cryptoshitcompra.com/wp-content/uploads/2021/09/Los-mejores-servicios-Auto-DCA-en-Bitcoin.jpg »alt =» Set and forget: the best Auto-DCA services in Bitcoin 101 ″ class = » content-img »/> Source: Adobe / Andrey Popov
Anyone who has been involved in the bitcoin (BTC) space for some time has probably heard that the way to go is to forget about short-term trading and instead stick to the dollar cost average (DCA) strategy. But what exactly is DCA and what services are there to help you automate the process to unleash the full potential of the powerful Bitcoin DCA strategy?
dollar cost averaging strategy
Simply put, dollar cost averaging, or DCA for short, is the process of dividing an investment into a series of smaller purchases over time, rather than investing in a larger investment at the same time.
png »alt =» Set and forget: the best Auto-DCA services in Bitcoin 102 ″ class = »content-img» /> Portfolio value over time of 200 USD invested every 2 weeks, starting 3 years ago years. Each point represents a purchase. current value of the portfolio is $ 89,800. Source: dcaBTC.com
simple idea behind this concept is that market timing is, in all honesty, next to impossible for most investors. Consequently, spreading purchases over a period of time with fixed intervals means that an investor can channel the volatility of an asset in their favor.
Sometimes the investor buys when the price is high, but also buys when the price is low and most other buyers are too scared 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 purchases so that no manual action is required.
So, to help you get started on your DCA journey, we’ve done the research for you and listed some of the popular dedicated auto-DCA services for BTC in different regions of the world:
Ambra (United States and Australia)
png »alt =» Set and forget: the best Auto-DCA services in Bitcoin 103 ″ class = »content-img» /> Source: play.google.com
An Australian fintech company founded in 2017, Amber is a dedicated DCA service just for bitcoin. For now, the service is only available to residents of the United States and Australia, but the company says it plans to add support for more countries in the future.
main advantage of using Amber is its simplicity and simple commission structure. company has a mobile app that offers recurring bitcoin purchases and stuff.
downsides to Amber is the fairly high commission of 2% on bitcoin purchases for “Basic” members who don’t pay. On the other hand, customers who choose to pay a flat fee of USD 18 per month and therefore qualify for ‘Amber Black’ membership, will not be charged for bitcoin purchases.
Additionally, there are also fees ranging from 1.2% to 1.8% for financing an account with credit cards, but this can be avoided by choosing to fund the account through the EFT (Electronic EE Funds Transfer) financing option. Free of charge.
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Swan Bitcoin (US / International)
Based in Los Angeles, Bitcoin Swan primarily serves the US market for recurring bitcoin purchases, although it claims that it is compatible with most other countries as well.
However, the downside for non-US users is that funds must be transferred to Swan Bitcoin via international bank transfers, as the company does not accept credit cards or popular online money transfer services such as PayPal Y Sabio . Unsurprisingly, this can be expensive for many international users.
For US investors, however, the fees for using Swan Bitcoin 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 fees of between 0.99% and 1.49% for depositing funds on the platform, which can bring the total charge up to 3.78%.
River Financial (US only)
Based in San Francisco, Rio Financial is another bitcoin-only DCA service targeting the US market. service works by having the user 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 of less than $ 200, the company charges a fixed amount between $ 1.19 and $ 2.39. Meanwhile, purchases over $ 200 come with a percentage rate ranging from 1.20% for smaller amounts to 0.64% for larger amounts.
River Financial also has an iPhone app, but not an Android app, allowing users to keep track of their bitcoin purchases from their phone.
Available only in European countries that support SEPA (Single Euro Payment Zone), Bittr is a purely bitcoin- based company based in Switzerland. peculiarity of Bittr is that instead of accumulating bitcoins on its platform, it automatically sends the coins that it has bought on behalf of a customer to the wallet address chosen by the customer.
Since the bitcoin purchase process happens automatically every time Bittr receives funds from a user, a DCA strategy can be implemented by setting up a recurring SEPA payment from the user’s bank account.
best thing about Bittr is that the onboarding process is easy with very limited KYC checks. fees are also reasonable with a flat fee of 1.5% on each deposit made to the company.
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Unlike other DCA services, Bittr does not support the sale of bitcoins to the company. However, as the coins are stored in the user’s wallet, they can be easily transferred and sold elsewhere.
Similar to Bittr, Relais is another Swiss bitcoin company that allows users to set up recurring bank transfers for the company to buy bitcoin. bitcoins can then be sent automatically to any wallet address, which means that the user maintains full custody of their coins.
Again, the main benefit of using Relai is that the application does not ask for any personal information, apart from the account number from which the funds will be sent. fee for using the service is set at 3%. However, unlike Bittr, this fee includes both a service fee for the business and any bitcoin transaction fees.
A nice advantage of using Relai is also that it allows its users to resell BTC if they wish, saving them the hassle of finding other places for their bitcoin sales.
FastBitcoins.com global bitcoin marketplace also supports recurring bitcoin purchases through its automatic purchase feature, in addition to traditional flat-fee purchases.
benefits of using FastBitcoins.com include the global reach of this service and the fact that purchases can be made with physical cash in select locations (primarily Canada, Europe, and Australia), as well as wire transfers.
Fees vary depending on the deposit method used, bank payments carry a 2% charge and cash deposits a 4% charge.
Although the company claims that “financial privacy is a fundamental human right,” FastBitcoins.com will still ask its users to upload copies of identity documents such as passports or driver’s licenses.
Finally, we should also mention that there are several traditional cryptocurrency exchanges that also allow users to set up recurring purchases not only of bitcoins, but of any crypto asset they want. While these are not dedicated DCA services, they can be profitable options for people who are already users of these exchanges. Among these are Binance , Binance.IT , Twins , Coinbase, and another.
However, please note that fees may differ from normal spot trading when trading DCA using ‘instant buy’ features. To make matters worse, exchanges often make it difficult to understand the true costs associated with recurring purchases through instant purchase, perhaps making the dedicated DCA services listed above a more streamlined method for most to use. Investors .____
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Disclaimer: Cryptonews.com does not endorse any of the services listed in this article. We do not assume any responsibility for the use of these services. Always do your research before depositing funds ._____
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