Customers of the UK's oldest Bitcoin exchange Coinfloor are now incentivized to stack sats — and to keep at it.
The firm is updating its fee structure for automated bitcoin-buying services: those who regularly stack sats using the feature will enjoy a gradual decrease in fees. Every three months, autobuy fees will be reduced by 0.25%, until the fees hit zero and stacking becomes free of charge. To achieve the fee reduction, users need to use the autobuy feature at least once a month to purchase around £100 ($120), Coinfloor CEO Obi Nwosu told the BTC Times.
The reason for the move is to "incentivize people to develop a sound investment philosophy and think long-term," Nwosu said. By rewarding users with gradual fee savings rather than going for an immediate fee reduction, Coinfloor hopes to encourage its customers to develop a wider time horizon and stick with the stacking, making dollar-cost averaging a regular routine rather than a sporadic emotion-driven decision.
In fact, the majority of Coinfloor's users already uses the autobuy feature, according to Nwosu; Coinfloor users can set their preferred purchase amount and intervals in the exchange's mobile app.
In addition to cutting auto-DCA fees, Coinfloor is also halving the fees for lump sum single-buy bitcoin purchases on its app, with fees falling to 0.99%.
While the decision to cut fees will inevitably affect the exchange's bottom line, Nwosu is not worried: Coinfloor's trading operations continue as usual, and the decision to enable free dollar-cost averaging after 12 months has been made for the long term, he said: "we want to instill the right investment behaviours in every customer by making it easy for them to stack sats and iron out the daily fluctuations in Bitcoin’s price through dollar-cost averaging."
Coinfloor has previously shown its dedication to Bitcoin when it delisted all other assets from its exchange and became a Bitcoin-only platform, with Nwosu arguing that Bitcoin is "the only game in town."