DCA (Dollar-cost averaging) is an investment strategy that adds discipline to your journey as an investor. In my 8 years of investing journey, DCA is one strategy that has helped me the most to stay sane, ride out market downturns, and reduced my risk. Especially if you are someone who often finds yourself FOMO’ing frequently, and buying crypto at the top, DCA is the strategy that you should be following.
Here is a simple example of DCA:
Suppose you wish to buy Bitcoin worth $10000. Instead of buying a lump-sum of $10000 worth BTC at one go, you decided you would buy worth $500 every day at 10 A.M. for the next 20 days. Irrespective of the price of Bitcoin, you would execute this strategy, and buy every day at the defined time.
Since the idea here is to accumulate for the long term, instead of buying feeling 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
There are more benefits of the DCA investing strategy that I will cover in a separate guide. For now, I would like to believe you are someone who understands what DCA is and the benefits of it and looking for DCA bots and apps that could help you automate this strategy.
If this is right, read on to discover the best DCA bots in the crypto market.
Best DCA Bots and Apps to use in 2022: Crypto Investors
1. Binance Earn – Auto-invest account
Let’s start this DCA bots list with Binance, which is world’s most popular crypto exchange. I have shared a detailed review of Binance here. If you have not yet used Binance, you are missing out on trying the best crypto tool out there. Use the link below to create an instant account on Binance
Binance has recently added a new feature called “Auto-invest” which will let you accumulate crypto in the 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 how much you want to buy and select your preferred stablecoin.
Step 3 – Select a recurring cycle on how often you want to buy crypto.
Step 4 – You are all set!
Binance is available in almost all the countries of the world, excluding the USA, UK, Singapore, and a few sanctioned countries. If you are from one of these countries, worry not as the next DCA bot on this list would be perfect for you.
- We can also access this feature from Binance mobile app
- You can configure the DCA bot to also use the funds in your Binance saving account
- There is no option at this moment to set the number of times purchase should happen
- There are only limited number of projects which are part of Binance auto-invest account. They are adding more projects every now and then
Overall, for those who are using Binance and looking to use DCA feature, the Auto-invest is what you need.
2. Pionex DCA bot
Pionex is a crypto exchange that offers automated trading features. It has over 16 different bots, and one of them is the DCA bot. Pionex has a fully-functional mobile app, and you can also access it using the web interface. If you are new to Pionex, read my earlier review of Pionex.
Once you have funded your Pionex account, simply select the pair in which you want to do start the DCA bot.
On the web interface, from the right side select the Dollar-cost averaging (DCA) bot and start configuring it.
Once you are ready, click on the Start button.
Pionex offers many more bots, for example, Martingale bot would automatically buy low and sell high, and Grid bot which helps in making money in the sideways market.
Overall, for anyone who is interested in the DCA bot and doesn’t mind using another exchange other than the popular crypto exchanges, Pionex is an ideal solution.
3. Coinrule (For Advanced Users)
Coinrule is not your typical dollar-cost averaging accumulation bot and it is more powerful than any other DCA bots out there. You can set multiple rules to accumulate a coin of your choice using the DCA strategy.
Coinrule is an automated trading bot creation platform that lets you set automated rules for trading or investing. For example, here is how you will set a time-based DCA bot:
You can also set different rules. For example, buy only when the price threshold is below certain value or even when a certain technical indicator gives a buy signal. For example, here I’m configuring a BTC DCA bot to buy only when RSI is below 30 in daily time frame.
Like this, you can configure different rules for your bot. For example, you can also configure the bot to book partial profit and buy back when the price is low. This way, you would accumulate way more than the usual DCA bot.
To use Coinrule DCA Bot, you need to connect it to your preferred crypto exchange using an API key, and then configure a bot. Unlike Binance and Pionex, this is not a free bot, and it cost a nominal fee.
Overall, for users who are ok with such an interface, Coinrule gives more control and advanced offerings to set up your DCA bot.
Conclusion: Best DCA bots for Bitcoin and Crypto
Of course, there are many more DCA bots available in the market, but the above-mentioned covers almost all the DCA bots that you would be needing. You can use a simple DCA bot like offered by Binance or Pionex. If you looking for something more advanced, Coinrule is your best bet.
Now it is your turn to share your strategy of DCA accumulation. How are you executing it? Are you manually buying it or are you using a bot to execute the DCA strategy? Let me know in the comment section below.
Harsh Agrawal is the Crypto exchange and bots expert for CoinSutra. He founded CoinSutra in 2016, and one of the industry’s most regarded professional blogger in the fin-tech space.
An award-winning blogger with a track record of 10+ years. He has a background in both finance and technology and holds professional qualifications in Information technology.
An international speaker and author who loves blockchain and crypto world.
After discovering about decentralized finance and with his background of Information technology, he made his mission to help others learn and get started with it via CoinSutra.
Join us via email and social channels to get the latest updates straight to your inbox.