The cryptocurrency market experiences many price fluctuations and is difficult to time. With the crypto savings plan, you spread your investment amount over a certain period and periodically purchase for the same amount. This is also known as the Dollar Cost Averaging (DCA) strategy.
In a DCA (Dollar Cost Averaging) strategy, you invest a fixed amount of money at regular intervals, regardless of the price or developments in the market. The purchase moments often vary from (bi)weekly to monthly or annually. By buying periodically, you sometimes buy during a period when the price is rising, and sometimes during a declining trend. As a result, you buy at an average price over the long term and spread your risk.
Via your personal Amdax environment, you start a DCA strategy quickly and easily. We automatically execute the purchase for you. This way, you can invest in crypto assets without any worries.
With dollar cost averaging, price movements or market developments do not affect your strategy. The advantage is that you reduce the chance of making impulsive decisions and leave behind the stress of timing the market.
With a DCA strategy, you invest at an average price over a longer investment period. As such, you can spread out the risk and avoid paying too much at any particular moment.
Although our primary focus is on bitcoin, we also offer the DCA savings plan for a diverse range of other crypto assets.
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When you invest according to the DCA strategy, you don't have to actively engage with the market or your strategy. You automate your purchases and always do so at the same time. This reduces the chance of impulsive buying or selling and avoids stress, which often arises when timing the market.
Once you have opened an account, simply set up a customised DCA savings plan in your personal Amdax environment. Enter the investment amount, desired crypto assets, and period, and deposit the amount into your account. We will then make the purchases automatically periodically.
A DCA strategy protects against losses, but in an uptrend, it can also reduce returns compared to a one-off purchase made at the right time. However, without far-reaching knowledge, it is difficult to estimate the right buying moment. This makes a DCA strategy suitable for (novice) investors who have limited knowledge about the crypto domain.