bitcoin but don't know how best to go about it.
Many Bitcoin enthusiasts praise Bitcoin savings plans as the most user-friendly and secure way to invest in Bitcoin.
The reason is quite simple: a Bitcoin savings plan has many advantages over a one-off Bitcoin investment.
Let's now look at the advantages of the Bitcoin savings plan over one-off Bitcoin investments.
This allows you to benefit from the average cost effect (also called the cost-averaging effect) and build a substantial Bitcoin portfolio over the long term, with fewer fluctuations in value than a one-off Bitcoin investment.
The main argument for creating a Bitcoin savings plan is the cost-averaging effect.
The cost-averaging effect is an investment strategy in which one regularly invests the same amount of euros in an asset, regardless of the market price.
The idea is that you can reduce market volatility by continuously buying the asset at an average price to build your portfolio over time.
As Bitcoin is a relatively volatile asset, the digital currency lends itself well to the cost-averaging effect as an investment strategy.
Now let's look at what the cost-averaging effect has done for Bitcoin investors.
If you had set up a Bitcoin savings plan three years ago with a monthly deposit of €100, your Bitcoin portfolio would be worth over €9,000 today.
This corresponds to a three-year return of almost 160%. By contrast, if one had invested in Bitcoin exactly three years ago with a one-off purchase at a price of $10,978, one would only have generated a return of around 75%.
If one had already invested in a Bitcoin savings plan five years ago, the Bitcoin portfolio would be worth about €27,704 today. This corresponds to a five-year return of about 360%.
In this investment horizon, a one-time purchase five years ago would have generated a return of approx. 640%.
These two examples show that a well-timed one-off investment in Bitcoin can outperform a savings plan, while savings plans tend to do better in volatile markets.
Bitcoin savings plans, however, are less affected by market volatility, which in many ways makes them more beginner-friendly, as you won't face large fluctuations in portfolio value.
Coinfinity is a leading Bitcoin broker that has been allowing investors to invest in Bitcoin since 2014. The Austrian-based company also allows investors to set up a Bitcoin savings plan to save Bitcoin regularly and conveniently.
How to set up a Coinfinity Bitcoin savings plan:
And that's it!
As soon as Coinfinity receives your first payment by standing order, you will receive your first Bitcoins in your wallet via a savings plan.
You have to decide whether a Bitcoin savings plan is the right investment approach for you.
However, if you want to invest in Bitcoin on a regular and automated basis to build up a Bitcoin portfolio in the long term, the Bitcoin Savings Plan might be the right approach.
You can set up a Coinfinity Bitcoin savings plan for free. Only the usual 1.5% service and mining fees apply.
Yes, your Coinfinity Bitcoin savings plan can be cancelled at any time by simply cancelling your standing order with your bank. That's all you need to do.
No. A savings plan is only available for Bitcoin (BTC) by our own conviction.
