Welcome to the September 2020 edition of the Swan Signal monthly newsletter. In this month’s letter:
- Liftoff: a short essay on an important topic
- A curated list of recent Bitcoin content
- Behind the scenes updates from the Swan team
- Free Bitcoin book (Inventing Bitcoin by Yan Pritzker).
Liftoff: Automatic Recurring Bitcoin Buys is the Best Strategy
What’s the best way to invest in Bitcoin? Some people see price volatility and think the best move is to actively trade BTC. However, the vast majority of traders lose money. Instead, automatic recurring Bitcoin purchases are the best approach for 99% of people.
Time in the market beats timing the market.
Humans are naturally bad at investing — our instinct is to buy when the price is rising (greed) and sell when the price is falling (fear). This makes timing the best moment to buy bitcoin nearly impossible. Luckily, we don’t need to time the market. Regular recurring purchases outperform active trading on a risk-adjusted basis.
Introducing Dollar-Cost-Averaging (DCA)
Dollar-Cost-Averaging (DCA) is a strategy to overcome our emotions of fear and greed. With the DCA strategy, you buy a specified amount of Bitcoin regularly. Compared to trading, DCA smooths out the price volatility, reduces your tax burden, and removes the headache of trying to time the market. Dollar-Cost-Averaging Bitcoin has been very lucrative. For example, if you bought $100 worth of BTC every week for 3 years, you would be up over 47%. Just holding Bitcoin has produced incredible compounding returns…
Swan makes investing in Bitcoin safe, easy, and automated
Here at Swan, we take DCA one step further and automate the entire process. All you have to do is set up your Swan Bitcoin recurring purchase plan (e.g. $100/week) and we take care of the rest. We automatically pull USD from your bank account, automatically buy Bitcoin, and you can automatically withdraw your Bitcoin (optional). Would you rather stare at price charts all day or simply set up an automatic recurring plan once and be done with it? We have thousands of customers who love our “set it and forget it” approach to investing in Bitcoin.As a Swan customer, we appreciate your business. You can increase your plan or setup auto-withdrawal anytime. Just head over to your dashboard.
We’ve pulled together some great Bitcoin content from around the web for you…
Bitcoin Content Showcase
Michael Saylor on Stephan Livera Podcast
Saylor explains why his public company (MicroStrategy) just bought $450m worth of BTC. Saylor went from clueless to raging Bitcoin bull in a few short months.
A Century of Fiscal and Monetary Policy by Lyn Alden
Lyn Alden is one of the most clear-thinking macro analysts of our time. She takes a historic approach to the question “Is inflation or deflation coming?
Jim Cramer becomes a Bitcoin Bull on the Pomp Podcast
Pomp convinces Jim Cramer (CNBC Mad Money Host) to start buying bitcoin in under an hour. Not to mention, Jim Cramer has a fascinating backstory.
Bitcoin Tidbit: What Does “Buy the Dip” Mean?
“Buying the dip” refers to purchasing an asset after it has declined in price. The idea is that you get a good deal when the price temporarily declines. Historically, the Bitcoin price has been trending upward since its inception in 2009. The belief that the Bitcoin price will continue to rise has led the Bitcoin community to fully embrace “buying the dip.” At Swan, we offer automatic bitcoin buys every week/month (and soon daily) so you’re guaranteed to “buy the dip.”
Luke Gromen on What Bitcoin Did Podcast
Understand the current macroeconomic climate, how the existing financial system is coming to an end, and why we need Bitcoin.
Bob McElrath on Orange Orange Pill Podcast
Learn about Bitcoin mining, energy consumption, hash rate, and quantum computing from a theoretical physicist and bitcoin entrepreneur.
Highlights from Swan’s Content
Swan is dedicated to producing great content to educate and raise awareness about Bitcoin. Our blog, Swan Signal, features thoughts and opinions on Bitcoin from the Swan team and industry experts.
Our weekly live broadcast, Swan Signal Live, pairs notable guests for compelling discussions about Bitcoin and economics. The live broadcast is then published as audio on theSwan Signal Podcast feed.
Swan Signal Live 26: Lyn Alden and Nic Carter
Discussed the transition away from dollars and onto Bitcoin, free-banking in the Bitcoin era, drawbacks of central bank digital currencies, and why bitcoin won’t suffer the same fate as gold.
Swan Signal Live 27: Erik Townsend and Yan Pritzker
Lively discussion about central bank digital currencies and government responses to Bitcoin. Erik argues Silicon Valley will team up with governments to create their own currency. Yan argues that Bitcoin would outcompete these potential competitors.
On Bitcoin’s User Experience (UX) by Gigi
Bitcoin is only ~11 years old and has a long way to go in terms of UX. Gigi thoughtfully compares Bitcoin’s UX today to the early internet. TL;DR the future is bright, but we have a lot of building to do.
Swan Signal Live 29: Preston Pysh and Andy Edstrom
Why corporations like MicroStrategy are adopting bitcoin as a reserve asset and implications of Bitcoin held widely in public company portfolios. Educational for beginners and deep insights for the insiders.
Swan Signal Live 30: Raoul Paul and Vijay Boyapati
Our most popular episode to date. We discuss the history of fiat, deflation, Bitcoin vs Ethereum, risks to Bitcoin, and price manipulation.
Behind the Scenes at Swan
- Our signup process for new customers has dramatically improved (most people get approved the same day). Invite your friends and family to Swan!
- Daily buys coming soon.
- We welcomed Brandon Quittem (@bquittem) to the Swan Education team. Brandon is most well known in the Bitcoin community for writing the Bitcoin + Mycelium series. He has an enterprise software, marketing automation, and communications background.
- Our weekly Swan Signal Live (SSL) video and podcast format is growing rapidly. We carefully pair two guests, leading to unique insights not found anywhere else. SSL airs on Twitter, Facebook, YouTube, and Twitch, or you can listen to the audio podcast at swansignalpodcast.com.
Free Bitcoin Book
As a token of our commitment to Bitcoin education, we’re giving the Swan community a free copy of Inventing Bitcoin.
It’s a highly regarded Bitcoin book written by our CTO, Yan Pritzker.
If you know any friends/family that are interested in bitcoin, in return for the free book please share this page so they can get a copy of the book too.
The Swan Team
P.S. What do you think about Swan? How can we improve the service? What can we do to recruit more Bitcoiners? Just reply to this email.
We really appreciate your input and we put it to good use to make Swan a better service for you.