This article is intended for members in the United Kingdom. If you're looking for instructions for CoinJar Australia, visit this article.
What is a Recurring buy?
Recurring buy allows you to set up automatic cryptocurrency purchases at regular intervals into any CoinJar Bundle of your choosing, using your debit or credit card, to ensure your portfolio is diversified. You can easily set up a recurring buy schedule from within the CoinJar app and begin adding funds to your bundle using the Dollar Cost Averaging method.
Note: Recurring Buy is only available to CoinJar members who have completed ID Verification (KYC).
What is Dollar Cost Averaging (DCA)?
Dollar Cost Averaging (DCA) is a commonly used strategy where you purchase the asset by a set amount over regular intervals, for example, where you invest £20 every week. This strategy helps you reduce risk by enabling you to purchase more when prices are lower and less when prices are higher. DCA does not guarantee profit but, over time, may help even out the price fluctuations. Recurring buy of a set amount helps you take advantage of this strategy by providing the option to automatically purchase cryptocurrency on weekly, fortnightly or monthly schedules.
Example: Buying Bitcoin with no DCA in a down-trending market
Paul decides to purchase £2,500 worth of Bitcoin on December 28th, 2017. The Bitcoin price at the time was £21,353 per coin, which means that Paul now owns 0.1171 BTC.
Example: Buying Bitcoin with DCA in a down-trending market
Julia decides she wants to purchase $2,500 worth of Bitcoin on December 28th, 2017. However, instead of investing the entire amount today, she decides to purchase $250 every month, for 10 months. 10 months later, Julia owns 0.2248 BTC. That’s almost twice as much as Paul, even though both invested the same amount.
Example: Buying Bitcoin with no DCA in an upward trending market
Paul decides to purchase £2,500 worth of Bitcoin on April 20th, 2020. The Bitcoin price at the time was £11,238 per coin, which means that Paul now owns 0.2225 BTC.
Example: Buying Bitcoin with DCA in an upward trending market
Julia decides she wants to purchase £2,500 worth of Bitcoin on April 20th, 2020. However, instead of investing the entire amount today, she decides to purchase £250 every month, for 10 months. 10 months later, Julia owns 0.148 BTC. That’s almost less than half of what Paul owns, even though both invested the same amount.
Benefits of Recurring Buy with CoinJar:
- Allows you to spread your purchases across high and low prices, which reduces your chances of buying at market tops
- Set, schedule, forget - CoinJar will automatically charge your selected debit or credit and buy into the Bundles at the frequency you have selected
- Start with small amounts - DCA does not require a large upfront investment
How do I set up CoinJar Bundles with Recurring Buy?
- After opening the CoinJar, select CoinJar Bundles under the "Your CoinJar" section.
- Select a Bundle that you are interested in.
- Select "Add Funds/Add Funds to Bundle"
- Select "Set up recurring buy"
- Choose your Payment method, If you are yet to add a debit/credit card to your CoinJar you will be presented with the option to add one.
- Create your Payment Schedule (amount, starting date, and frequency)
How do I edit a recurring buy?
Editing the schedule of your recurring buy is an easy process, simply:
- Tap on the bundle you wish to edit the schedule of.
- Under the Recurring buy section tap on your current scheduled payment, this will take you to the Recurring buy screen.
- Tap on the "Edit schedule" button to bring up the editable elements of the recurring buy.
You are able to adjust the following elements of the recurring buy:
- Amount
- Frequency
- Next payment date
Frequently Asked Questions
Which CoinJar Bundles can I purchase?
You can find the available Bundles in the CoinJar, or check our Knowledge Base, which contains more information on the available Bundles, including breakdowns of the allocation splits for each cryptocurrency.
What payment methods are available for recurring buy?
CoinJar currently supports recurring payment schedules with linked debit and credit cards.
How often will purchases be made?
Recurring buy can be configured for weekly, fortnightly and monthly schedules at this time.
When will my purchase be processed?
Your first transaction will take place when you set up the payment schedule. After your initial purchase, your recurring payments can be changed to a date that best suits you. You'll find these payment schedule settings in your bundle under the "Recurring buy" section.
How many recurring buy can I set up?
You can only set up one recurring buy per Bundle at this time.
How do I cancel a recurring buy?
You can cancel your recurring purchase in CoinJar at any time.
- After opening the CoinJar, select CoinJar Bundles.
- Select a Bundle
- Under the Recurring buy section tap on your current scheduled payment, this will take you to the Recurring buy screen.
- Tap on three horizontal dots in the bottom right.
- Select Cancel recurring buy
- Select Confirm
What’s the minimum amount for recurring buy?
The minimum recurring buy amount is £20.
What’s the maximum amount for recurring buy?
A maximum recurring buy limit of £2,000 per payment (regardless of the payment frequency selected) applies. At this time, CoinJar only supports one recurring buy schedule per CoinJar Bundle.
Why can't I unbundle or sell my bundle?
Your account may be affected by the reserved balance period. Your first Instant Buy/Recurring Buy purchase with a particular debit or credit card will be held in the reserved balance for 7 days. After 7 days have passed, all future Instant Buy purchases, made using the same card will not be reserved. For more information about this essential security feature please see the following article:
Can I set the exact amount of crypto that I want to purchase?
At this time, it's not possible to set an exact amount of cryptocurrency to be purchased. CoinJar automatically calculates the cryptocurrency amount to be credited to your Bundle on the day and time that the purchase takes place. The dollar amount is set based on the Payment Schedule when you set up the recurring buy.
At what price will CoinJar place a buy order?
The price that’s displayed in the CoinJar App on the day, and at the time, that the purchase takes place, is the price CoinJar places a buy order at.
What happens if a scheduled payment fails?
If a scheduled payment fails the recurring buy schedule will be paused and you will be notified via email and push notification regarding the failed recurring buy.
Will I be alerted when a purchase doesn’t execute?
We will notify you via email and push notification if a scheduled payment fails.
What are the fees for buying through a Payment Schedule?
Recurring buy carries a low 2% debit/credit card fee.*
CoinJar's fees are available on our Knowledge Base, see the below article for more information regarding Instant Buy and the associated fees.
*Please note that CoinJar recommends using debit cards as credit card purchases might incur additional fees if your financial institution chooses to classify these transactions as cash advances.
Can a Payment Schedule wait until the price of a cryptocurrency reaches a certain level before buying?
The purchase transaction occurs at the same time that the scheduled payment is processed, which means it's not possible to wait until the price of a cryptocurrency is at a certain point.
Disclosures
All investments involve risk and loss of principal is possible. Investors should consider their investment objectives and risks carefully before investing. Recurring buy does not ensure a profit or guarantee against loss. This is not investment advice, a recommendation, an offer to sell, or a solicitation of an offer to buy any security.