What is Swan Bitcoin and how does it work?

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When someone wants to buy Bitcoin (BTC), they usually go the route of a cryptocurrency exchange. Beginners can buy BTC on any exchange they come across, while those with some experience can opt for a reputable exchange. The exercise bears little fruit, however, as most exchanges operate much like centralized entities, often working as custodians of buyers’ crypto assets.

The security factor is usually limited to passwords and 2-factor authentication (for buyers who have opted in). Customer support, wallet support, and ease of use are other factors buyers might consider when zeroing in on an exchange to buy Bitcoin.

Exchanges have a downside when it comes to supporting customers who want to buy Bitcoin. With an array of digital coins on their platforms, it is simply impossible for them to focus exclusively on Bitcoin buyers. They lack bitcoin experts who could analyze how bitcoin should optimally fit into the buyer’s wallet, taking into account the macro factors of crypto and traditional economics as well as the financial situation of the buyer.

The scenario spells out the need for a Bitcoin-specific platform that would not only allow anyone to buy the first decentralized cryptocurrency, but also provide expert guidance and hands-on experience. This is where Swan Bitcoin comes in. As a Bitcoin-only accumulation platform, it caters to regular customers as well as high-net-worth individuals and businesses. This article will help potential investors understand what Swan Bitcoin is and how it works.

What is Swan Bitcoin

Swan Bitcoin helps save value in Bitcoin, using the dollar cost averaging method to incentivize saving versus spending. In exchange for a fee, it allows buyers to sign up for one-time and recurring Bitcoin purchases. It also does not take a margin on the purchase. A spread refers to the difference between the buying (offer) and selling (offer) prices of an asset.

To buy Bitcoin, users simply need to connect their bank accounts to Prime Trust, an institutional-grade custodian working with Swan Bitcoin. The platform allows users to automate the withdrawal of funds from their bank accounts to Swan accounts and also assign a Bitcoin address to establish a withdrawal schedule. Users can also select any amount and time period.

Using Average Dollar Cost to Buy Bitcoin

Averaging is a strategy of investing a fixed amount at regular, pre-determined intervals to spread purchases and lower the average cost of each stock. The approach helps develop a disciplined investing habit and reduces costs.

An example will help an investor better understand the cost average. Suppose someone invests $500 per month. In a bullish market, $500 will get less cryptocurrency, but when the market goes down, an investor can buy more cryptocurrency with the same amount. The strategy could reduce the average cost per coin, compared to what one would have ended up paying if they had bought all the cryptocurrencies at once when they were more expensive.

To buy Bitcoin, one might think of waiting for an opportune time when the price is low. However, timing the market is practically not possible for anyone. Instead, investors could opt for daily, weekly, or monthly savings to gradually turn their dollars into Bitcoin savings.

How Swan Bitcoin Works

Swan gives customers the freedom to automatically withdraw Bitcoin to their own self-custody address or place it with the platform’s institutional-grade custodian set up in their own name. They can access Bitcoin at will.

In addition to the consumer-focused face, the platform also offers Swan Private for businesses and high-net-worth individuals. One could seek expert advice regarding custody of Bitcoin, buy a large amount of BTC, or add Bitcoin to a company’s balance sheet. Swan Private helps businesses and high net worth individuals build generational wealth with BTC.

Swan has onboard experts with extensive experience in the Bitcoin ecosystem to help private clients build a personalized BTC savings plan. Investors can speak to a knowledgeable resource rather than clueless customer service, where one is more likely to exchange emails with a less experienced professional.

Swan’s advisory services facilitate the integration of Bitcoin into client portfolios, including reporting and rebalancing. Reports provide users with a detailed overview of their accounts. Portfolio rebalancing refers to the realignment of asset components within an investment portfolio to adjust for associated risks. Rebalancing involves buying or selling Bitcoin to reach the target asset allocation level.

Swan also brings a suite of open-source products for custody and use of Bitcoin, as well as multi-signature software. Members can also give Bitcoins to colleagues, friends and family.

How Swan helps save in Bitcoin

Through their approach of giving away altcoins, Swan allows customers to save in Bitcoin rather than trading the cryptocurrency. Bitcoin is among the few digital assets that are not considered a security but a property in the jurisdiction of the United States for the reason that it does not raise any capital and does not have a centralized marketing organization.

The decentralized nature of Bitcoin became evident in 2017, when several BTC mining companies, mining equipment manufacturers, major exchanges and a group of key Bitcoin developers collaborated to change the block size of the blockchain, but a network of globally distributed nodes thwarted their plans. Bitcoin has proven to be sufficiently decentralized and immutable in a real-world test.

With Swan, one can set up a daily, weekly, or monthly recurring purchase plan for Bitcoin. Most regulatory jurisdictions consider such a plan a cost saving. Once purchases are made, investors can withdraw BTC manually or set up an automated withdrawal plan that transfers Bitcoin to their own wallet. They can also pause or cancel Swan plans at any time.

Unlike the common approach to cryptocurrency investments, Swan also takes into account bear markets. Most investors buy Bitcoin with the expectation that its price will continuously rise, which is simply not possible as bear markets will always be there. Factoring in bear markets helps smooth out possible shocks when the coin is in a downward spiral.

How Swan Bitcoin Cuts Spending

Acting as a sort of savings account, Swan Bitcoin automates the purchase of BTC and provides users with an easily accessible and frictionless way to acquire Bitcoin. For competitive fees, users can sign up for recurring Bitcoin purchases. By focusing exclusively on BTC, Swan is able to make it easier to buy Bitcoin and significantly reduce costs.

Swan deployed the dollar cost averaging method as an incentive to prevent overspending or selling Bitcoin. What Swan brings to the table is completely different from regular exchanges that also have to manage an array of altcoins, which makes the process much more complex and increases the associated costs. Swan, as a Bitcoin-specific platform, is inherently designed to address these issues.

As a bitcoin-only platform, Swan does not need to run a node to verify altcoins like an exchange does, allowing it to eliminate high hardware, bandwidth, and human resource expenses. and pass the benefits on to users. It is designed for long-term savings plans and users can save money on fees they typically incur when making a series of small Bitcoin purchases.

Multi-coin platforms also have to manage a huge compliance department. Having so many coins on one platform complicates the security situation, which none of the stakeholders can afford. All of these factors translate into higher trading fees. When one buys Bitcoin on an exchange, one simply subsidizes these expenses for the exchange.

Is Swan Bitcoin safe

The bitcoin one buys through Swan belongs to Prime Trust, reputed to hold billions of dollars worth of cryptocurrency. This is different from an exchange-based purchase where Bitcoin directly controls the exchange and not the user.

Additionally, Bitcoin is stored with Prime Trust under the user’s name, making the user the sole legal owner. The cryptocurrency resides in offline cold storage wallets. For better account security, Swan uses one-time passcodes that are emailed to the user instead of username and password login credentials.

Even in an extreme case of Swan liquidation, users will have legal control of the funds stored within Prime Trust. Swan retains minimal user data to comply with regulations. It encrypts all that data with military-grade AES-256 and traffic with industry-standard TLSv1.2 encryption. The transfer of bitcoin and fiat cannot be done without users’ permission.

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