This App Invests Your Spare Change in Cryptocurrencies

Mashable and other tech news sources have recently taken to raving about a new app which provides investors with an easy way to focus their money into cryptocurrency investments. Coinflash is a service which rounds every credit and debit card purchase you make up to the nearest dollar, then takes the total difference to automatically invest into a cryptocurrency of your choice. The app uses Coinbase, the popular exchange and wallet service, as the basis for its investments. Coinflash may help to make the complicated, sometimes daunting world of cryptocurrency investing a bit easier and more approachable for the mainstream investor.

Minimum Fees, Ease of Use Are Key

Louis Lapat, the creator of Coinflash, wrote a post on Medium to announce the launch of the service. He describes Coinflash as "an investment tool for people that don't want to think about investing too much and keep it fun." Lapat explained that he will not sell user data to advertisers. Rather, he will cover basic operating costs for the app by charging $1 per month for users in order to access the service. There is also the possibility that Coinflash will add more expensive premium membership levels at some point in the future, although that has not yet been decided.

Lapat's Coinflash is not the first app of this kind, but it may be the first to make use of cryptocurrencies as the target investment area. Acorns is a similar app that was a model for Coinflash, although it focuses on more traditional investment areas.

Coinflash Investing Questions

One question that some investors may have is exactly how much of a given cryptocurrency they'll be able to buy with the equivalent of pocket change from their credit and debit card transactions. Considering that a single bitcoin is worth about $4,000, which is nearly quadruple what it was at the beginning of the year, it could take a very long time for those small investments to add up to something significant. And yet, that may be the entire point of the Coinflash system. Investors can comfortably and easily make small, incremental investments into cryptocurrencies (including some which are significantly less expensive than bitcoin) without even being aware of the difference in their bank accounts and credit card statements. After all, if the cryptocurrency market continues to grow at the rate at which it has been gaining so far this year, a small investment today could be worth a lot more money in just a few days or weeks.

Coinflash also offers users the opportunity to gain a small amount of exposure to the cryptocurrency world while not betting too much of their assets on a space that has proven to be notoriously volatile in its short history.


Valerie Krutanova