Lesson 4: Effortless DCA on Kriptomat

What is recurring buying on Kriptomat and how does it work

Recurring Buy is a feature on Kriptomat that lets you set up automatic purchases of cryptocurrency.

It is a fully automated way to buy your favourite cryptocurrencies on your Kriptomat account, at a desired interval and for a desired amount.

This means you can relax and let Kriptomat do all the hard work for you.

You can buy all coins and tokens available on the Kriptomat platform. Right now, purchases can only be made in euros. You can use your fiat balance, or you can set up a recurring buy using a credit card.

You can choose to invest any amount between 15 EUR and 1000 EUR, either on a weekly, bi-weekly, or monthly basis. You can also select the specific day of the week or day of the month when your purchase will be executed.

The minimum value for each recurring buy is 15 EUR. Depending on the frequency of your purchase, the following limits of the maximum value per purchase are in place: 250 EUR for a weekly buy, 500 EUR for a bi-weekly buy, and 1000 EUR for a monthly buy.

The total limit – the cumulative worth of all recurring buys you set in a day or a month – is 1000 EUR/day and 5000 EUR/month. If you wish to increase total limits, you can contact our Support team via [email protected] and they will gladly assist you.

There are no limits to the number of recurring purchases you can set. Once you schedule and confirm a recurring buy, it will immediately be active. You can review all your buying plans under the Build portfolio and Recurring Buy tab in the left-side menu of the web app. Before each order is executed you will receive an email reminder that the purchase is about to happen.

Finally, you should know that you can raise, lower, or cancel your Recurring Buy plans at any time at no cost. The crypto you purchase is yours and you can do whatever you like with it. We recommend transferring it to your KriptoEarn account, which lets you earn annual rewards of up to 13.5%.

Setting up recurring buys on Kriptomat for peace of mind

Setting up a recurring buy on Kriptomat takes only a minute.

Log in to your Kriptomat account. Under the Build Portfolio tab select Recurring Buy. Click on the ‘Set up a recurring buy’ button.

Enter the amount you wish to invest. It can be anywhere between 15 EUR and 250 EUR for weekly, 500 EUR for bi-weekly and 1000 EUR for monthly purchases.

Next, choose the frequency at which you wish your buy orders to be executed – weekly, bi-weekly or monthly – and the day of the week or month that the buy should happen.

From the list select the asset you wish to set up the recurring buy for. You can choose any coin or token listed on our platform.

Finally, choose the payment method you wish to use for your buys. This can be the fiat balance of your Kriptomat account or a credit card.

Click on Preview recurring transaction. Here you can review the plan you’re about to set up. If everything looks fine, click on confirm.

You’re all set! You will receive an email notification recapping your recurring buy plan.

To review all your recurring buy plans, go back to the Recurring Buy tab. You can edit or cancel a plan by clicking on the three-dotted menu located on the right of each plan.

Monitor your investments on Kriptomat

On Kriptomat, you can monitor your investments with Portfolio Analytics tools. They will help you evaluate and analyse the performance of the cryptocurrency portfolio held in your account. This involves reviewing the composition, account value, profit and loss and global performance of your portfolio. 

Log in to your account and click on the Portfolio Analytics tab in the left-side menu. You can choose between Account Value, Profit and Loss and Performance.

Account Value shows the total value of your Kriptomat account. It includes all of your assets on Kriptmat – fiat and crypto – across different wallets. 

The interactive chart displays your account value across different time frames such as the last 24h, last week, month, year, or all.

Below, you can review the composition of your portfolio in two ways – Distribution by account and Distribution by currency.

Distribution by account shows the ratio of your assets distributed in your primary wallet, KriptoEarn, Vault, or any other type of wallet. 

Distribution by currency is a visual presentation of the ratio of your total balance per individual currency. It shows value across all your wallets combined.

Profit and Loss or PnL refers to the financial outcome resulting from trading or investing in cryptocurrencies. It represents the difference between the total gains and losses incurred from buying and selling digital assets on the exchange. 

When you engage in cryptocurrency trading, you aim to make a profit by buying assets at a lower price and selling them at a higher price. The profit is the positive difference between the selling price and the buying price. Conversely, if you sell an asset at a lower price than what you paid for it, you would incur a loss. 

To calculate your overall profit or loss on a crypto exchange, you need to consider all your trading activities within a specific period. The PnL is calculated by subtracting the total costs (including fees) from the total revenue (selling price) generated by your trades. 

For example, suppose you bought 1 Bitcoin for 20,000 EUR and later sold it for 22,000 EUR. In this case, your profit would be 2,000 EUR. However, if you bought 1 Bitcoin for 20,000 EUR and sold it for 19,000 EUR, you would have incurred a loss of 1,000 EUR.

The Performance refers to the percentage change in the value of an asset or account, indicating how well it has performed relative to its initial value or benchmark. It provides a measure of the overall growth or decline of the asset or account, offering insights into its success or failure over time.

For example, if you invest 100€ in an asset and it grows to 150€, the performance would be 50% (reflecting the 50% increase in value). Similarly, if you invest 1,000€ in the same asset and it grows to 1,500€, the performance would still be 50% (as the percentage increase remains the same).

PnL and Performance might seem similar but they reflect different things. 

PnL measures the financial outcome, so the profit or loss of a crypto portfolio. Portfolio performance, on the other hand, evaluates the returns and effectiveness of the portfolio relative to a benchmark or target. 

In a nutshell, PNL represents a current snapshot of your account at a given moment, and shows if your assets are making a profit or a loss. Performance, however, focuses on the broader picture which includes hypothetical factors such as the “All time high” price of your currency, market changes and impacts, etc.

For example, let’s say you buy 1 ETH when the price of ETH is 1000 EUR. When the price stands at 2000 EUR, your PnL will display a 100% profit. However, your Performance tab might show a loss.

This is because it takes into consideration the all-time high price of the asset since you bought it and the hypothetical possibility that you would have sold it at that price. So, if ETH went to 4000 EUR since you bought it, your portfolio might show a loss as it considers that you would have made more money by selling it at this higher price. 

One common principle in the world of cryptocurrencies is that no money is lost until you sell your crypto assets. This rule highlights the volatile nature of the crypto market and the importance of long-term perspective and patience when it comes to investment outcomes.

Adapt your strategy to market conditions

We’ve learned that Dollar-Cost Averaging, or DCA, offers a systematic approach to growing your portfolio. But as we know, the financial landscape isn’t always predictable. Let’s explore how you can fine-tune your DCA strategy in response to market trends.

First, you should stay informed. Regularly monitor broader market movements. While DCA emphasises consistency, being aware of the larger financial picture helps in making informed decisions. Are there upcoming events or shifts that could influence your investments? Knowledge is power.

Then, you can adjust your contribution. If you observe a long-term bullish trend, consider increasing your monthly investment amount. It’s like catching a favourable wind. On the flip side, if things look bearish, you might scale back -but remember, DCA is about buying consistently, rain or shine.

Next, diversify. Depending on market volatility, you can consider diversifying your portfolio further or shifting a bit into more stable assets to stay on the safe side.

Also, re-evaluate your goals. As time progresses, periodically check in with your financial objectives. If a particular milestone is in sight, you might tweak your DCA strategy to better align with it.

Lastly, seek expertise. When in doubt, it doesn’t hurt to consult with financial professionals or do extra research. This might provide the clarity you need.

While the essence of DCA remains steady and consistent, it’s okay, and sometimes wise, to adjust your strategy according to the market’s nuances.