Why does the Bulot investor add capital on a recurring monthly basis?

We get a lot of questions about the need to add recurring capital, even when investing large sums (> 3000€).
So I’d like to explain in detail why it’s essential to activate this gas pedal when using the Crypto Bulot strategy.

To begin with, this strategy is known to experienced investors as the dollar-cost averaging strategy. It is especially popular with long-term investors who place their money in a medium they believe in, as it offers several advantages in this case.

1. Reduce the risk of market fluctuations

The crypto market fluctuates wildly, and one of its distinctive features is that it regularly experiences both upward and downward spikes in extremely short time intervals.

Our objective as investors is to protect ourselves from these fluctuations, and that’s precisely what adding recurring capital allows us to do.

By adding a fixed sum each month, this allows us to buy cryptos at their average price. And the longer we do this, the more our purchase cost is averaged, and therefore the more stable it is. And since we’re betting on a long-term bull market, the averaged purchase price will always be lower than the future market price. It’s a statistical fact.

2. Reduce the risk of returning at the wrong time

When you invest for the very long term, there really isn’t a bad time to get in… But it’s still rather unpleasant afterwards to realize that you’ve invested all your capital in a period when the price was at its highest.
By setting aside an initial capital and then programming a recurrent addition of capital, you greatly reduce the risk of getting in at the wrong time, because the overall capital is smoothed out over the investment period.

3. It preserves morale when the market is bearish

Even if strategy means staying out of the news, it’s hard not to be influenced when there’s a big drop.
But if you set up a recurring capital addition, these market dips become opportunities to buy back cryptos at a lower price.
In this case, we’re not just sitting back and watching the value of our portfolio fall, but taking the opportunity to buy more and more cryptos at momentarily very attractive prices, enabling us to achieve even greater gains later on.

4. This puts you in the position of a long-term investor

Investing a sum and not worrying about it is all well and good, but it disengages you from the strategy, and you could potentially be tempted to reclaim your fund if the need arises.
By setting up a recurring capital addition, you enter into a logic of effort to save and follow this strategy. You know that each withdrawal will bear fruit in 2-3 years’ time, and so unconsciously, it projects you into a long-term logic to which you’ll be attached even in difficult times when you might need the money.

If you want to become a true Bulot Investor, then you need to set up this fixed, recurring capital addition!

The question now is how to estimate the amount of this recurring addition, and how to implement it.

5. Estimating the amount to be added each month

The amount of capital you add each month depends on the savings effort you want to put into the Crypto market and, more specifically, into the Crypto Bulot strategy.
For my part, I’ve estimated that a ratio of 3% of my starting capital is a good starting point.
If you want to invest €10,000 in this strategy, that means you could add €300 to your portfolio every month. This amounts to adding the equivalent of your starting capital every 3 years or so.
If you want to make a greater effort, you can… and if you want to make a more modest effort, you can too. But what’s most important is that this additional capital is perceived as an effort to save, and that you don’t need this money to live on, because the aim is to invest it for the very long term.
It should be noted, however, that below €50, the added capital would not be significant enough to really benefit from the advantages of this strategy.

If you want to become a true Bulot Investor, then you need to set up this fixed, recurring capital addition!

Now the question is how to estimate the amount of this recurring addition and how to set it up.

Why is it important to automate?

There’s a fundamental difference between people who get rich and people who stagnate in the development of their wealth.
This difference is that people who get rich start by paying themselves before paying others.
If you invest this fixed amount automatically (at the beginning of the month), then you use the rest of your money to pay the rest. And if you allow yourself extras (like eating out) you’ll do so in consideration of what you have left in your account.
But if you pay everything you have to pay and tell yourself you’ll wait until the end of the month to save money, if you have any left, then you can be sure there’ll be nothing left because you’ll have spent it all.
By setting up an automatic capital addition, you can be sure of maintaining your savings effort over time, as it will be completely painless when it comes to managing your money. Without realizing it, your savings effort will be your greatest asset in a few years’ time, especially as the crypto market looks set to rise.

How to set up a recurring capital addition in Binance

Now that you’ve understood the benefits of setting up automatic recurring capital additions, let’s take a look at how to do it in Binance.

Click on the menu “Buy cryptos -> Credit/Debit card”.

Then enter the recurring capital amount in euros

Then click on BTC to change the crypto
In the search bar, enter USDT and click on USDT to confirm your choice.

We recommend buying USDT because it’s a Stablecoin, i.e. a crypto currency that’s stable. It’s stable because it’s pegged to the dollar, so its value doesn’t vary much. This secures the stability of your capital between the time you add it and the time it is included in your 1st rebalancing.

Once the amount and USDT are defined, click on “Recurring purchase”.

The button turns orange, so you can click on the orange line with the “Weekly…” periodicity.

This takes you to a screen where you can change the periodicity.

Choose the 1st of the month (Crypto-Bulot is rebalanced on the 3rd of the month, so you can quickly integrate your latest capital addition and get it working quickly)
You can then change the time. You can set it to 1 a.m… This will be done at night, while you’re sleeping… There’s nothing more pleasant than knowing that you’re getting rich while you sleep. 😊

Please note that recurring purchases on Binance are limited to 1700€. If you wish to add more than 1700€ of capital per month, then you can use the shorter periodicity (for example, I have positioned a purchase of 1000€/week which corresponds on average to 4500€/month).
It is also possible to run several recurring purchases at the same time.
The point to watch is that your CB ceiling is high enough for the payment to go through on the 1st of the month. If you have any doubts about this, you can contact your bank to increase it.

Once you have validated the periodicity, you will return to the screen which summarizes the information on the recurring purchase.
You can then click on continue to access the screen for selecting your credit card.

For your information, a fee of 2% of the amount will be deducted from the capital at the time of the transaction.
You will also receive a message by sms 1 day before the purchase occurs and after it has gone through. Here are the sms received:

Your recurring capital addition is now in place.

You can return to your account at any time to modify or stop this recurring purchase.

To access your recurring purchases,
Click on the menu “Buy cryptos -> Credit/Debit Card”.

Then click on “Order history” at the top right of the screen
Then click on the 2nd tab “Recurrent purchase”.

This brings up a table listing all recurring purchases. In this example, you can see that there is 1 recurring purchase of €1,000, with a total of €5,000 added automatically since it was set up.
You can also see a 2nd line showing an inactive purchase (mentioned as failed).

To enter the details of the recurring purchase, click on the “Show plan” button.

You will then be taken to a page showing the history of transactions made with this recurring purchase.
You will also find the periodicity parameters saved.
You can click on the yellow “Manage” button to modify them.

This takes you to the periodicity settings screen.
You can then change the settings and validate them by clicking on the continue button.

You can only change the frequency. If you want to change the amount, you have to stop the current recurring purchase and create a new one.

To stop a recurring purchase, go to this same screen. Here, click on the orange phrase “Stop recurring purchase plan”.

The advantage of adding recurring capital lies in its stability. The more you modify it, the more you’ll lose interest in using this tool to improve the performance of your Crypto Bulot portfolio.

Now you know everything you need to know about adding recurring capital.
Go to your Binance account to set it up, if you haven’t already done so.
And if you’re having trouble setting it up, don’t forget to contact our support team at support@crypto-bulot.com so that we can set up a zoom appointment to take you step by step through the process.