Best Auto-DCA services in Bitcoin

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Source: Adobe / Andrey Popov

Anyone who has been involved in the bitcoin (BTC) space for some time has probably heard that the way forward is to forget about short-term trading and follow the Average Dollar Cost (DCA) strategy instead. But what exactly is DCA and what services are there to help you automate the process to unlock the full potential of the powerful DCA bitcoin strategy?

The average dollar cost strategy

Simply put, dollar cost averaging, or DCA for short, is the process of breaking down an investment into a series of smaller purchases spread out over time, rather than investing in a larger investment. important at the same time.

Portfolio value over time of 200 USD invested every 2 weeks, starting at 3 years. Each point represents a purchase. The current value of the portfolio is 89,800 USD. Source: dcaBTC.com

The simple idea behind this concept is that timing the market is, in all fairness, nearly impossible for most investors. As a result, spreading purchases over a period of time with fixed intervals means that an investor can channel the volatility of an asset to their advantage.

Sometimes the investor would buy when the price is high, but he will also buy when the price is low and most other buyers are too afraid to buy. For a volatile asset like bitcoin, this becomes particularly important.

And since the goal of the DCA strategy is to keep buying when there is fear in the market, the best way to overcome this mental hurdle is to automate buying so that no manual action is required.

So, to help you start your own DCA journey, we’ve done the research for you and listed some of the most popular dedicated auto-DCA services for BTC in different regions of the world:

Amber (United States and Australia) Source: play.google.com

An Australian fintech company started in 2017, Amber is a DCA service dedicated only to bitcoin. For now, the service is only available to residents of the United States and Australia, but the company has announced plans to add support for other countries in the future.

The main advantage of using Amber is its simplicity and straightforward pricing structure. The company has a mobile app that offers recurring bitcoin purchases, and only that.

The downside to Amber is the rather steep 2% fee on bitcoin purchases for non-paying Basic members. On the other hand, customers who choose to pay a flat fee of $ 18 per month and thus qualify for Amber Black membership, will not be charged any fees on bitcoin purchases.

In addition, there is also a fee of between 1.2% and 1.8% for funding an account with credit cards, but this can be avoided by opting for account funding through the option of free financing EFT (electronic funds transfer in the United States).

Swan Bitcoin (US / International) Source: swanbitcoin.com

Based in Los Angeles, Swan Bitcoin primarily serves the US market for recurring bitcoin purchases, although it says it supports most other countries as well.

The downside for non-U.S. Users, however, is that funds must be transferred to Swan Bitcoin via international wire transfers, as the company does not accept credit cards or popular online money transfer services like PayPal and Wise. Unsurprisingly, this can prove to be costly for many international users.

For US investors, on the other hand, Swan Bitcoin’s usage fees are more reasonable, ranging from 1.19% to 2.29%, depending on the amount of the recurring purchase. In addition, however, the company also charges a fee of between 0.99% and 1.49% for depositing funds on the platform, which can bring the total fee to 3.78%.

River Financial (US only) Source: river.com

San Francisco-based River Financial is another bitcoin-only DCA service that caters to the US market. The service works by asking the user to link their bank account and then set up recurring purchases.

Perhaps the best thing about River Financial is the simple, low fees for recurring purchases. For purchases less than $ 200, the company charges a fixed amount between $ 1.19 and $ 2.39. Meanwhile, purchases over $ 200 come with a fee percentage ranging from 1.20% for smaller amounts to 0.64% for larger amounts.

River Financial also has an iPhone app – but no Android app – that allows users to track their bitcoin purchases from their phones.

Bittr (Europe) Source: getbittr.com

Available only in European countries that support SEPA (Single Euro Payments Area), Bittr is a Swiss-based company exclusively based on bitcoin. The special thing about Bittr is that instead of accumulating bitcoins on its platform, it automatically sends the coins it has purchased on behalf of a customer to the wallet address chosen by the customer.

Since the bitcoin buying process happens automatically whenever Bittr receives funds from a user, a DCA policy can be implemented by setting up a recurring SEPA payment from the user’s bank account. .

Best of all with Bittr is that the onboarding process is easy with very limited Know Your Customer (KYC) controls in place. The fees are also reasonable with a flat charge of 1.5% on each deposit made to the company.

Unlike some other DCA services, Bittr does not support reselling bitcoins to the business. However, since the coins are kept in the user’s wallet, they can be relatively easily transferred and sold elsewhere.

Relai (Europe) Source: play.google.com

Similar to Bittr, Relai is another Swiss bitcoin company that allows users to set up recurring bank transfers for the company to buy bitcoin. The bitcoins can then be sent automatically to any wallet address, meaning the user retains full custody of their coins.

Again, the main advantage of using Relai is that the app does not ask for any personal information other than the account number from which the funds will be sent. The charges for using the service are a flat rate of 3%. Unlike Bittr, however, these fees include both a business service fee and a bitcoin transaction fee.

A good advantage of using Relai is also that it allows its users to resell BTC if they wish, which saves them the trouble of finding other venues for their bitcoin sales.

Source: fastbitcoins.com

The global bitcoin marketplace FastBitcoins.com also supports recurring bitcoin purchases through its auto-buy feature, in addition to traditional flat-rate purchases.

The advantages of using FastBitcoins.com include the global reach of this service and the fact that it is possible to make purchases with physical money in selected locations (mainly in Canada, Europe and Australia. ), in addition to bank transfers.

Fees vary depending on the deposit method used, with bank payments charged 2% and cash deposits 4%.

Although the company has stated that it believes financial privacy is a basic human right, FastBitcoins.com will still require its users to upload copies of identity documents such as passports or driver’s licenses.

Other options

Finally, we must also mention that there are several traditional crypto exchanges that also allow users to set up recurring purchases of not only bitcoin, but also any cryptoassets they want. While these are not dedicated DCA services, they can be convenient options for people who are already using these exchanges. Among these are Binance, Binance.US, Gemini, Coinbase, and others.

Keep in mind, however, that the fees may differ from regular spot trading when using exchanges to DCA using the instant buy features. To make matters worse, exchanges often make it difficult to understand the real costs associated with recurring purchases via Instant Buy, perhaps making the dedicated DCA services listed above a more streamlined method for most investors to use.

Disclaimer: Cryptonews.com does not endorse any of the services listed in this article. We are not responsible for the use of these services. Always do your own research before depositing funds ._____

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