Many new crypto users usually buy their first Bitcoin on centralized crypto exchanges like Binance to avoid the complex procedures involved in trading on decentralized platforms. However, centralized crypto exchanges list multiple cryptocurrencies making it impossible to have a Bitcoin expert who can support buyers wanting to purchase the crypto asset. That’s where Swan Bitcoin comes in. The Bitcoin-specific protocol offers expert advice to anyone wishing to buy BTC.
In this article, we will help you understand how Swan Bitcoin works. Please keep reading.
What’s Swan Bitcoin?
By employing the dollar-cost averaging method, Swan Bitcoin helps buyers to own BTC cost-effectively. To start making recurring BTC purchases, you first must set up an account on the platform. After that, you need to link your bank account with Prime Trust, a popular custodian that partnered with Swan Bitcoin months ago. Once done, Swan Bitcoin will ask you to approve automated fund withdrawals from your bank account to the platform’s accounts. You will also be required to provide a Bitcoin address.
Using Dollar-Cost Averaging in Purchasing Bitcoin
Simply put, dollar-cost averaging is an investment strategy that involves making regular purchases using a fixed dollar amount in an effort to bring down the buying cost. Financial analysts say this approach enables people to develop disciplined investing habits.
Here is an example that will help you understand the dollar-cost averaging method better. Let’s say you want to invest $300 every month. In a booming market, you are likely to get fewer tokens with $300, but when prices start falling, you can purchase more tokens using the same amount. That said, the dollar-cost average strategy aims to reduce the average cost per token by discouraging investors from making crypto purchases in one go. So as an investor, you can opt to buy Bitcoin daily, weekly, or monthly through Swan Bitcoin.
How Does Swan Bitcoin Work?
Swan Bitcoin gives its users the power to choose where to store their purchased BTC. They can go for the platform’s custodial partner Prime Trust or store in Swan Bitcoin’s self-custody wallet. Note that the users can access their Bitcoin as they please.
On top of that, the platform caters to high-valued businesses through its Swan Private service. These businesses receive expert advice on buying and storing large amounts of Bitcoin. But the advice is not free; Swan Bitcoin charges an undisclosed fee. It’s worth highlighting that the platform also has several Bitcoin experts that help other users develop a proper buying plan.
How Swan Helps Buyers ‘Save’ in BTC
Swan Bitcoin allows users to make recurring monthly, weekly, or daily purchase plans for BTC. Many regulatory jurisdictions consider these plans as saving. After making purchases, the platform lets buyers create an automated withdrawal plan but can also withdraw their Bitcoin manually.
What Makes Swan Bitcoin Stand Out?
With automated BTC purchases, Swan Bitcoin offers an easy way for people to acquire the crypto asset. Additionally, since Swan Bitcoin is specifically designed for BTC transactions, the platform does not have to operate a node necessary to verify altcoins, thus eliminating human resource expenses.
Unlike multi-coin trading platforms, Swan Bitcoin is not subject to the recent stricter regulatory measures. Also, since it only deals with Bitcoin, which many regulators consider non-security, Swan Bitcoin will likely continue operating without any regulatory interference, considering that the US regulators have recently been going after exchanges offering tokens they deem as securities.
Is Swan Bitcoin Safe?
By Swan Bitcoin partnering with one of the most trusted crypto custodians, Prime Trust, anyone buying BTC through the platform can be assured that their asset will be stored under proper security. It’s important to note that Prime Trust keeps all crypto assets in cold-storage wallets, preventing cybercriminals from attacking them. The custodian has also employed other effective security measures, such as one-time passcodes sent to users’ emails to ensure no unauthorized access.
That being said, even when Swan Bitcoin decides to wind up operations, users will still be able to access their Bitcoin since they are stored with an external custodian, unlike centralized exchanges, which usually are the custodians of their users’ BTC.
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