A crypto tool you didn’t know you needed: Recurring Buy Plan (RBP)

Synopsis

The RBP can be used by both big as well as small-scale investors. In this sense, it is accessible to more people. If you only have a limited amount of money to invest, they are a great option to consider.

Crypto exchanges around the world have begun to offer systematic/ periodic buying plans as a way to invest in crypto assets like Bitcoin, Ethereum, and others. The crypto market is notorious for its volatility, but systematic buying plans help users beat the volatility by allowing them to add crypto to their portfolios on a regular basis.

CoinSwitch, India’s largest crypto exchange platform has recently made the Recurring Buy Plan (RBP), a form of SIP, available to users as part of its mission to make money equal for all—in addition to its pre-existing features of course.

RBPs Simplified
Buying cryptos impulsively is tough work. Reading indicators and taking calls as per technicals isn’t easy either. RBPs, however, are simpler to understand and even easier to execute.
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With RBPs, similarly, you can allocate a certain amount for the purchase of some units of a crypto asset at a given price whenever it becomes available in the market. This allows you to allocate your capital uniformly and get a better average price over a longer period of time.

For beginners and small investors, RBP is an excellent crypto buying strategy. Instead of investing a large amount at once, you can put in small amounts every month over a long period. And there is no need to time the markets. As crypto assets are inherently volatile, investing through a recurring plan is a better option. With RBPs, traders can stay invested through the highs and lows, and make the best buys even with unpredictable market movements.

Advantages of RBPs:
Inbetween1 (3)
Wider access
The RBP can be used by both big as well as small-scale investors. In this sense, it is accessible to more people. If you only have a limited amount of money to invest, they are a great option to consider. You won’t have to pay a large sum of money all at once because the allocation is phased. Instead, you can set up monthly RBPs with as little as ₹100 in the crypto asset of your choice.

Reduces risks
RBPs can be a hedge against crypto volatility. Yes, you might not always get the lowest prices, but the average buying price is expected to be in the desired ballpark. Long-term RBPs can help you flatten out erratic market behaviour.

However, RBPs allow fixed, automated purchases too, and that eliminates impulsive decisions and massive short-term price fluctuations.

Protects from market volatility
Whales in the crypto market can easily manipulate the crypto market, breaking through even the most robust support and resistance levels. RBPs are unaffected by such short-term whale invasions since they have set buying cycles.

HODL Friendly
Anyone familiar with crypto markets would know that HODLing (which is to hold on to your assets and not make purchases out of greed or panic) is one of the best strategies for traders in this space. So it is reassuring to know that RBPs can be viewed in the same light as other HODLing strategies.

RBPs’ long-term exposure is expected to give you an advantage over short-term buying and selling because prices are best averaged across purchases.

No need to time the market
With RBPs, you don’t have to worry about drawing charts, finding trendlines, identifying support and resistance zones, and pushing for the right momentum and volatility indicators to find a value buying zone. While you’ll still need to do some fundamental analysis to identify the most promising assets, you won’t have to do any complicated technical work to find the best entry and exit points.
Inbetween2 (4) How Does CoinSwitch’s RBP Work?
CoinSwitch already has a legion of users of their app who trust and choose the app. With the introduction of RBPs, the unicorn exchange platform is now offering a service that crypto traders didn’t know they needed. The new plans will enable users to buy units of a cryptocurrency on a particular date of their choosing each month. It is a simple way to create wealth and mitigate the risks usually associated with crypto assets. It does this by giving investors a better entry price and distributing coin/token purchases.

Although RBP appears to be the best feature for crypto traders, it is not without its drawbacks. And here are a few things to think about before investing in a crypto RBP:

  • There are no instant buying and selling opportunities
  • Capital could be halted.
  • It is not intended for day-to-day trading.
  • RBPs may not be able to assist you in identifying key drops.

Wrap-Up
If you’ve been planning to invest in crypto assets but are worried about the volatility of the crypto market, CoinSwitch’s Recurring Buy Plan can be a good start. It will let you profit while you familiarize yourself with the market before moving on to bigger things. With the option of investing in small amounts each month, RBP gives you a steady, disciplined approach to creating wealth.

Disclaimer : The above content is non-editorial, and TIL hereby disclaims any and all warranties, expressed or implied, relating to the same. TIL does not guarantee, vouch for or necessarily endorse any of the above content, nor is it responsible for them in any manner whatsoever. The article does not constitute investment advice. Please take all steps necessary to ascertain that any information and content provided is correct, updated and verified.
Crypto products and NFTs are unregulated and can be highly risky. There may be no regulatory recourse for any loss from such transactions.
For any queries, write to support@coinswitch.co Presented By

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Updated: 03/03/2022 — 11:00