Master Dollar-Cost Averaging with Bitfinex Recurring Buy
Bitfinex introduces Recurring Buy to automate dollar-cost averaging for Bitcoin and Ethereum, allowing users to purchase fixed amounts at regular intervals without timing the market.
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On August 11, 2020, Strategy (formerly MicroStrategy) began accumulating Bitcoin at approximately $11,650 per coin, steadily purchasing through market highs, lows, and volatility. By 2026, the company held over 843,000 BTC, representing more than 4% of Bitcoin’s total supply. Similar strategies have been adopted by other entities, such as BitMine Immersion, which accumulated over 5.7 million ETH, nearly 5% of Ethereum’s circulating supply, through consistent purchases over time. On-chain data further indicates that long-term Bitcoin holders increased their holdings by more than 2 million BTC during recent market downturns, while short-term holder supply declined by a comparable amount.
Dollar-cost averaging (DCA) involves purchasing a fixed dollar amount of an asset at regular intervals, regardless of price fluctuations. This approach reduces the impact of market volatility by averaging out purchase prices over time. For example, investing $100 monthly in Bitcoin since January 2023 could yield significant holdings by August 2026, with purchases made during both highs and lows balancing the average entry price. The strategy prioritizes time in the market over attempting to time the market, aligning with the practices of institutional investors like Strategy.
Bitfinex Recurring Buy automates DCA by allowing users to set fixed purchases on a daily, weekly, or monthly basis directly from the Bitfinex Mobile Lite app. The feature executes purchases automatically as market orders without trading fees, provided the Exchange Wallet is funded. Users can adjust or cancel recurring orders at any time, offering flexibility to adapt to changing strategies. This automation removes the need for manual intervention, reducing the risk of missed purchases due to distractions or emotional decision-making.
The unpredictability of Bitcoin’s price movements underscores the value of disciplined accumulation strategies like DCA. While no one can predict market direction, consistent purchasing over time can mitigate risk and improve long-term outcomes. Bitfinex Recurring Buy provides a hands-off solution for investors seeking to replicate the approach of major holders such as Strategy, enabling automated purchases without the need for constant monitoring or emotional trading decisions.