Why would you start with DCA?

The idea behind DCA is simple: instead of investing everything at once, you spread out your investments over a longer period. This way, you don’t have to worry about finding the perfect time to buy, which is especially useful in a fluctuating market. By regularly investing a fixed amount, you end up paying the average price over your investment period. Plus, you don’t need in-depth knowledge of the market or prices, making this approach very user-friendly.

How does DCA work?

With BLOX, you can easily start with DCA. Follow these steps:

1. Go to your profile (top right in the app). Click on ‘Recurring buy.’
2. Choose the coin you want to buy periodically.
3. On the next page, you’ll find an overview of all the details you need to set up your recurring transfer in your banking app.
4. Log into your banking app or website and use the provided details to set up a recurring transfer.

Once we receive your transfer, your coins will be purchased automatically at the time you've set.

You can also start directly from the coin page of the coin you wish to buy periodically. In that case, go to ‘Buy’ and you’ll find the ‘Recurring’ option at the top right.

Dollar Cost Averaging (DCA)

Dollar Cost Averaging (DCA) is an investment strategy where you periodically invest a fixed amount, regardless of the current price of the coin.

The main feature of DCA is that you invest consistently, regardless of the current price of, say, Bitcoin. So whether the price is high or low, you always invest the same amount at the same scheduled times.

This approach helps reduce the risk of market timing. Instead of trying to find the perfect moment to buy crypto like Bitcoin, you invest smaller amounts regularly. This lessens the impact of market fluctuations, potentially resulting in an average purchase price that is less sensitive to short-term volatility over the long term.

Frequently asked questions about recurring buys