This article is part of Rootstock’s series “Building DeFi on Bitcoin” exploring different solutions and integrations on the Rootstock blockchain that enable scaling Bitcoin, bringing DeFi capabilities to the world’s first blockchain.
Balmy, the decentralized banking platform, has recently announced its integration with Rootstock blockchain. This integration brings Rootstockers with a new ride; a DCA-based recurring investment tool.
In this guide, we’re exploring how this solution works for Rootstockers.
But first…
What is Dollar Cost Averaging (DCA)
Dollar Cost Averaging (DCA) is an investment strategy where users invest a fixed amount of money at regular intervals, regardless of the asset’s price. This strategy helps reduce market volatility and averages the purchase prices over time, that’s why it makes particular sense in a market like crypto which is often dominated by hype and speculation.
Since it is impossible to know when the price of an asset is going up or down, instead of investing $1000 in a lump sum the idea is to make recurring investments in, for example, 10 days and invest $100 each day.
Balmy’s Recurring Investment product allows users to customize their investment parameters and automate recurring buys in just a few clicks.
Moreover, the platform offers advanced features such as yield generation (it’s not yet enabled in Rootstock but in is in the roadmap), allowing users to maximize returns while staying true to their long-term investment goals without needing constant monitoring.
Guide to optimizing recurrent investments with Balmy
Step 1: Go to Balmy and connect your wallet
Step 2: Choose the blockchain to use → Rootstock
Step 3: Choose the token you want to sell and the token you want to buy.
Step 4: Define the total amount you want to sell.
Step 5: Choose the time frame to divide that sale.
Step 6: Authorize and start the investment.
Enjoy investing while resting!
About Balmy
Balmy aims to become the first-ever decentralized home banking, designed to be safe, open, and intuitive. The platform empowers users to swap assets at the best prices across +25 EVM networks, make recurring investments in their favorite tokens, and transfer money with ease—all in one place.
Balmy app combines cutting-edge decentralized technology with a user-centric approach, serving as a decentralized banking platform that helps users build lasting investments. Experience the future of banking with Balmy, where innovation meets simplicity, and your financial aspirations are within reach.
Recommended reading
Accessing the crypto landscape is not as easy or user-friendly as we like, this is why we picked out a few articles to walk you through accessing the Rootstock ecosystem:
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- Don’t have RBTC? There are numerous ways to get it, read this comprehensive article.
- Is your current wallet compatible with Rootstock? Explore this comprehensive list of Rootstock wallets.
- Looking to link a business with Web3? Check out the guide on launching web3 services on Rootstock with CryptoMate
Looking for more tips and tricks? Join the Rootstock community on Discord and get your questions answered.
