Buying Bitcoins Slowly and Easily

Lawnmower is a new app that lets you buy bitcoins easily

Alex Sunnarborg (CFO), Pieter Gorsira (CEO), and Patrick Archambeau (CTO) of Lawnmower. Jack Tatar

I’ve been an investor for over thirty years and I’ve always believed in building wealth slowly and steadily.  One of the ways to do this is with a concept called dollar cost averaging, which is the method of buying investments on a regular basis regardless of the price of the investment. 

Typically, this is done for mutual funds where the investor can assign a set purchase amount to be made at regular intervals.

These intervals occur when the mutual fund is at various prices with the thinking that sometimes you’ll buy high and sometimes you’ll buy low, but over time, if the investment is good, your overall cost basis on the investment should be below the long-term value of the investment.  It works best for long term investments and for those looking to build wealth patiently.

Readers of this site know that I not only view bitcoin as a virtual currency with the potential to disrupt and modernize the current financial systems but also see it as an investment vehicle for those who believe in its potential capabilities.  As such, I’ve discussed how investors can now invest in ETFs to gain bitcoin exposure as well as just buying bitcoin directly.  With so many quality exchanges appearing, it’s easy to exchange dollars for bitcoin and build up your own bitcoin wallet.

A recent app I discovered allows you to not only buy bitcoin directly but provides access to doing so on a dollar cost averaging basis while also making it fun as well.

The app is Lawnmower and was developed by three college buddies (Alex Sunnarborg (CFO), Pieter Gorsira (CEO), and Patrick Archambeau (CTO)) who moved from Florida to San Francisco to pursue their dream of creating an application that was fun, easy to use and allows people to invest easily into bitcoin.

The concept of Lawnmower is based on the “loose change” model of saving.  Basically, you connect your bank and credit card accounts to this app and anytime you use a credit or debit card, you can round up the change and save that amount in bitcoins.  You’ll need to have an account with Coinbase, where your purchases of bitcoin will be made (or you can sign up for an account easily through the Lawnmower app). However, you can have your bank account, debit or credit card virtually anywhere. 

The application is aligned with a service called Plaid, which provides access to over 18,000 banks so that you can track your spending at any, and all, if you choose, of your bank accounts or credit card accounts, and move your “loose change” from purchases made into your Coinbase account and buy bitcoin based on the intervals that you choose (when your change reaches $10, $20, etc.).

For example, if you spend $23.69 on your credit card, you can round the total up to $24 and move 31 cents into your Lawnmower account.  When your account reaches a certain level of your choosing, let’s say when it hits $10, then $10 worth of bitcoin will be automatically purchased in your Coinbase account (which is connected to your designated bank account).

For the specifics on the process, it’s best to check the website for Lawnmower at https://lawnmower.io/ (check out their current $5 promo as well).

I’m using the app as a way to easily add more bitcoin into my Coinbase account on a dollar cost basis.  As the price of bitcoin continues on its roller coaster ways, I can just sit back and roll up my “loose change” into bitcoin while following the time-tested method of dollar cost averaging for investments. 

It’s certainly a different world from when I first began investing thirty years ago.