Both Bitvavo and Finst have recently introduced the Dollar-Cost Averaging (DCA) feature, allowing cryptocurrency investors to automatically purchase digital assets and spread their investments over time.
This new functionality is a response to the volatility of the cryptocurrency market, where prices can fluctuate rapidly.
Bitvavo’s Recurring Buy Feature
Bitvavo introduced a feature that allows users to automatically buy cryptocurrencies from their account balance. The DCA method involves investors regularly investing a fixed amount, regardless of current market conditions. This creates an average purchase price over an extended period, which can be advantageous in a volatile market.
To use this feature in the Bitvavo app, navigate to your wallet and select ‘Periodic Purchases.’ Here, choose the desired cryptocurrency, determine the frequency (weekly, bi-weekly, or monthly), and set the amount you want to invest each time. Bitvavo then shows the expected annual investment amount.
The automatic purchase process utilizes the euro balance in the user’s account. Before each transaction, the user receives a notification, and three days before the next purchase, a check is made to ensure the balance is sufficient.
Finst’s Auto Invest for DCA
Finst introduced ‘Auto Invest,’ a similar feature enabling automatic and periodic investment in bitcoin or other cryptocurrencies. Auto Invest allows users to make regular purchases according to the DCA method.
This automation of the DCA process removes emotions from trading and helps investors consistently invest, regardless of market conditions. Auto Invest is available for investments starting from just 10 euros and offers users the choice between weekly, bi-weekly, or monthly purchases. Finst supports over 100 digital currencies on its platform.
A unique feature of Finst is that automatic purchases can be sent directly to the user’s own hardware wallet address, giving users more control over their cryptocurrencies without the need to keep them on an exchange.
Finst’s Auto-Invest feature also applies to Finst crypto bundles, allowing users to invest directly in curated portfolios of the top 10 or top 25 cryptocurrencies. Finst conducts monthly automatic reallocations to ensure users always own the top cryptocurrencies of that moment.
Regarding costs, Finst does not impose specific fees for the Auto Invest service, apart from the regular transaction fees of 0.15% per transaction. These new features from Bitvavo and Finst provide cryptocurrency investors in the Netherlands with more convenience and flexibility in building their digital portfolios.
Read more about buying cryptocurrency.
