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 strategy has helped me the most to stay sane, ride out market downturns, and reduce risks. Especially if you find yourself FOMO-ing frequently or buying crypto at the top, DCA is one strategy that you should follow.
Here is a simple example of DCA:
Suppose, you wish to buy Bitcoin worth $10000. Instead of investing $10000 to buy BTC at once, you decide to buy worth $500 every day at 10 A.M. for the next 20 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
There are more benefits of the DCA investing strategy that I will cover in a separate guide. For now, I am assuming that you understand DCA and are looking for DCA bots and apps to help you automate this strategy.
If this is true, continue reading to discover the best DCA bots in the crypto market.
Best DCA Bots and Apps to Use in 2022 for Crypto Investors
1. Binance Earn – Auto-Invest Account
Let’s start this DCA bots list with Binance, which is the 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 the best crypto tools. Use the link below to create an instant account on Binance
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.
2. Pionex DCA Bot
Pionex is a crypto exchange that offers automated trading features. It has over 16 different bots of which DCA is a popular one. Pionex has a fully-functional mobile app and desktop version. If you are new to Pionex, read my earlier review of Pionex.
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.
Once you are ready, click on the Start button.
Pionex offers many bots like the Martingale bot that automatically buys low and sells high. Another one called Grid bot helps you make money in the sideways market.
For anyone who is interested in the DCA bot and doesn’t mind using exchanges other than the popular crypto exchanges, Pionex is an ideal solution.
3. Coinrule (For Advanced Users)
Coinrule is a more powerful bot than any other DCA bot. 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 can set a time-based DCA bot:
You can also set different rules. For example, buy only when the price threshold is below a certain value or a certain technical indicator gives a buy signal. 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 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 configure the bot. Unlike Binance and Pionex, it costs a nominal fee.
Coinrule gives more control and advanced offerings to set up your DCA bot.
Bitsgap is a multipurpose quant tool for crypto traders and investors. I have talked about Bitsgap earlier in my review of Bitsgap. You should read it if you have missed it.
The basic feature of the Bitsgap DCA bot is the same as most of the other DCA bots listed here. What I find exciting is the feature to initiate the DCA bots based on various signals.
Here are the detailed explanation of upcoming DCA bot features by Bitsgap:
- MACD+RSI – A one-click strategy with the two most popular indicators for the ‘trend is your friend’ kind 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 repeatedly trade by the signal while staying inside the channel and just HODL and use Trailing Stop once the price breaks outside.
- Pure DCA: A quick launcher for the DCA-only strategy that will buy by market, place limit orders to buy cheaper, take profit, and repeat. The lower is the order, the larger is the size, so the break-even price is dragged closer. As long as the crypto market moves in phases, this strategy may work surprisingly well in the long run.
- Custom DCA: Create your own trading strategy using all available signal sources, DCA settings, risk management tools and additional bells and whistles. See detailed calculations of everything before starting a bot. Save and load templates and much more
Best DCA Bots for Bitcoin and Crypto
Of course, there are multiple DCA bots available in the market right now but the ones mentioned above cover almost all the DCA bots that you may need. 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.