Creating a Recurring Investment
Setting up a recurring investment is simply a matter of setting up a recurring payment from your online banking. Since you can re-use the deposit reference provided when making a deposit on the BitFund platform, the funds will automatically be allocated to the chosen portfolio whenever we receive them.
Your payment reference when making a deposit is linked to the portfolio that you clicked "deposit" on. If you have multiple portfolios, and want to set up a recurring payment into each of them, you will need to use the deposit reference for each respective portfolio.
What are the benefits?
A recurring investment is often referred to as "Dollar Cost Averaging". In a volatile market, this can be a useful tool in an investors arsenal. According to Investopedia, the idea behind dollar-cost averaging is to cut down in investment risks by investing the same dollar amount in the same investment over a period of time. The DCA technique does not guarantee that an investor won't lose money on investments. Rather, it is meant to allow investment over time instead of investment as a lump sum. Because the market can be so unpredictable, it can give people who may be a little hesitant a good opportunity to start investing. By using the DCA strategy, the cautious investor doesn't have to look for the best entry point in order to invest in a particular asset.