🪙 Investing in Crypto With Spare Change
Bits and how it rounds your everyday purchases up to the next dollar in order to invest in crypto
Today's Highlights
- Bits - low risk crypto investments
- This Week On BuzzBelow - a recap on this week's topics.
- In Other News - a few interesting developments we're tracking.
Bits - low risk crypto investments
Crypto is hard. There's extreme market volatility, and that’s intimidating to first-time investors or wannabe investors. Bits allows users to invest their spare change in cryptocurrencies through automatic dollar roundups. Each user’s credit card transaction is rounded up to the next dollar and that difference is invested in cryptocurrency. Similar to other investment platforms, which automatically invests in a portfolio of stocks, Bits caters to users who want to dollar-cost average small amounts to build their portfolio of crypto investments over time.
Dollar-cost averaging is a strategy in which investors put money into assets incrementally over time. It can be beneficial to those who want to spread their investment out, with a likelihood of seeing higher returns as opposed to a one-time, all-in investment.
To start investing, users have to download the app and connect their credit cards. They then choose a basket of up to three currencies to allocate their investments across. Users spend money as usual, and with each transaction, the spare change rounded up to a dollar is deposited into the app. From there it’s invested across the basket in $25 increments to avoid heavy gas fees. Bits also lets users select amounts for daily, weekly and monthly automatic investments.
Financial services companies currently offer crypto-roundup features. However, these require the use of these platforms’ native credit cards. But Bits utilizes banking software Plaid to allow users to plug in any debit card, credit card or bank account to begin roundups and scheduled investments. Bits has integrated Coinbase for users to invest in tokens listed on the exchange as well as withdraw their profits via Coinbase wallet. The integration of Coinbase and Plaid allows the product to operate across all 50 states in the U.S. It’s also building out educational content, called Tidbits, to educate and onboard users new to the crypto space on what tokens are available to purchase.
Alex Poscente, Nick Bembenek and Jameson Rader are the co-founders of Bits. Bits has raised a total of $1.2M in funding.
This Week on BuzzBelow
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