Education • 4 min read
By Sophie Nicolas
Cost averaging is one of the best ways for the investor who is in it for the long haul. Read this article to learn how you can start investing in your sleep.
Maybe you’re just starting to invest or you think of yourself as an expert. Either way, you’re looking for a way to invest that is easy and maybe a little boring. Well, you’ve come to the right place, we’ve got two words for you: cost averaging. This is one of the best ways for the investor who is in it for the long haul. Read this article to learn how you can start investing in your sleep.
Let’s be honest, learning to trade and guessing when it’s the right time to buy and sell, can be difficult for all traders, let alone rookies. That’s why if you set up a savings plan with Bitpanda Savings, the funds will get deducted automatically from your bank account which is very convenient for those looking to buy Bitcoin (or any digital asset) regularly.
In a nutshell, by acquiring Bitcoin over a long span of time continuously, you are able to level out market volatility. Buying Bitcoin, or any digital asset you like, on a weekly or monthly basis means you are less likely to suffer from short-term price fluctuations. You can read deeper into that here.
So you’ve finally decided to get a savings plan, good for you! But first, you have to understand that investing is always a risk. There’s no fool proof way to invest but there are some ways you can increase the odds! Here’s an example:
Say you want to buy stocks from a banana company because you heard bananas are the new hot thing right now. A share of a banana stock is 1,500 euros, but maybe you don’t have 1500 euros right now to spend. So instead you set up a Bitpanda savings plan and spread out your payments over a six month period. So it looks like this:
Pretty simple, right? This table shows that it’s better to invest over time rather than a lump sum. However, it’s just as easy for it to go the other way as well, that is, you could lose money too. Something else we should mention is that you don’t have to invest a lot of money like the table above. With our SEPA savings plan, you can invest as little as 25 euro a month to get started!
All in all, cost averaging is a great way to start investing for long term gain. Its automatic deduction makes it simple, stress free and it’s a good introduction to the investing world. Of course, there’s always going to be risks, but that’s what makes it fun!
Are you inspired and want to set up your very own SEPA savings plan with no fees? Click here to learn more about it.
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Bitpanda GmbH ve grup şirketleri (Bitpanda) Türk Parasının Kıymetini’nin Korunması Hakkında 32 sayılı Karar’ın 2/b maddesine göre Türkiye’de yerleşik sayılan hiçbir kişiye yönelik olarak 6362 sayılı Sermaye Piyasası Kanunu başta olmak üzere Türkiye Cumhuriyeti Devleti mevzuatı hükümleri gereği Türkiye’de faaliyet izni gerektiren hiçbir sermaye piyasası faaliyetine dair hizmet sunmamaktadır. Şayet Bitpanda’nın yabancı sermaye piyasalarında vermiş olduğu hizmetlerden Türkiye’de yerleşik kişilerin faydalandığı tespit edilecek olursa tüm zararları kullanıcıya ait olmak üzere bu hizmetler ivedilikle sona erdirilecektir.
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