Coinbase, the best exchange for beginners, also makes it really simple to dollar cost average your crypto purchases.
By making small but regular purchases, you can average out the swings by buying cryptocurrencies even when people aren’t looking at the graphs. Buying during “down periods” is wise, and by automating this process, you could make healthy profits in the long run.
Fortunately, Coinbase has a built-in feature for dollar-cost averaging, where you can pledge regular amounts towards buying your favourite cryptocurrencies.
- A Coinbase account (sign up with our link and get $10 Bitcoin for free)
- A payment source; i.e. debit card, bank account
I’m assuming you’ve already registered. If you haven’t, go through the usual motions of signing up to anything and once you’re done, you’ll be able to continue.
Log in to the dashboard
On the dashboard you’ll be able to view your current portfolio. On this board there’s also a buy/sell button, click this.
Toggle the “one-time purchase”
It’s not super clear, but if you click on one-time purchase, you’ll be able to switch this to a regular purchase.
Choose how often you’d like to Buy
You can choose from an array of intervals. This is really up to you and what best fits your requirements.
Each intervals with have their own gains and pitfalls. With monthly buys your bank statement wont be plagued with too many purchases, but you could miss vital points in the graph.
Confirm your order
Hit the Preview Buy button, and you’ll see your order. At this point its important to note that you will be charged purchase fees every time.
To combat having too much expenditure on fees, consider buying larger amounts less often.
Smaller amounts will have quantitatively less fees, but percentage-wise they’re quite expensive.
Finalize your transaction
You’ll have to confim the transaction with your bank, but once you’re done, you’ll instantly receive your first purchase.
Monitoring and/or cancelling your recurring purchase
Once you’re signed up, you can monitor your recurring purchase in the Portfolio tab.
On the right-hand side, you’ll see your recurring purchase. Click this, and you’ll see you order.
If you wish to cancel, cancel.
Dollar-cost averaging is a great way to invest in cryptocurrencies.
Coinbase provides a simple utility to do this. Login to Coinbase, go to Buy/Sell, select the interval you’d like, and purchase.