Strike It While It's Hot
Enter a new era in dollar cost averaging your Bitcoin
Welcome to 2022.
I know I’m not the first person to write that sentence and send it your way, and you’ve probably heard it from other people in your life. It’s a new year, and that means that it is time for a refresh.
How about a change in the way you’re buying Bitcoin?
I spent the last three weeks of December conducting an experiment. I wanted to see if I could shake up my Bitcoin buying, and if I could take better advantage of the daily swings in asset price.
So, I downloaded the Strike wallet in the app store.
Never heard of it? That’s okay.
Here’s the lowdown—Strike is the flagship project of Zap, a startup that is perhaps most famous for helping El Salvador adopt Bitcoin. CEO Jack Mallers is young (he isn’t even 30 yet) and larger-than-life in the way that only an energetic budding tech tycoon can be these days. Jack calls himself a pleb (the shortened version of the word plebeian, which refers to a person in the lower class of Rome) and he wears hoodies and ballcaps instead of custom suits and designer ties.
Zap allows US users to convert their paychecks into Bitcoin, and buy Bitcoin on the open market. The Strike app uses the Lightning Network, allowing the platform to connect seamlessly with other apps built on that network. The goal is to lower the barriers to entry for Bitcoin investing.
Strike also happens to have one of the best recurring purchase features that I’ve ever found in the crypto world. A user can set up a recurring Bitcoin purchase in monthly, weekly, daily, and hourly segments… and do it all for free.
That last part felt irresistible. Other exchanges tend to have high fees, and that can be a barrier for someone who wants to build a Bitcoin portfolio.
And so, in mid-December, I jumped.
It took about twenty minutes to download the app and set up my account. Strike works with most major banks, and allows users to link a debit card for deposits (that’s what I did) or a checking account. After a few more taps, I deposited some cash and set up a recurring daily Bitcoin purchase for an amount that made sense to me. To be clear, Strike only allow users to convert dollars into Bitcoin.
After a few weeks of usage, and I’m hooked.
It doesn’t matter what I’m doing, those recurring purchases are happening in the background. If I forget to check the app, it’s not a big deal—Strike is still going to make sure that I buy Bitcoin on a certain schedule. It doesn’t matter if I catch a dip—I’ve already told Strike to make the purchase. The few interactions I’ve had with the administrative team have been prompt and informative.
But best of all, Strike allows me to maximize my Bitcoin buying.
I’m not tied up by fees anymore. That matters—especially to the small investor. And if I ever want to move my Bitcoin to a different wallet, Strike will allow that with a few simple clicks.
It’s no secret that dollar cost averaging is one of the best ways to build an investment portfolio. Buying a asset on a set schedule reduces volatility impact and commits an investor to the principle of “time in the market, not timing the market”. That’s key.
For Bitcoin, DCAing can be incredibly lucrative. For example, a $10 weekly Bitcoin purchase starting in January 2018 and ending in January 2021 would have seen $1,570 invested, but a current value of $8,691. That’s a return of over 450%.
Math can be fun sometimes.
And so, in 2022, DCAing with Strike will be an integral part of my crypto investing. When I want to buy Bitcoin, I’m going to Strike first.
The Crypto Connection is for entertainment purposes only and is not meant to be financial advice. Please do your own research before investing in any asset class. Sara Celi is not a financial advisor, and holds several cryptocurrencies. To purchase her books on Amazon, please click here.