When you set up your account, you’ll decide how much you want to invest each month and on what day. Soon will transfer money from your bank account via ACH and convert it into USDC. From there it will be dollar-cost averaged into Soon’s standard portfolio of crypto assets.
For example, if you invest $300/month, Soon will break that $300 into $10 a day over 30 days. Then that daily $10 investment will be split across 5 crypto assets, resulting in 5 $2 positions each day, or 150 positions each month. This has the effect of spreading out your investment across various price points which increases the probability that at any given moment in the future, some of your positions will be up.
Soon’s algorithm is securely notified when you spend with your debit account. We’ll also help you connect additional spending accounts like credit cards or other debit accounts to capture as many spend events as possible. Your spending activity is secured and encrypted, allowing Soon’s algorithm to use the data, but it is only visible to you.
When Soon receives notice of a transaction, current market rates are received and each investment position is automatically rank-ordered from highest gain to lowest. Soon will then sell an amount of gaining positions that match the amount of your transaction. For example, if you walk into a coffee shop and spend $5 on a cup of coffee, Soon will be notified of the purchase within a few hours. Soon will then automatically sell up to $5 of your crypto gains and you’ll receive a notification that the crypto sale has occurred.
Soon pools all of the gains you’ve taken for the week, along with any losses that may have occurred due to tax-loss harvesting, and sends it back to your bank account once per week. That means your gains come back in the near-term and become immediately spendable once they return to your debit account.
Premium users also have the option to reinvest their earnings back into their Soon account, compounding their gains using the same automated dollar-cost averaging method.
Soon makes managing taxes extremely simple. Every transaction is tracked and when tax season comes around, Soon provides you with a simple document to file your capital gains taxes. But that’s not all, Soon also sets aside a portion of each gain in a Tax Stash which holds your capital gains taxes until it is time to file your taxes.
Soon also provides a tax-loss harvesting feature for premium users. This allows you to clear your biggest losing investment positions from the market and reduce your capital gains burden at the same time. That money is then released from the Tax Stash and can be reinvested or sent back to your bank account.