Cash App, a popular money transfer and Bitcoin-investing app, has added support for an automatic-purchasing option.
Moreover, there is a new option to display the balance in terms of satoshis (sats) rather than in decimals of a bitcoin.
A satoshi is 0.00000001 bitcoin, making 10,000 sats worth about one US dollar at time of writing.
A common complaint among novice Bitcoin investors is the inability to buy a single bitcoin, making the (purely cosmetic) satoshi option an attractive method of onboarding more Bitcoiners.
Jack Dorsey, CEO of both Twitter and Squar (the company behind the Cash App), posted a screenshot of the updated features on Twitter today:
The automatic-purchasing feature, also generally known as the dollar-cost averaging (DCA) method of investing, is definitely the simplest method of trading/investing but also surprisingly difficult to beat as a strategy:
tfw memes become reality— Matt Odell (@matt_odell) May 18, 2020
This is because timing any market can be difficult, even for experienced traders.
Thus, DCA is a way for an investor to lower their overall buy cost over time. However, the DCA strategy is only effective if the market traded (here Bitcoin) is expected to continue rising.
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