Speaking to 2018's bear market and its impact on crypto savers, Vimba CEO Sam Blackmore says: "The UK is a particularly interesting market, with a large appetite for digital asset classes, but a sensible and considered approach to risk. The current market conditions actually make a good case for the tried-and-tested dollar cost averaging technique involving smaller investments over time, which can be considered an effective way to avoid speculative bubbles and market volatility."
The launch will provide investors with the opportunity to engage with crypto assets in regular intervals and in smaller increments, as part of an overall strategy to weather the bear market - scheduled purchases of Bitcoin and Ethereum via Vimba, start at £10 a month.
Dollar cost averaging explained
Using a dollar cost averaging long-term investment strategy an investor buys the same fixed amount (£20 a month for example) of an asset every month. Rather than trying to perfectly time the market, buying the same amount regularly means the investor may sometimes pay more for an asset when prices are high, but will also pay less when prices are lower. Thus, over time an investor using dollar cost averaging will end up buying more of an asset at lower prices - and less when they are high.
Founded in New Zealand in 2014 (as MyBitcoinSaver), Vimba's subscription service offers users the choice to set up a predetermined investment amount each week through scheduled bank payments, and investments can be customised according to users' preferences. As part of its launch, Vimba will be offering UK-based users 0% service fees for the first 30 days.
The announcement of Vimba's entry into the UK market comes soon after the company received a grant from Callaghan Innovation - a New Zealand government agency supporting the development of New Zealand's high tech business sector. Blackmore says the grant will assist the company's expansion of its current service offering, including the introduction of new cryptocurrencies to the platform and scaling the network.