What is DCA in crypto? Dollar Cost Averaging Crypto is the most stress free way to invest into bitcoin. DCA’ing into bitcoin means investing a fixed, smaller amount of dollars (or euros, or your local fiat shitcoin) into bitcoin at a regular interval (every month, week or even day). This minimises volatility risks. If the price goes down, you get more sats (satoshis, the smallest unit of bitcoin) and if the price goes up your holdings are worth more. You win either way.
In an ideal world, it’s simple: buy low, sell high. In reality, this is easier said than done, even for experts. Instead of trying to “time the market,” many investors use a strategy called dollar-cost averaging (or “DCA”) to reduce the impact of market volatility by investing a smaller amount into an asset — like crypto, stocks, or gold — on a regular schedule.- Coinbase
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Benefits of Bitcoin DCA
Bitcoin DCA provides bitcoin investors with a number of benefits. Some of the benefits are:
- Good for small investors. Since the invested amount is a smaller amount over a period of time, it means even small investors can participate in bitcoin DCA.
- Lower risks. Protects you from the risk of investing large amount of money into a single asset and expose yourself to huge losses
- Less effort. No need to time the market as volatility is no longer an issue to you as an investor
- Less emotional stress. It helps investors to invest in peace and avoid panic buying or selling
How to DCA Crypto
Once you have decided that your DCA strategy involves a crypto asset (best crypto for DCA is bitcoin), you set aside a small amount that you will be investing on a regular basis. For example, instead of investing $1000 when the price is right, you invest %20 every week regardless of the price of bitcoin. To do this, you need to choose the best bitcoin DCA strategy and best DCA crypto exchange that offers Dollar Cost Averaging option.
Bitcoin-only DCA Exchanges (Best Exchange for DCA)
| countries | exchange / language | launched | easy DCA | payment methods |
|---|---|---|---|---|
| Global (including US, UK, and Germany | Swan Bitcoin, English | 2019 | yes | ACH, Wire (for international customers) |
| United States | River Financial, English | 2019 | yes | ACH |
| EU, CH | StackinSat francais | 2019 | yes | SEPA |
| CH, EU | Relai, francais Espaniola deutsch italiano English | 2019 | yes | SEPA |
| Australia | Amber, English | 2017 | yes | Apple/Google Pay, Credit/Debit Card, EFT, PayID |
| Canada | Bull Bitcoin, English | 2015 | yes | e-Transfer, Direct Debit, Wire Transfer, Desjardins Transfer, L-CAD |
| Nigeria | Bitnob, English | 2020 | yes | Flutterwave’s OVVAR voucher |
Other Bitcoin-only alternatives
| countries | exchange / language | launched | easy DCA | payment methods |
|---|---|---|---|---|
| NL, BE | Bitonic, Nederlands, English | 2012 | no | iDeal, Bancontact (currently no SEPA!) |
| EU | BL3P English | 2012 | no | SEPA |
None of these are selling shitcoins, with a preference to simplicity and DCA.
Shitcoining is bad for your financial health.
Friends don't let friends buy shitcoins.
A shitcoin a day keeps your riches away. https://t.co/aGDGEXXGNx
— BitcoinAlly Ph₿ بيتكوين آلي 比特币阿里 (@bitcoin_al) September 21, 2020
Best DCA Bitcoin Exchange Alternatives Without KYC
KYC means “Know Your Customer”. It also means that when you sign up to an exchange your data will be with them basically forever. And a lot of this data leaks, which can make you a target for criminals (this may include government agents). Hodl Hodl and Bisq are great solutions without any KYC but don’t seem appropriate for beginners. A great alternative is possible if a good friend or relative is willing to sell you some.
Final Thoughts on Best DCA Crypto Exchange
If you want to invest using bitcoin and other cryptocurrencies, DCA is one of the best strategies one can use. Cost averaging strategy will allow you to invest a fixed amount at a regular interval no matter the price. By consistently spreading your investment, you will mitigate price volatility or any other risks. Take time to explore the best exchanges to DCA bitcoin that we have listed above.
