Not everyone knows this, but on a multiple of exchanges you can set up an automated bot to DCA into crypto. You can configure these yourself. I chose Binance (used to use Kucoin but there has been some FUD around Kucoin. Binance seems really stable though), its called Auto-Invest under Earn.
There’s some advantages to this:
\- You take the emotion out of DCAing. Buying on “run-ups” can feel wrong, or manually dcaing into a neverending downslope can ultimately force you to capitulate and quit dcaing. Using automation makes it easier to stick to your plan
\- If you buy once per month/week, you are really dependent on the day of your DCA. With automation you can DCA **daily** without effort, which ensures a better spread.
\- You don’t have to keep track; the bot does it for you and you can export it to Excel
\- Binance specifically automatically deposits your investments in earn, so you earn a (low) APR on your investmens as well. Great for longer time horizons
**What I do:**
I calculated the amount I wanted to invest, determined my investment horizon (2 years) and divided my investment by 730 (# of days). Set up two bots on Binance (75% ETH 25% BTC) that buy each day at 11:00 (before US wakes up and pumps prices). Loaded some BUSD onto Binance, and occassionaly when my funds threaten to dry up I send some stablecoins from my Metamask which is linked to my Ledger.
Pro tip: hold majority of funds in self-custody on wallet with ledger connected if you don’t trust exchanges. Send more funds to CEX when funds dry up.
Pro pro tip: you can also move the coins you invested in occassionaly off exchanges