DCA (Dollar cost averaging), is an investment strategy that helps you stay disciplined as an investor. DCA strategy has been my best friend throughout 8 years of investing. It has helped me to remain sane, endure market downturns and minimize risks. DCA strategy is a great option, especially if you are FOMO-ing often or investing in crypto at the top.
Here’s a simple example:
Let’s say you want to buy Bitcoin worth $10000. Instead of spending $10000 on Bitcoin at once, you decide that $500 per day will be enough to purchase BTC for the next 20-days. You buy Bitcoin every day, regardless of its price.
You can now accumulate for the long-term, so instead of succumbing to 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. Assume that you are familiar with DCA and are searching for DCA apps and bots to automate your strategy.
Continue reading to learn more about the top DCA bots on the crypto market.
Crypto Investors: Best DCA Bots & Apps for 2022
1. Binance Earn – Auto-Invest account
Let’s begin this DCA bots listing with Binance, the most well-known crypto exchange in the world. Here is a detailed review on Binance. Binance is one of the most popular crypto tools. 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 in autopilot mode.
Here’s how to use Binance Auto-invest.
This feature can be accessed under Earn > Auto invest
Step 1: Choose the crypto that you wish to purchase. Step 2 – Choose your preferred stablecoin, and the amount you want to buy. Step 3 – Choose a recurring pattern for how often you will buy crypto. Now you are done!
Binance is available all over the world, except the USA, UK and Singapore. You don’t have to be from these countries as the next DCA bot is perfect for you.
This feature is accessible from Binance’s mobile app as well as the desktop. Binance continues to add projects.
Binance users who want to use DCA are best served by Auto-invest.
2. Pionex DCA Bot
Pionex, a cryptocurrency exchange, offers automated trading capabilities. There are 16 bots, of which DCA is the most popular. Pionex offers both a mobile and a desktop version. Check out my previous review of Pionex.
Create Pionex Account
After you have funded your Pionex Account, you can select the pair you wish to start the DCA Bot.
You can configure the website interface by selecting the Dollar-cost Averaging (DCA bot) option from the right side.
When you’re ready, click the Start button.
Pionex has many bots, such as the Martingale bot which automatically buys low and then sells high. Another bot, Grid bot, helps you make money on the sideways market.
Pionex is a great solution for anyone interested in the DCA Bot and who doesn’t mind using other crypto exchanges.
3. Coinrule (For Advanced Users).
Coinrule is more powerful than any DCA bot. The DCA strategy allows you to set multiple rules for accumulating a coin.
Test Drive Coinrule
Coinrule allows you to create automated rules for investing or trading on the platform of automated trading bots. Here’s an example of how to create a DCA bot that is time-based:
Other rules can be set. You can also set different rules, such as buy only when the price is below a specific value or when a technical indicator signals a buy signal. Here, I am configuring a BTC DCAbot to 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 more than the DCA bot.
You will need an API key to connect Coinrule DCA bot to your favorite crypto exchange and configure it. It is not as expensive as Binance or Pionex.
Coinrule offers more control and advanced options to help you set up your DCAbot.
Bitsgap can be used as a multipurpose tool to calculate the value of crypto investors and traders. In my Bitsgap review, I already mentioned Bitsgap. If you haven’t read it, I recommend it.
The Bitsgap DCA Bot’s basic features are the same as the majority of other DCA bots on this site. The feature that allows you to start DCA bots using different signals is what I find most exciting.
Below is a detailed explanation of the upcoming DCA bot features from Bitsgap
MACD+RSI is a one-click strategy that uses the most popular indicators to trade the “trend is your friend” style of trading. The bot will attempt to jump in a trend and follow it until receiving a closing signal from the same indicators or from the risk safeguards.Stochastic+Channel – Also a one-click strategy with the combination of support/resistance lines and Stochastic oscillator for the sideways market. The bot will trade according to the signal repeatedly while staying within the channel. Once the price breaks outside, it will use Trailing Stop and HODL. Pure DCA: This is a quick launcher for DCA-only strategies that will buy by market and place limit orders to purchase cheaper. Take profit and continue. The break-even price will be dragged closer to the smaller the order. This strategy can work as long as the market is moving in phases. Before you start a bot, see the detailed calculations. You can save and load templates, and more. Try it Free for 7 days
5. Crypto.com DCA Bot
Crypto.com, a popular cryptocurrency exchange, now offers a DCA Bot. There are two types of DCA bots available:
BotManual Automated Bot
The Crypto.com DCA Bot is worth featuring some of these features:
Stop lossSet DCA frequencySet profit
This video explains how to set up a DCA Bot on the Crypto.com platform.
The Best DCA Bots For Bitcoin and Crypto
There are many DCA bots on the market, but these two cover most of the DCA robots you might 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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