The term is ‘dollar cost averaging’, but of course you can also do this with euros ;) Dollar cost averaging (DCA) means that you buy a fixed amount of bitcoin at a fixed time. The big advantage of DCA is that you can largely ignore the daily price movements.
Since you’re spreading your chances, you are less dependent on the price. This way of investing is rather relaxed! If you are just starting out in the world of bitcoin and cryptocurrency, DCA is an excellent strategy for you.
An example: suppose you buy 10 euros worth of bitcoin on every last day of the month, for eight months. You start in March 2019 and end in October 2019. This is how an overview of your purchases would look like:
2019 - march
|
0,002799723
|
april
|
0,002145466
|
may
|
0,001279213
|
june
|
0,001135589
|
july
|
0,001164332
|
august
|
0,001162510
|
september
|
0,001415871
|
oktober
|
0,001246392
|
You’ve spent 80 euros in total, in exchange for 0,01234909933 bitcoin. Since you’re spreading your investment, you’re more in line with the general trend of the price instead of its extreme highs and/or lows. At the moment of writing, your 80 euros are worth more than 90 euros, so by sticking to a strategy you’ve already made a profit!
With the BLOX app, you can deposit an amount in euros to top up your credit. Then, you’re all set to invest 10 euros each month. Or maybe a different amount? It’s all up to you!