Bits Crypto Raises $1.2M to Facilitate Gradual Investments in Crypto
Summary
Fintech startup Bits Crypto has raised $1.2 million in pre-seed funding to build out its mobile crypto-investment application. From there its invested across the basket in $25 increments to avoid heavy gas fees.Bits also lets users select amounts for daily, weekly and monthly automatic investments.Financial services companies such as Robinhood and Cash App currently offer crypto-roundup features. However, these require the use of these platforms native credit cards.Rader calls this a major product differentiator, as Bits utilized banking software Plaid to allow users to plug in any debit card, credit card or bank account to begin roundups and scheduled investments.Bits has integrated Coinbase for users to invest in tokens listed on the exchange as well as withdraw their profits via Coinbase wallet.According to Chief Operating Officer Alex Poscente, the integration of Coinbase and Plaid allows the product to operate across all 50 states in the U.S.Its also building out educational content, called Tidbits, to educate and onboard users new to the crypto space on what tokens are available to purchase. After trending twice on Reddit as the top thread in the 5.1 million-member large cryptocurrency community for its beginner descriptions of every coin available on Coinbase, its making an effort to make its application not only user-friendly but also educational for beginners.An early user of Bits told CoinDesk that she likes the apps orientation toward onboarding users new to the crypto space.It definitely has changed my view [of investing in crypto] in the sense that one, Im not scared and two, Im actually able to act and be active in this space as well, as an investor, the user told CoinDesk.The funding round also saw participation from venture capital funds Founders Inc. and Founders Committee.Bits plans to launch its app for the public in September. Eventually, the team hopes to make a fully decentralized, on-chain custodial Bits wallet by early 2023.