Strong Crypto Investment Options For Safer Returns In 2021 And Beyond
DCA is The Long Game of Cryptocurrency management
The volatility of cryptocurrency coupled with the dream of becoming the next crypto millionaire has inspired many to become the holders of digital cash. The age-old adage that it takes money to make money applies here, and so does the idea that the higher the reward, the higher the risk. The famous Dogecoin millionaire cast $250,000 into the jar and won big; however, that’s not the typical outcome, especially in recent times. When you take some time and research it, the basis behind backing a joke meme fad with your life savings is a tough pill to swallow. So, as a safer alternative, we look toward Dollar Cost Average (DCA) for those who would instead take a slower, more strategic approach to earning a few extra coins long-term.
What is DCA?
DCA is a process where you purchase cryptocurrency or stocks in small increments over time, intending to save a stable lump of money over a longish period – think 12 months. The goal isn’t to make a large payment, expecting to profit from news strengthening the asset; it’s to save capital over time by investing in a strong asset, in this scenario, digital currency. The nature of DCA won’t make you wealthy, so if owning a Lamborgini in a week is your goal, DCA isn’t your best fitting strategy; however, it still might be a good idea to have as a small portion of your holdings.
Cryptocurrency DCA Options
Without further ado, the options are limited regarding cryptocurrency DCA; however, this list will get you started.
Robinhood
Robinhood doesn’t have a feature that allows recurring payments to cryptocurrency, unfortunately. However, there is no fee to purchasing crypto on their platform, which is a notable bonus. Robinhood does allow recurring purchases of certain types of stocks, so it’s worth mentioning. Robinhood’s generous referral program allows us both to revive free stock if you use this invite link.
Crypto.com
Crypto.com is an app-only offing so even as the name implies, there is no website that you can access to manage your coin. Ctypto.com sports the ability to connect the app to a credit card or directly to your bank account to fund your crypto wallet to perform recurring buys. One thing to note is that recurring payments with your credit card carry a fee of 2.99% with each transaction. The buys are limited to weekly, bi-weekly, and monthly, missing out on the daily option offered by the competition. Signing up with this method will get you $25 of CRO after you signup and stakes for a Ruby card.
Coinbase
And finally, the big dog, Coinbase. Coinbase lets you use your credit card or bank account to purchase many cryptocoins on daily, weekly, 1st and 15 of the month, and once a month schedules. Transactions get dicey with the complexity of the flat and variable fees. The US fee for USD 10 daily of BTC is USD 0.25 from a linked bank account. With Coinbase managing to have the lowest fees for recurring purchases and high level of trust, it’s the most reasonable option of holding coin. If you signup with this link, you $10 after you spend $100 on their platform.
Is DCA for Me?
DCA isn’t for everyone, especially if you want a quick return or struggle with the ups and downs of digital currency. When coin is going down and you are buying, you have an opportunity to profit when the price goes back up and beyond your starting point. The “A” in DCA means that you are taking the average, which should balance out your gains and losses. Accordingly, DCA is a long-term method of saving rather than trading for a quick profit.
