DCA (Dollar cost averaging), is an investment strategy that helps you stay disciplined as an investor. DCA has been the best strategy to help me stay sane and ride out market downturns over my 8-year investing journey. DCA is the best strategy to follow if you’re someone who FOMO’s often and wants to buy crypto at the top.
Here’s a simple example:
Let’s say you want to buy Bitcoin worth $10000. Instead of purchasing a lump sum of $10000 worth BTC in one go, you decided to buy Bitcoin worth $500 each day at 10 A.M. over the next 20 days. You would follow this strategy regardless of Bitcoin’s price and you would buy each day at the time.
The idea is to accumulate long-term, so instead of feeling FOMO, you can add discipline to your accumulation.
These are just a few of the many benefits of the DCA strategy.
Lower risk. Lower cost of purchaseDisciplined savings
In a separate guide, I will discuss additional benefits of DCA investing. At the moment, I believe that you understand DCA and are looking for DCA apps and bots to automate this strategy.
If so, continue reading to learn more about the top DCA bots on the crypto market.
Crypto Investors: The Best DCA Bots and Apps for 2022
1. Binance Earn – Auto-invest account
Let’s begin this DCA bots listing with Binance, the world’s most well-known crypto exchange. Here is a detailed review on Binance. Binance is the best cryptocurrency tool available. If you don’t use it yet, you should. Click the link to instantly create a Binance account
Register for a Binance Account
Binance recently added “Auto-invest”, a feature that allows you to accumulate crypto using the auto-pilot mode.
Here’s how to use Binance Auto-invest.
This feature can be accessed under Earn > Auto invest
Step 1: Choose the cryptocurrency you wish to purchase. Step 2 – Make a plan. Decide how much crypto you want to purchase and choose your stablecoin. Step 3 – Choose a recurring purchase frequency for crypto. Step 4 – Congratulations!
Binance is available almost everywhere in the world, except the USA, UK and Singapore. You don’t have to worry if you are not from one of these countries. The next DCA bot would be the perfect match for you.
You can also access this feature via the Binance mobile app. The DCA bot can be configured to use funds from your Binance savings account. There is not an option to limit the purchase frequency. Every now and again, they add more projects.
The Auto-invest feature is the best option for anyone who uses Binance and wants to use DCA.
2. Pionex DCA bot
Pionex, a cryptocurrency exchange, offers automated trading capabilities. There are 16 bots available, including the DCA bot. Pionex offers a fully functional mobile app. You can also access it via the web interface. Check out my previous review of Pionex.
Create Pionex Account
After you have funded your Pionex Account, you can simply choose the pair where you wish to start the DCA Bot.
You can select the Dollar-cost Averaging (DCA), bot, and begin configuring it on the web interface.
When you’re ready, click the Start button.
Pionex also offers other bots such as Martingale bot that would buy low and then sell high and Grid bot, which assists in making money on the sideways market.
Pionex is a great choice for anyone interested in the DCA Bot and who doesn’t mind using other crypto exchanges.
3. Coinrule (For Advanced Users).
Coinrule is not your average dollar-cost accumulation bot. It is far more powerful than other DCA bots. The DCA strategy allows you to set multiple rules for accumulating the coin of your choosing.
Test Drive Coinrule
Coinrule allows you to create automated trading and investing rules. Here’s an example of how to create a DCA bot that is time-based:
Different rules can be set. You can also set different rules, such as buying only when the price is below a certain level or when a technical indicator signals a buy signal. Here is an example: I have a BTC DCAbot that will only buy when the RSI falls below 30 per day.
You can also set up different rules for your bot. You can even set the bot to make a partial profit and then buy back at a lower price. You would be able to accumulate a lot more than the DCA bot.
You will need an API key to connect Coinrule DCA bot to your favorite crypto exchange. Then, configure a bot. This bot is not free, unlike Binance and Pionex. It costs a small fee.
Coinrule offers more control and advanced options for setting up your DCA bot, if you are comfortable with this interface.
Conclusion: The Best DCA Bots for Bitcoin and Crypto
There are many DCA bots on the market. However, the one above covers most of the DCA robots you will need. A simple DCA bot such as offered by Binance and Pionex is possible. Coinrule is a better choice if you are looking for something more complex.
It is now your turn to share your DCA accumulation strategy. What are your methods of executing this strategy? Is it buying it manually or using a bot? Please let me know what you think in the comments section below.
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