Casa Blog - Bitcoin Security Made Easy

Editor’s note: Bitcoin purchases are no longer available through the Casa app as of January 2023. We recommend that you use an alternative purchasing platform.

When’s a good time to buy? You don’t necessarily have to know.

Dollar-cost averaging allows you to buy small amounts of bitcoin on a regular basis to even out your cost over time. Recently, we unveiled the ability to buy bitcoin through our partner Wyre, so you could add recurring buys directly to your multisig with dollar-cost averaging. Here’s why you may want to consider dollar-cost averaging for your purchases.

🤝 DCA and HODLing go together

The prospect of using short-term price movements to buy more bitcoin or make quick profits has captivated many bitcoiners.

Timing your investment, however, is difficult to do, regardless of whether you’re new to bitcoin or a longtime HODLer. Markets are made up of buyers and sellers on the opposite side of a trade, each with their own rationale. This human element adds an unpredictable element to bitcoin’s price, so trying to time your purchases is not generally recommended.

There’s another strategy you could use to buy it. Dollar-cost averaging (DCA) is a popular investment strategy where you make regular investments of a set amount over time rather than investing a lump sum and guessing what the market will do. You can set up DCA to make investments on a weekly, biweekly, or monthly basis.

With DCA through Casa, you can make recurring buys without worrying if you’re paying a good or bad price on each transaction. Overall, your cost basis averages out and generally follows bitcoin's overall price trend. Each bitcoin purchase is automatically sent to your multisig after a short processing period, so you don’t have to take the extra step of withdrawing your bitcoin from an exchange.

✨ Recurring buys through Casa are available in select states in the U.S. Learn more about how to get started with Casa Gold here.

🧘‍♀️ Peace of mind is priceless

DCA can have a big impact on how your bitcoin investment performs over time because let’s face it — investing is psychological. If you’re just learning about bitcoin, it’s easy to develop FOMO, or the fear of missing out. A DCA plan gives you control over the emotional side of investing by automating your purchases. Because you commit a specified amount, you can still participate without experiencing as much FOMO.

How does this work? Let’s follow the story of Bob and Alice, two investors with vastly different styles.

Bob has $1,000 he’d like to invest in bitcoin. After watching a YouTuber give price predictions, he feels FOMO and decides to spend the $1,000 in one big purchase. The next day, bitcoin’s price takes a dip by 50% and stays down for three months. Bob is upset because he thinks he could have bought more. To make matters worse, he’s worried that bitcoin will never rise again, so he panics and sells his bitcoin for a $500 loss.

Alice is more patient than Bob. Although bitcoin’s price may go up or down, she expects it to perform well over time. She makes an initial buy of $500, sets up a DCA purchase of $100 a month, and goes to the beach. When Bitcoin dips by 50%, Alice is cool as a cucumber for the next three months because she knows she’ll receive 50% more sats for her $100.

Recurring buys allow you to reduce your exposure to price volatility, or wild swings in bitcoin’s price because your investment is consistent and limited. This zen-like approach to investing makes DCA a popular strategy.

🔑 Start buying (and securing) bitcoin now

With Casa, you can start your secure DCA today with the knowledge your money is safe. Casa Gold protects your bitcoin from accidental loss and theft, and it’s free to try for 30 days.

👉 Get started now.

The Services are a platform for managing cryptographic keys and nodes. The Services are not an exchange for buying, selling, or trading digital or virtual currency or assets (an “Exchange”), and Casa is not a bank or other financial institution. The Services do not and cannot sell, hold, invest, send or receive money or cause or effect any digital or virtual currency or asset transactions. BY USING THE SERVICES IN ANY MANNER, YOU ACKNOWLEDGE AND AGREE THAT (A) CASA IS NOT IN THE BUSINESS OF PROVIDING FINANCIAL, LEGAL, TAX, ACCOUNTING, OR INVESTMENT ADVICE OR SERVICES, (B) NONE OF THE SERVICES ARE INTENDED TO PROVIDE OR CONTAIN ANY SUCH ADVICE OR SERVICES, AND (C) ANY AND ALL SERVICES ARE PROVIDED FOR INFORMATIONAL PURPOSES ONLY. Casa urges you to consult a qualified professional for any such advice or service.