Bitcoin as a Complement to Traditional Savings Plans – A Smart Way to Handle Volatility
10/11/2024
In times of low interest rates and rising inflation, many are looking for alternatives to traditional savings plans.
One interesting option is Bitcoin, the world’s first decentralized digital currency. But how does Bitcoin fit into a savings plan, and is it really a sensible addition?
Bitcoin – The 21st Century’s Digital Gold?
More and more people view Bitcoin as the "digital gold" of the 21st century. With its limited supply (only 21 million Bitcoins will ever exist) and decentralized structure, Bitcoin could play a similar role to gold in the future – as a store of value and a hedge against inflation. However, Bitcoin is also known for its high volatility. Prices can fluctuate dramatically in a short period, which poses a challenge for many investors.
The Cost Average Effect: Why a Savings Plan Makes Sense
One strategy to manage Bitcoin's volatility is the cost-average effect. By regularly purchasing Bitcoin, for example on a monthly or weekly basis, you can lower the average purchase price. Instead of trying to time the market perfectly, you benefit from price fluctuations: you buy at both high and low prices, resulting in a balanced average over time.
Relai – Your Bridge to Bitcoin
One of the easiest and safest ways to start a Bitcoin savings plan is through Relai. Relai allows you to invest small amounts in Bitcoin regularly, without having to worry about complex technology or confusing exchanges. Relai is user-friendly and perfect for those who are considering Bitcoin as a complement to their traditional savings plans.
Create your Relai account now and use our discount code REL66153 to start investing in Bitcoin more easily and affordably.
Learn more about the Bitcoin savings plan from Relai
A Long-Term Perspective
Bitcoin undergoes a "halving" event every four years, where the number of newly created Bitcoins is halved. These events have historically triggered significant price increases, as they reduce the supply of new coins. The halving and Bitcoin’s growing adoption could continue driving its value upward over the years – but the risk remains high. That’s why a savings plan is so valuable: it reduces risk and lets you benefit from Bitcoin’s long-term potential.
For more information on Bitcoin and its significance, check out this insightful article from Deutsche Bank here, and read about the importance of Bitcoin’s halving event on SRF.
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