PAC Bitcoin: how to make an accumulation plan to invest

In recent years, Bitcoin PACs have become a concrete and real alternative to traditional investments on the cryptocurrency market. The term Bitcoin accumulation plan encompasses several concepts.

The original meaning of the term refers to a constant investment in ETFs, funds, or any collective investment product. In a more modern conception, a PAC on BTC can be considered simply a gradual and periodic investment in the asset.

If the meaning can be simple enough to understand, it is a different matter to understand how to create a Bitcoin PAC in the correct way. This is precisely what we will examine closely in the course of the following lines, focusing on the practical.

We immediately recall that the presence of many professional exchanges has greatly facilitated the possibility of investing in this new way. This is the case of Bitpanda, or Binance, which offer periodic automatic investment systems on Bitcoin.

What is a Bitcoin PAC

Things?	Periodic and constant investment plan on Bitcoin
How long does it last?	At the investor's discretion
How much capital do you need?	A monthly fee of 50 euros can also be set
Best automatic PAC exchange:	Bitpanda (Whoa)

A Bitcoin PAC , i.e. an accumulation plan on Bitcoin, is an investment strategy that, as the term itself reminds you, allows you to accumulate a certain basket of cryptocurrencies (in this case of Bitcoin).

To do this, it requires periodic fractional investments, i.e. the investment of sums established at the start, at a constant date, also established before starting the strategy. For example, you can choose to bet your odds every month, every quarter, and so on.

Most cryptocurrency traders , especially beginners, usually invest in a single instrument, betting all the capital in a single solution. In this case he is literally betting on that precise and single market entry.

Differently from this, with the Bitcoin accumulation plans you invest by periodically intercepting an average of the prices of the cryptocurrency over time. Doing so drastically reduces the volatility component, i.e. upward and downward trends.

How a Bitcoin PAC works

So let's get down to the practical and see how a Bitcoin accumulation plan works . There are many solutions available, both if we want to consider a strategy with a traditional CAP and if we want to proceed with a modern CAP.

In the first case, it is sufficient to select an investment plan in ETFs, or other types of funds that deal with Bitcoin. For those unfamiliar with it, a Bitcoin ETF ( exchange traded fund ) is a managed fund , based on the copy of indices that replicate the value of the BTC.

Instead, taking as a reference an accumulation plan on modern Bitcoin , it is sufficient to rely on automatic systems to allocate periodic resources on the purchase of the cryptocurrency. The Bitcoin PAC can also be structured and carried out manually.

The functioning of a Bitcoin PAC is based on 3 points:

choice of the capital to be achieved over time;
subdivision of the capital into several shares, on the basis of the months (or of the chosen period);
start of constant investments and observation of the progress of the plan.

PAC Bitcoin simulation

To understand in detail the functioning and meaning of a PAC on Bitcoin, it is possible to present a quick simulation .

On the basis of the points indicated above, let's assume that:

having chosen a capital to invest on a constant basis of 1,000 euros;
having divided the capital into 10 shares of 100 euros;
having decided to proceed with the investment of the share every two months.

In our simulation, the accumulation plan begins with the purchase of a certain number of Bitcoins, in this case in a fractional way and at a specific price, for the amount of 100 euros established at the start.

After two months, the system automatically invests the second share, that is another 100 euros, by purchasing a (almost always different) number of Bitcoin. We proceed in this way until we reach the fifth two-month period, reaching the investment of 1,000 euros in BTC .

The difference between the investment in a single solution and the accumulation plan is precisely the diversification of the purchase at different prices, which involves a lowering of the "volatility factor" - which, however , is never canceled at 100% , given the market unpredictability.

Pros and cons of the Bitcoin accumulation plan

We summarize in some points the main advantages and any disadvantages (or rather, risks), related to the creation of an accumulation plan on Bitcoin and the use of this alternative investment strategy.

Benefits PAC Bitcoin

make it possible to dilute the component of market volatility;
they are associated with the most capitalized cryptocurrency in the world;
they can be managed automatically on the best exchanges;
it is also possible to start from very discrete constant quotas, without having to invest large capital immediately;
they allow you to avoid the analytical study to decide when to enter the market.

Disadvantages PAC Bitcoin

the risk component is never 100% eliminated;
decision-making skills are required for the creation of a preliminary strategic plan.

PAC Bitcoin: Historical Results

In certain historical periods, the Bitcoin accumulation plan strategy has proved to be one of the most interesting and most successful strategies for investors.

Let's try to propose some examples, based on the evolution of the value of the cryptocurrency, currently in first place by capitalization. Leaving aside the very first years of launch (2009-2010) due to the practical difficulties of buying BTC, let's focus from 2011 onwards.

With a Bitcoin price of around 2.50 euros, any investor who had decided to bet 100 euros per month for 24 months (about 2,400 euros), would have found himself after two years with a Bitcoin accumulation plan worth over 10 million euros.

Very similar speech, again with reference to historical data, you can make in the three-year period from 2015 to the end of 2017 and the beginning of 2018. In this period, starting from a price of about 185 euros in January 2015, the value of Bitcoin has exceeded in some points also 15,000 euros, in 2017.

Investors in a constant accumulation plan, even with discrete shares of 100 euros of BTC per month, found themselves at the beginning of 2018 with a very satisfactory result, while limiting the volatility component as much as possible .

PAC Bitcoin conviene?

Historical results are obviously no guarantee of future results and just as Bitcoin can show rising prices, it could also undergo corrections and price drops. After reaching its peak in 2021, it has for example shown a sharp drop.

During the first week of October 2022, the price fluctuated upwards and downwards around $ 20,000. A much lower share than the potential of the cryptocurrency, if we refer to the historical high points.

In this market context, experts are therefore wondering whether or not current prices can represent an excellent entry point on the market, to structure an accumulation plan on Bitcoin .

Beyond its usefulness, purely as a network for exchanges , Bitcoin continues to be the most capitalized cryptocurrency and the one most associated with projects of all types, from decentralized finance ( DeFi ) to the new monetary systems.

An asset that has certainly not lost interest, although it will obviously be carefully evaluated over the months. In this regard, you may be interested in our targeted study on Bitcoin forecasts .

How to make a Bitcoin PAC

If you want to focus on this new investment strategy, it is good to know that creating a Bitcoin accumulation plan is very simple, at least from an operational point of view. Based on your needs, you can opt for different solutions.

For example, you can proceed with the structuring of a manual Bitcoin PAC, deciding to invest the same amount constantly, opening purchase positions on one of the best exchanges , such as eToro .

Alternatively, you can rely on the automatic features for PAC Bitcoin , offered by other world-renowned exchanges, such as Bitpanda and Binance. Before delving into them in detail, here are the steps to make a PAC on Bitcoin:

choose an exchange that supports the purchase of Bitcoins and that has a solid Bitcoin wallet , with private keys and easy to use;
deciding how much capital to invest constantly, also choosing the period of each investment;
set up the automatic purchase function, or alternatively proceed manually with the purchase of BTCs;
monitor the progress of your Bitcoin accumulation plan, making changes, even on the value of the shares, if necessary.

PAC Bitcoin su Bitpanda

The first exchange that allows you to structure a Bitcoin PAC quickly, autonomously and professionally is Bitpanda (go here for the review) . It is a well-known operator all over the world and with thousands of registered users.

With Bitpanda you can set up a real automatic savings plan, which you buy on your account at the time and date you set. You can then decide to set a constant quota, for a variable period of time and create your own personalized plan.

It is thus possible to buy Bitcoin for a longer period of time, without having to constantly think about when to enter the market, while mitigating the volatility. Recurring purchases after the first operation will be handled directly by the software.

You also have the possibility to create multiple savings plans for the same asset (accumulation plans on Ethereum are also available, i.e. PAC on ETH ), as well as pause the savings plan and reactivate it based on your needs.

Your capital is at risk

PAC Bitcoin su Binance

A second noteworthy exchange, which allows you to create crypto accumulation plans in Bitcoin, is Binance (review here) . Also in this case, the PAC on Bitcoin can be managed in a very simple, but above all automatic way.

We previously mentioned that an accumulation plan is nothing more than a constant purchase (with the same amount) of a set of crypto assets. With Binance's recurring shopping feature, you can proceed with periodic fractional purchases.

This benefiting from very low commissions on each execution, professional assistance at all hours and the possibility of managing your PAC on Bitcoin even through the practical application for mobile devices.

Below are the steps to set up a Bitcoin PAC on Binance:

register on the platform in seconds;
complete the identity verification procedure by uploading a valid document;
click on "credit / debit card";
click on "enable", next to "recurring purchase";
choose the purchase currency (for example euro) and the plan currency (Bitcoin);
enter the date and set the purchase frequency;
click on confirm and monitor the status of the Bitcoin accumulation plan .

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