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Recurring buys allows you to set up a direct debit to automatically send money from your linked bank accounts at regular intervals into any CoinJar Bundles of your choosing, to ensure your portfolio is diversified. You can easily set up direct debit transfers from within the CoinJar app and begin adding funds to your bundle using the Dollar Cost Averaging method.
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 $10 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 buys of a set amount helps you take advantage of this strategy by providing the option to automatically direct debit 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 Buys 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 direct debit your linked bank account and buy into the Bundles at the frequency you have selected
- Start with small amounts - DCA does not require a large upfront investment
Unbundling
CoinJar Bundles with recurring buys are great for customers with a long term investment horizon. As such, a bundle can only be closed 7 days after the date of their last Recurring Buy deposit.
This means that if you setup recurring buys for a CoinJar Bundle with an existing cryptocurrency balance or decide to add more funds to that CoinJar Bundle, then you won't be able to unbundle this CoinJar Bundle for 7 days after your most recent direct debit purchase.
Example:
If you set up a CoinJar Popular Duo Bundle with recurring buys for $10 per week starting today, then you won't be able to unbundle, sell or withdraw any cryptocurrency in this CoinJar Bundle for 7 days after the most recent direct debit deposit. If 24 hours later, you purchase $10,000 worth of CoinJar Popular Duo Bundle using CoinJar's one time buy option, then you will still be unable to unbundle, sell or withdraw any cryptocurrency from the CoinJar Popular Duo Bundle for 6 days.
CoinJar Bundles without recurring buys will not be impacted.
Frequently Asked Questions
How do I set up CoinJar Bundles with Recurring Buys?
- After opening the CoinJar app, tap Bundles at the bottom of the screen.
- Select a Bundle
- Select Add funds to bundle
- Select Recurring buy
- Choose your Payment method
- Create your Payment Schedule (amount, starting date, and frequency)
Which CoinJar Bundles can I purchase?
You can find the available Bundles in the CoinJar app, or check our Knowledge Base, which contains more information on the available Bundles, including breakdowns of the allocation splits for each digital currency.
What payment methods are available for recurring buys?
CoinJar currently supports direct debit from your linked bank accounts at this stage, however we are working to add support for debit and credit cards in the future.
How often will purchases be made?
Recurring buys can be configured for weekly, fortnightly and monthly schedules at this time.
When will my purchase be processed?
The purchase is processed at the time of direct debit. CoinJar provides you the option to choose the start date for your direct debit. Direct debits are processed on bank days only (not on weekends or bank holidays). If the start date of your recurring buy falls on a weekend or bank holiday, it will be processed on the next business day. CoinJar processes direct debits multiple times per day, on the 45th minute of every hour.
How many recurring buys can I set up?
You can only set up one recurring buy per Bundle at this time.
What’s the minimum amount for recurring buys?
The minimum direct debit amount is $10.
What’s the maximum amount for recurring buys?
A maximum direct debit 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.
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 digital currency to be purchased. CoinJar automatically calculates the digital currency amount to be credited to your Bundle on the day and time that the direct debit takes place. The Australian 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 direct debit takes place, is the price CoinJar places a buy order at. For example, if a recurring buy is set to to start on 5th Feb 2021, then the direct debit will occur at 00:45 UTC.
How to cancel a recurring purchase?
You can cancel your recurring purchase in the CoinJar app at any time.
- After opening the CoinJar app, tap Bundles at the bottom of the screen.
- Select a Bundle
- Tap on three horizontal dots in the top right
- Select Stop recurring buy
- Select Confirm
How do I edit a recurring purchase?
At this stage it's not possible to edit a Payment Schedule. You can cancel an existing Payment Schedule in the app and then create a new one with the new details, e.g. the amount, the chosen starting date, and frequency.
What happens if I don’t have enough money or crypto in my account?
If your linked bank account has insufficient funds when the direct debit is processed, funds will not be added to your CoinJar Bundle.
What happens if a direct debit fails?
If a direct debit fails, no funds will be added to a CoinJar Bundle. In some instances, CoinJar may be required to unbundle a transaction due to bank reporting delays.
Will I be alerted when a purchase doesn’t execute?
The direct debit and purchase occur at the same time, however we will notify you via email if a direct debit fails.
What are the fees for buying through a Payment Schedule?
CoinJar's flat 1% buy and sell fees apply. CoinJar's fees are available on our Knowledge Base.
CoinJar's deposit and transfer fees
In terms of fees, adding funds to your Bundle via Recurring Buy is the same as buying crypto through the CoinJar app.
Can a Payment Schedule wait until the price of a digital currency reaches a certain level before buying?
The purchase transaction occurs at the same time that the direct debit is processed, which means it's not possible to wait until the price of a digital currency 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 buys do 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.