Celsius Network Recurring Purchases for Crypto
Want to put your crypto purchases on autopilot by setting up a recurring purchase through the Celsius Network platform?
Wondering how you can get free recurring purchases through Celsius Network? Unfortunately, there is no ‘special feature’ for fee-free recurring crypto purchases on the platform at the moment. This feature is in development but there is no ETA on deployment.
What are Recurring Purchases in Crypto?
First of all, let’s define what a “recurring purchase” in crypto is. When you sign-up for an account through a crypto platform (usually a centralized exchange or ‘CEX’ such as Celsius Network), the platform may allow you to make scheduled purchases. A user can define the following:
- Crypto asset to purchase (like Bitcoin or Ethereum, for example)
- How often you want to purchase the asset (hourly, daily, weekly, monthly etc). This is often referred to as your recurring purchase frequency.
- How much you want to purchase per asset (based on USD, your local currency or amount of crypto asset per purchase)
- How you want to pay for your purchase (using USD, local currency, stablecoins, specific crypto asset, credit card, debit card or bank account)
Sometimes, there is a fee per transaction. What this means is that you pay anywhere from 0.1 to 2.0% per recurring purchase, especially if you are using a debit card, credit card or bank account to make these crypto purchases. The fee comes out of the final amount of crypto you receive (ie. it is usually not added to the total dollar amount of crypto you want to purchase). However, there are some platforms that offer fee-free recurring purchases. This means that a user does not pay any fees when purchasing crypto through this strategy.
Setting up recurring purchases for crypto is a dollar-cost averaging (DCA) strategy that many investors utilize. By purchasing crypto assets multiple times over a period of time (versus going ‘all-in’ through one big purchase), an investor can reduce or mitigate risk as the crypto markets are very volatile. Click here for more information about crypto DCA.
So How Does Celsius Network Fit Into Your Recurring Crypto Purchase Investment Strategy?
As mentioned above, unfortunately, Celsius Network does not currently have a recurring crypto purchase feature. They are working on this as part of the Celsius Swaps feature that has rolled out globally.
However, Celsius Network gives users weekly rewards that are accrued between Friday to Friday and paid out every Monday. The weekly reward payouts are based on the weekly reward rates that are updated every Friday. The amount of crypto rewards paid out on Mondays are dependent on the reward rates and the dollar/fiat amount is based on the market value of the crypto asset on Monday when it is deposited into your Celsius Network wallet.
So in an indirect way, Celsius Network actually gives its users fee-free recurring crypto purchases through weekly rewards.
Here is an example using Terra (LUNA):
After depositing 10 LUNA in mid-November, this Celsius Network user has been getting paid over 5.00% APY in-kind for 5 months. Rewards accrual is Friday to Friday and the payout comes every Monday.
These Monday payouts is a form of dollar-cost averaging through automatic recurring purchases. They are fee-free too. So in this direct way, the user is taking advantage of fee-free recurring crypto purchases through Celsius Network.
Celsius Recurring Purchases?
Celsius Network does not have recurring purchases functionality currently. However, it’s been mentioned on previous Friday AMAs and Twitter Spaces. It is currently under development and the final product will allow for Celsius users to setup fee-free recurring crypto purchases using stablecoins and perhaps even other crypto assets in their wallets (such as Bitcoin or Ethereum etc). With the current development of a fiat on-ramp, it is expected that the new Celsius recurring purchase feature will also allow for purchases to be made using fiat currency. However, there is no estimate for the launch of this new feature. Please stay tuned!