Crypto savings plan
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.
What is a 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.
What are the benefits of investing with the crypto savings plan?
Invest automatically
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.
Carefree investing
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.
Spread your risk
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.
How does the crypto savings plan work at Amdax?
- Determine your strategy
Before you start, it is important to determine the amount you want to invest and over which period of time you will do so. In your personal Amdax environment, you can start a savings plan, where you can then quickly and easily set up a DCA strategy to your liking. - Deposit the desired investment amount
When the strategy is determined, you deposit the total amount in your Amdax vault. It is also possible to deposit for your periodic purchase instead of depositing the total amount at once. - Automatic purchases
After you have deposited the investment amount, your work is done. From then on, we ensure that the DCA savings plan is implemented periodically.
Available crypto assets voor DCA savings plan
Although our primary focus is on bitcoin, we also offer the DCA savings plan for a diverse range of other crypto assets.
Want to start a DCA savings plan?
Open an account or contact our account team.
Registered with The Dutch Central Bank
Product specifications
Available for:
Individuals
Businesses
Institutionals
Available from:
€50
Transaction fee
0.7% per transaction
Custody fee
0.6% per year
FAQ
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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.
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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.
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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.
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