We are going to cover the top crypto DCA bots in the industry, and we’re also going to discuss what DCA trading is, how to DCA in crypto, and whether it is worth your time.
What’s DCA Trading Strategy?
Dollar-cost averaging (DCA) is an efficient investment strategy in which an investor divides up the total amount to be invested across periodic purchases of an asset to decrease the impact of volatility on the overall purchase. Especially if you find yourself FOMO-ing frequently or buying crypto at the top, DCA is one strategy that you should follow.
The DCA bot will purchase your crypto at the regularity you specify. This will happen as frequently as you specify; it’s up to you what you go with. It will do this without getting bored, and strictly too so that you don’t have to.
Here is a simple example of DCA:
Suppose, you wish to buy Bitcoin worth $5000. Instead of investing $5000 to buy BTC at once, you decide to buy worth $500 every day at 10 A.M. for the next 10 days. Irrespective of the price of Bitcoin, you execute this strategy of buying every day at a defined time.
Since the idea here is to accumulate for the long term, instead of giving into FOMO, you basically added discipline to your accumulation.
Here are some of the notable benefits of the DCA strategy:
- Reduces the risk
- Lower cost of purchase
- Disciplined saving
- Prevent bad timing
Best DCA Bots & Platforms to Use in 2022
- Binance-Earn-Auto Invest
Binance, which is the world’s most popular crypto exchange. If you have not yet used Binance, you are missing out on the best crypto tools. Use the link below to create an instant account on Binance Create Binance Account .
Binance has recently added a new feature called “Auto-invest” that will let you accumulate crypto in auto-pilot mode.
Here is how you can use the Binance Auto-invest feature:
You can access this feature under Earn > Auto invest.
Step 1 – Choose the crypto you want to buy.
Step 2 – Create a plan by choosing your preferred stablecoin and the buying quantity.
Step 3 – Select a recurring cycle on how often you want to buy crypto.
You are all set!
Binance is available everywhere across the globe, excluding the USA, UK, Singapore, and a few other sanctioned countries. If you are from one of these countries, worry not as the next DCA bot on this list is a perfect match for you.
- We can access this feature from both Binance mobile app and desktop.
- You can configure the DCA bot to use the funds in your Binance saving account.
- No option is available at this moment to set the number of times purchase should happen.
- Only a limited number of projects are part of the Binance auto-invest account. However, Binance is continuously adding more projects.
For those who currently use Binance and want to use the DCA feature, Auto-invest is what you need.
Pionex is one of the world’s 1st exchange platforms with 18 Free trading bots. Users can automate their trading 24/7 without always checking the markets, You can start using Pionex for free, and the platform charges only 0.05% on your trades.
Pionex has a fully-functional mobile app and desktop version,Once you have funded your Pionex account, select the pair for which you want to start the DCA bot.
On the web interface, from the right side select the Dollar-cost averaging (DCA) bot and start configuration.
Pionex is by far the best crypto DCA trading exchange in the industry currently, and we think that one of the biggest reasons for this is because it is absolutely free to use their DCA bot!
This means that you can automate your trading activity with your Bitcoin and other crypto coins, and you don’t have to pay a cent.
WunderTrading is the 3rd in our list,WunderTrading allows you to start trading and investing in crypto seamlessly. Copy traders, trade yourself using the advanced trading terminal, or create a fully automated trading bot using TradingView, The platform provides four different plans, including a free one. Prices range from $9.95 to $44.95, and you can get a %50 discount if you pay annually.
You can easily create a DCA trading bot on WunderTrading. Also, there are many DCA parameters that you can edit, like DCA orders count, DCA order price deviation, and more.
If you’re not familiar with such settings, you can always go for pre-made bots on WunderTrading’s marketplace, which has hundreds of working bots.
DCA in a Word.
The best thing about the DCA trading strategy is that it saves you time. There’s no need to be overly concerned about the market and what’s going on with it because your only concern is whether you think it will go up over time.