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Want to buy Bitcoin? Recurring purchasing is the way

EC
Elisa Campaci

5 min

Buying Bitcoin with recurring purchases: why it pays off

Why you should consider buying Bitcoin regularly explained in 3 charts

Buying Bitcoin through recurring purchases is cheaper than spot buying by constantly looking for the perfect moment to enter the market (spoiler: it does not exist). We’re going to show you this with three charts: you’ll see that the drawdown is lower, as is the volatility and average price. Recurring purchasing is the most effective strategy to set aside Bitcoin regularly and automatically and you can set it up in your Moneybox

We ran a simulation based on historical market data on the price of BTC, and imagined a recurring purchase of €50 in Bitcoin per week from January 2020 to March 2023. Here are our results. 

A positive performance for 80% of the period 

Maybe you have some regrets about 2020 spent on the couch in your pyjamas… Today we add to the list not having set up a recurring purchase on the Moneybox. If you had decided to spend €50 per week to buy Bitcoin automatically now your situation would be as described by this chart. 

Chart Bitcoin Value with recurring purchase

Here you can see the value your wallet would have had in March 2023. The yellow line indicates the total amount spent to buy BTC, the green line is the value of your holdings (+22.5%). The moneybox represented by the graph was in the positive for 86.2% of the time considered. With the best performance at +71.43 and the worst at -30.77%. 

Wouldn’t it have been cheaper to buy Bitcoin at its lows instead of at any time? If you have this doubt, read the results of this research which shows that there is actually no such thing as the ‘perfect moment’. Predicting market movements is not for everyone, recurring buying removes this difficulty and still leads to good results. 

Even in a bear market the losses are smaller

In this second graph, the blue line shows the price of BTC from March 2022 to March 2023, the green line the percentage return (profit and loss) of the holder that chose to buy Bitcoin with recurring purchases. 

Chart Bitcoin performance with recurring purchase

According to the analysed data, the drawdown, i.e. the maximum loss that can occur in a time interval, is smaller compared to that of a single purchase. In the period considered, from the beginning of March last year with BTC at $45,000 to March 2023, there would have been a maximum drawdown of 20% compared to the -64% recorded by the price of Bitcoin. In short, the recurring buyer would be in profit by 16% after one year. 

The savings are obvious

In these times of inflation, saving money is becoming a mission for most people. If you are looking for a way to buy Bitcoin while optimising your spending, recurring purchasing is again an option you might consider. Let’s look at the third chart. 

Chart Bitcoin's average price with recurring purchase

The blue line shows the price of BTC from January 2020 to January 2023, while the red line shows the average price paid to buy Bitcoin with recurring purchases. Considering that the cryptocurrency has a bullish trend over large time intervals, the result is that with recurring purchases over the long term, you can get a very good average purchase price compared to the market value. In January 2022 buying spot would have been around $5,000, with recurring buying instead less than $2,000. This is not because there are different prices in the same period, but because the price of the recurring purchase averages out all levels by also including purchases made when the cryptocurrency was at its lowest. 

Again you may ask yourself if buying at lows is not the best thing to do, theoretically the answer is yes. But again ‘lows’ are not easy to predict, so buying on a regular basis is a good trade-off to avoid fretting over ‘impromptu’ market analysis and instead buy Bitcoin conveniently. 

*The information in this article is for educational purposes and is not an incentive to invest. It is based on historical and objective Bitcoin market data, charts do not represent future predictions. The performance of any cryptocurrency wallet is always subject to market conditions and volatility. 

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