Automatically DCA into Bitcoin
- What is Bittr?
- Country Restrictions?
- What do I need?
- My Experience with Bittr
- What is DCA?
- My Strategy
The Content here is for Informational & Educational purposes only. Everything written here is my own View. This is No Financial Advice. Always do your own research.
2. What is Bittr ? (and why it is awesome)
Simple, Bittr is a Service that allows you to invest in Bitcoin without Emotions, completely automated. The only effort you have, is to set up the Service, Ledger and create a recurring bank transfer. Bittr will buy Bitcoin for you at the best possible Price, as soon as your transfer arrives.
Best of it: Bittr doesn’t keep your Sats on an Exchange, but sends them to your Ledger, or specified Wallet, almost immediately after purchase, with the lowest fees.
Speaking of Fees: Bittr offers their Service almost Free, they charge 1,5% on your Deposit to run their Service. — which is fine to me!
Right now we are focussing on setting up the most simplistic way of buying bitcoin, right through your own online banking environment, always managing your own wallet (private keys).
2. Country Restrictions?
Unfortunately, not every Country is eligible to use Bittr. Below are the Countries who can use their Service.
3. What do I need?
A Bank Account, a Hardware/Software Wallet and a working Computer for the Setup. That’s all.
I do suggest using one of the following Wallets, since Bittr itself provides good Tutorials on how to set up everything on their Website.
I did use a Ledger Nano X, setting this up, went really smooth.
4. My experience with Bittr!
In 2019, I was searching for stressless and comfortable Ways to DCA into Bitcoin. At the beginning of 2020 I came across Bittr and at the end of January I did register on there.
The Tutorials on Bittr are straightforward, I no Problems in following them. I would say, even for people who do have fewer Skills on a Computer, it is achievable to set everything up.
Apparently, my first deposit was done on the 3rd of February 2020.
Bittr always do send notifications as soon as they bought Bitcoin for you, with a nice summary. Once you get this notification, your Bitcoins are already on its way to your Wallet.
I am pretty happy I came across Bittr. I was constantly looking for something like this, since by the Time I got tired of doing the DCA Strategy all by myself on regular exchanges like Coinbase, Binance etc. After you have everything setup, you don’t have to do nothing at all, just make sure that you did setup everything accordingly and don’t forget to create a reoccurring bank transfer.
5. What is DCA?
Dollar Cost Averaging (DCA) is a well-known investment Strategy used by numerous Investors
An investor sets a savings rate on an interval he defines to invest in an asset he prefers. In doing so, he bypasses the volatility of the asset and the emotions associated with it. The investor buys regardless of the price, with the aim of accumulating the asset, not having to time the market and at the same time getting a better average price.
It is Important to understand that Dollar Cost Averaging is not a form of “buying the Dip”. It is a Saving Strategy with a long time horizon to be set.
However, it is to say, that Dollar Cost Averaging only works with an Asset that rises in Value, over the Time Horizon set by you.
Here’s a little example. Let us assume we buy Bitcoin on a Weekly basis, over the course of 15 Weeks. Spending $500 a Week, resulting in a total of $7'500.00.
- Week 1 — Buy @ $10'000.00 = 0.05 BTC
- Week 2 — Buy @ $7'000.00 = 0.07 BTC
- Week 3 — Buy @ $3'000.00 = 0.16 BTC
- Week 4 — Buy @ $5'000.00 = 0.10 BTC
- Week 5 — Buy @ $3'000.00 = 0.16 BTC
- Week 6 — Buy @ $2'000.00= 0.25 BTC
- Week 7 — Buy @ $5'000.00 = 0.10 BTC
- Week 8 — Buy @ $8'000.00 = 0.06 BTC
- Week 9 — Buy @ $3'000.00 = 0.16 BTC
- Week 10 — Buy @ $3'000.00 = 0.16 BTC
- Week 11 — Buy @ $1'000.00 = 0.50 BTC
- Week 12 — Buy @ $5'000.00 = 0.10 BTC
- Week 13 — Buy @ $10'000.00 = 0.05 BTC
- Week 14 — Buy @ $15'000.00 = 0.03 BTC
- Week 15 — Buy @ $9'000.00 = 0.05 BTC
In total, this gives us 2.00 Bitcoin with an average buy price of $5'933.33. As stated above, the total invested is $7'500.00, if we assume now that the Price of Bitcoin is at $9'000.00, which is the last Price seen above in the Chart, you would have made a Profit of $10'500.00. (2 BTC x $9'000.00 = $18'000.00 | $18'000.00−$7'500.00 = $10'500.00) — please understand that this is simplification.
Would you have bought at $10'000.00 you would get 0.75 Bitcoin, at $7'000.00 it would be 1.07 BTC and at $3'000.00 you would get 2.5 BTC.
Of Course, it would be better to buy always Low, but hitting the Low, is like playing Roulette, not saying that there aren’t People that can achieve that, but most can’t. So taking out the Emotions along with a decent time horizon will generate better and more Profit in the end.
Again: DCA does not mean to buy the DIP — it is a simple investing Strategy for saving Money. As stated Above.
5. My Strategy
Following is my Dollar Cost Averaging Strategy, as already stated this is my Strategy, and it certainly does not fit to everyone. I am not going to tell how much Money I do used to accumulate, for example purposes we will assume its $500.00 a Month.
I only DCA about 75% directly into Bitcoin, through Bittr, the remaining 25% are going into Stable Coins, manually using SwissBorg.
75% = $375.00 | 25% = $125.00
I do Dollar Cost Average every Week, so 4 times a Month. I choose to DCA on two specific Weekdays, namely on Monday’s and Friday’s. With that, I try to catch the lowest Price possible — might not be the best Strategy though, but it works for me.
The Remaining 25% which I put in Stable Coins, are simply there to build up a decent side Bag for bigger Dips.