Manual bitcoin investment brings a risk of buying high instead of low (meaning at a low price) due to the usual high BTC volatility. Therefore it is better to not invest everything in one moment, but rather to split the investments into hundreds, thousands, or even more to minimalize the risk of buying at an inconvenient price and rather find good prices for most of the investments. This approach of periodical investments is common for the DCA strategy. In general, DCA is the most powerful in the bear market while the bitcoin price is searching for its low.
Auto-invest in bitcoin
First of all, let’s have a look at the options for automatic investments in bitcoin. To skip the routine of manual investments and to eliminate the risk of buying high, the cryptocurrency exchanges like Binance, Coinbase, etc. made a feature to auto-invest in some crypto a fixed amount automatically and of course periodically.
Nevertheless, their tools of auto investments are limited in features – periodicity and the main disadvantage is an absence of automatic withdrawals to cold storage, so-called Hardware wallets.
The BTC DCA tool can secure bitcoin investments in a period of several minutes, every hour, day, week, or month. Its automatic withdrawals can be set to be executed when they reach a specific BTC balance and this way secure to not leaving on a cryptocurrency exchange too many funds in a risk.
Bitcoin investments using BTC DCA
Having said the advantages of the BTC DCA tool, remain to say how to do it. The BTC DCA tool is connected to cryptocurrency exchanges, which means each user will need his/her own account there and will have to connect the account to the BTC DCA tool (a step-by-step guide makes it very simple – Binance, Coinmate).
Then the tool lets you create two types of jobs
- Order job – here you will fill in a simple form the amount of your investment, currency, and the periodicity
- Withdrawal job – here you will place your bitcoin wallet address and the limit of the balance to trigger the withdrawal of the cryptocurrency exchange to your personal wallet (this is for automatic withdrawals, but you can do a withdrawal anytime manually as well)
That’s it, the tool will be executing your jobs automatically and you can check its log in the “History” tab.