How to set up recurring buys
- Author
- CRYPTO PORT Editorial
- Published
- Updated
- Reading time
- 5 min
In short
A recurring buy purchases a fixed amount at a fixed interval automatically. You generally choose the coin, the amount, the frequency and the funding method, and save it. The benefit is that you stop making a decision every time you buy. It does not remove price risk, though, and depending on how the purchases are executed you may be paying a worse price than on the exchange-style screen.
Key points
- You specify the coin, the amount per purchase, the frequency and how the money is taken
- If purchases run through the brokerage-style service, you buy at the quoted price
- You can normally pause, change the amount or add coins at any time after setting it up
- Recurring buying does not remove price risk
Definition
A setting that automatically buys crypto for a fixed amount at a fixed interval. Operators call it recurring buy, auto-purchase, accumulation plan and other names.
Typically you open the recurring-buy screen, choose a coin, set the amount per purchase and the interval (daily, weekly, monthly), pick where the money comes from, and save. Funding is usually either from your yen balance at the exchange or by direct debit from a bank account. The latter often needs a separate bank registration and takes days before the first purchase runs.
The first thing to check is which side of the service the purchases go through. If they execute in the brokerage-style service, you are buying at the operator's quoted price, which is a different pricing arrangement from placing your own order on the exchange-style screen. Which works out better depends on circumstances; the point is to know they differ. No figures are given here, because they vary by operator and get revised — read the official fee and spread pages.
This article will not tell you what amount or frequency to choose. One practical warning does belong here: the defining feature of a recurring buy is that it keeps running, which is also to say that money keeps leaving your account while you are not looking. Set an amount that does not affect your daily life, and check the history at least monthly to confirm you still want it running.
Changes after setup are usually unrestricted — pause, resume, change the amount, add or remove coins. Whether a change made just before a scheduled purchase applies to that run depends on the operator's cut-off processing. After any change, look at the history to confirm the next purchase behaved as you intended.
A word on tax: recurring purchases build the acquisition-cost record you will need when you eventually sell. More purchases means more records, so exporting the history regularly makes the later calculation much easier. 'Crypto and tax: the basics' explains the approach.
Watch out for
- · Recurring buying does not prevent losses. Ending up below your average purchase price is an ordinary outcome
- · If you fund it by direct debit, an insufficient balance can cause the plan to stop
- · Outside services promising a 'guaranteed' or 'principal-protected' automatic accumulation are a classic scam. Treat them as entirely separate from an exchange's own feature
Frequently asked questions
Is there a charge for stopping partway?
Most operators do not charge to stop, but terms differ. Check the official documentation, along with whatever cost applies to the purchases themselves.