If you are investing in cryptocurrencies for the first time, we recommend a funded investment that can be started easily with a small amount.
With funded investment, you can reduce the risk even with virtual currencies with volatile prices, so even beginners can invest in virtual currencies with confidence. In this article, we will introduce how to make a funded investment in virtual currency and recommended exchanges. Please refer to it.
- table of contents
- What is funded investment?
- Rules that you want to keep the minimum amount of funded investment
- 3 ways to save cryptocurrencies
- Domestic exchanges where you can make funded investments
What is funded investment?
Funded investment is an investment method in which a fixed amount of investment trust is purchased every month. The difference from savings deposits is that they automatically purchase financial products that fluctuate in price, not cash.
Funded investment can be started from a small amount, and although there is a risk of loss of principal (market price falls below the purchase price), a large profit can be expected from a long-term perspective.
Recently, an increasing number of people are investing in cryptocurrencies for the purpose of long-term asset formation.
Rules that you want to keep the minimum amount of funded investment
There are two rules that you should keep in mind when making a funded investment.
- Utilize the dollar cost averaging method
- Continue to purchase for a certain period
Making a funded investment using the dollar cost averaging method for a certain period of time is the key to safe asset formation with virtual currencies. From here, I will explain two rules.
Leveling prices using the dollar cost averaging method
The dollar cost averaging method is an investment method in which a fixed amount of financial products is purchased on a regular basis, rather than a large amount of financial products purchased at one time. As an example, if you continue to purchase 10,000 yen of virtual currency every month for 2 years, it is the dollar cost averaging method.
The advantage of the dollar cost averaging method is that it reduces the risk of price fluctuations. Even with the same cryptocurrency investment of 10,000 yen, when the price is high, the number of units that can be purchased is small, and when the price is low, the number of units that can be purchased is large. Looking at the total, you can lower the average purchase price.
The difficulty with cryptocurrency investment is that price fluctuations are large. Three months after reaching the maximum of $ 60,000, it has dropped to $ 30,000, due to the effects of Tesla’s tweet by Elon Musk and the FBI operation against Russian hackers.
Reference article: Controversial summary of Elon Musk’s cryptocurrency-related tweets
The dollar cost averaging method is effective because the price of virtual currencies fluctuates too much. In fact, co-founder Adam and others of the popular wallet “BRD” are steadily increasing their assets using the dollar cost averaging method.
Other benefits are that automatic purchases eliminate the need for every transaction and avoid stress because there is no risk of losing large amounts in an instant.
Purchase in a certain period without being confused by price fluctuations
The key to funded investment is to eliminate emotions.
It is not affected by emotions such as “I don’t want to lose any more, so let’s sell it” or “Everyone is buying, so let’s buy more”. If you are confused by price fluctuations and increase or decrease the number of purchases, you are more likely to lose as a result.
The ideal is to leave it alone enough to forget that you are making a funded investment. By forgetting it, you can make an efficient investment without making your own judgment. By the time you notice it, it may be a big sum.
3 ways to save cryptocurrencies
There are three ways to save virtual currency.
- Manual trading
- Use the reserve service of the exchange
- Build your own system with API
Here we compare three methods. Please understand the advantages and disadvantages of each method so that you can select the most suitable funding method.
It is a method to purchase virtual currency manually on the virtual currency exchange. Since you can make a funded investment at any exchange, it is recommended for those who want to make a funded investment with a rare virtual currency. In addition, since the purchase amount can be changed freely, you can make a funded investment according to the price of the virtual currency.
On the other hand, it also has the disadvantage of being easily confused by price fluctuations. Many people who trade manually look at the charts of the exchange all day long, trying to buy at the lowest possible price.
Also, when the price is high, the psychology of “I don’t want to lose” works, and it becomes difficult to purchase a fixed amount every month. Manual trading is also recommended for those who are willing to be independent of price fluctuations, even to use the dollar cost averaging method.
Use the reserve service of the exchange
We recommend that you use the reserve service of the exchange for beginners of cryptocurrencies.
You can use it just by opening an account on an exchange with a reserve service and deciding the reserve amount and the virtual currency to purchase. Once you apply, you will be automatically purchased every month, so you will not have to worry about trading and you will not be confused by price fluctuations.
The disadvantage is that as of July 2021, only three domestic exchanges offer funding services. While it supports major cryptocurrencies such as Bitcoin and Ethereum, it will be difficult to invest in minor currencies.
All exchanges are free of charge for the reserve service, but purchases are made at virtual currency sales offices. Since the selling price (spread) includes the transaction fee at the sales office, please understand that the fee will change depending on the exchange and the market situation.
Build your own system with API
If you have programming knowledge, you can also use the API published by the cryptocurrency exchange to create programming that can be automatically funded.
The advantage of using the API is that you can customize it to suit your needs. For example, the reserve service of the virtual currency exchange has a fixed purchase date and time. If you build a system with API, you can even buy on the day when the lowest price of the past 30 days was updated.
In addition, building programming with API has the advantage that there are no fees or spreads, and even if it does, it is cheap. Cryptocurrency exchange fees are a little higher for small investments, so the API can keep the fees down.
The disadvantage is that you need programming expertise to build your own system. Security is also a self-responsibility, so it will be a high hurdle for beginners.
For those who are investing in virtual currency in earnest, we recommend building a system with API.
Domestic exchanges where you can make funded investments
Introducing the features of domestic exchanges that provide funding services and domestic exchanges that can build a funding system using APIs. Please use it as a reference when choosing a platform for funded investment.
3 Exchanges Offering Funding Services
There are three domestic exchanges that provide reserve services: Coincheck, bitFlyer, and GMO Coin.
The following are the characteristics of the reserve service of each exchange.
|Handling currency||BTC / ETH / ETC / LSK / XRP / XEM / LTC / BCH / XLM / QTUM / BAT / IOST / ENJ / OMG|
|Reserve plan||Monthly savings / daily savings|
|Reserve amount||From 10,000 yen to 1 million yen a month|
|Payment method||Monthly withdrawal from designated account|
Coincheck’s funded investment service automatically handles everything from deposit to purchase. Therefore, even beginners of cryptocurrencies who do not know how to choose or buy an exchange can easily start funded investment.
There are 14 types of currencies available, and the feature is that “grass coins” such as IOST and ENJ are available. Grass coin is a highly speculative virtual currency with a low market capitalization.
Reference article: Grass coin
Having a lot of grass coins will give you a big return when the price goes up. For example, you can use Coincheck to invest in grass coins and other exchanges to invest in major cryptocurrencies.
Coincheck is recommended for those who want to make a funded investment with grass coins as well as major virtual currencies.
|Handling currency||BTC / ETH / ETC / LTC / BCH / MONA / LSK / XRP / BAT / XLM / XEM / XTZ / DOT|
|Reserve plan||Once daily, once weekly, twice monthly, once monthly|
|Reserve amount||From 1 yen to 1 million yen a month|
|Payment method||Withdrawal from registered account|
The feature of bitFlyer is that you can reserve virtual currency from 1 yen a month, and there are a wide variety of savings plans.
Even if you are interested in cryptocurrency investment but do not have enough funds, you can easily get started. It is attractive to be able to invest in virtual currency from the price of one can of coffee.
In addition, there is a unique system where you can get bitcoins when you use the Internet service via bitFlyer.
The apps and sites are designed to be easy to understand, so even beginners can easily use them.
|Handling currency||BTC / ETH / BCH / LTC / XRP / XEM / XLM / BAT / OMG / XTZ / QTUM / ENJ / DOT|
|Reserve plan||Daily plan / monthly plan|
|Reserve amount||From 500 yen to 50,000 yen a month|
|Payment method||Monthly withdrawal from designated account|
Reference: GMO coin
GMO Coin is an exchange that we would like to recommend to those who place importance on the reliability of the operator. GMO Coin will be operated by the GMO Internet Group, which is listed on the First Section of the Tokyo Stock Exchange.
There are 13 types of currencies available.
If you are uncertain about Coincheck, which has similar services, clarify your desired monthly reserve amount.
Recommended exchanges for each reserve amount
GMO coin is best if the reserve amount is 10,000 yen or less, Coincheck or GMO coin is best if it is 10,000 to 50,000 yen, and Coincheck is best if it is 50,000 yen or more.
|0 to 10,000 yen||GMO coin|
|10,000 yen to 50,000 yen||Coincheck or GMO coin|
GMO Coin can be funded from 500 yen a month, and the reliability of the operator is high, so it is recommended for those who want to invest in virtual currency safely and securely.
The virtual currency and reserve amount handled differ depending on the exchange.
To choose the best funding service for you, we recommend comparing available currencies, funding plans, spreads and more.
For example, if you want to save Bitcoin while keeping costs down, you may want to use Coincheck, which is free of spreads.
If you want to start with a small funded investment, bitFlyer or GMO Coin is the best choice.
Clarify the purpose of the funded investment and select an exchange funded service that can achieve the purpose.
3 exchanges that can build a funded system with API
There are three exchanges where you can build a funded system with API.
Regardless of which exchange you use, you must first open an account and issue an API key. Then follow the instructions in the document to build your funding system.
Summary: Let’s efficiently form assets by funded investment of virtual currency
For your first cryptocurrency investment, we recommend starting with a small amount and making a low-risk funded investment.
There are three ways to invest in cryptocurrencies.
- Manual trading
- Exchange reserve service
- Build your own system with API
If you’re wondering which one to choose, consider an exchange funding service. You can continue with peace of mind because you can save the trouble of each transaction and not be confused by price fluctuations.
There are three domestic exchanges where you can make a funded investment.
By accumulating steadily for a long period of time, the amount of money may become large before you know it, so please try the funded investment of virtual currency.
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“Cryptocurrency” means “cryptographic assets”