comparison of DCA offers


Solutions to make recurring purchases in cryptocurrencies are proliferating. Journal du Net helps you see things more clearly.

According to the data from the analytical site Messari.io, about 31 million out of 84 million bitcoin addresses are in the red on January 8, 2023 at a price of $16,956 (€15,778), or 37% of addresses. Furthermore, we can see that on December 17, 2017, the first time Bitcoin touched the $20,000 (€18,610) threshold, the network had approximately 60 million addresses, more or less the number is currently still positive in terms of investment.

With a record close to $69,000 (€64,000) reached in November 2021, the unlucky people who entered the market at that time should be patient to hopefully find these peaks and a balance in Fiat money credit. Another method is to be proactive and relax your investment, commonly called DCA for “dollar cost averaging”: a purchase at regular intervals regardless of the current price. A method derived from traditional finance that allows you to mitigate risk, invest without having a large sum and learn about investing. Many companies have created specific plans for this investment strategy in the Bitcoin and Bitcoin sector. cryptocurrencies but not all offer the same service.

Bitcoin only businesses

The first cryptocurrency, the largest capitalization, bitcoin embodies, despite the still very persistent volatility, the benchmark value of the crypto sector and for many people still the only legitimate investment in this market. It is for this reason that companies have specialized in DCA solutions dedicated only to bitcoin: in France, StackinSat and Bitstack; in Switzerland, Relay, Pocket Bitcoin and Bittr; in the United States, Swan.

The accumulation of satoshis (the smallest unit of a bitcoin, named after its creator Satoshi Nakamoto), and only satoshis, is therefore the proposition of these companies. They differ on the other hand in several characteristics: first of all, the commissions that are added to the mining fees for each transaction.

Regarding wallets, Pocket Bitcoin and Bittr never store users’ bitcoins while StackinSat, BitStack and Swan offer this option. Note that Relai even allows the creation of a self-hosted wallet while StackinSat is directly integrated into The book of the book Live, the wallet interface created by Ledger.

Among the technical developments of most interest to us, but aimed at insiders, Pocket Bitcoin, Bittr and Swan enable the use of xpub, a public key extended: once configured, this technical solution allows the user to receive his purchase without manual intervention at a new address for each transaction, an advantage in terms of confidentiality. StackinSat told us to think about adding it. At Bitstack, one of the interesting solutions is to offer a rounding up to the upper euro of daily expenses made on bank cards to convert it into bitcoins on a weekly basis.

A small disappointment, however, regarding Lightning Network, this Bitcoin-2 layer that provides faster, more discrete and less expensive transactions. At the time of writing, none of these platforms allow this network, but Ruben Waterman, the founder of Bittr, indicates a launch “probably by the end of March”. StackinSat makes it one “of its priorities”, BitStack also confirms to us “to have it in its roadmap”, Pocket Bitcoin is also working on it, and Relai mentions on its page technical support for the last quarter of 2023.

Note that unlike brokers, none of these dedicated DCA platforms charge withdrawal fees.

Regarding the identification procedures, Stackin Sat and BitStack apply it from the first euro, in accordance with the regulations. PSAN. Foreign competition does not have to fulfill the same obligations.

brokers

Coinhouse and Binance site capture © JDN

Most cryptocurrency exchange platforms have developed savings solutions through recurring purchases. Once again, these programs are distinguished above all by their fees: those of Coinbase and the mobile app Kraken, for example, have very expensive fees and therefore we would advise users of these platforms to favor a manual method instead of Coinbase Pro and Kraken Pro or … turn to the competition.

NASPs Binance, Coinhouse, Crypto.com and Paymium are interesting alternatives, but it should be noted that in the terms of use, Binance’s Auto-invest offer is accompanied, for example, by a clause such as the transfer of assets purchased on its platform. Earn, qualify for interest. A choice that may not be to everyone’s taste.

For all these platforms, however, it is not possible to perform automatic withdrawals of their assets: the user will have to do this manually if they want to place them in their self-hosted wallets.

Comptoir des cybermoines has the distinction of being a physical brand, based in Lyon, registered PSAN and offers monthly purchases of bitcoin and ether with a fixed commission of 9.90 euros for opening the account. then a 2.99% commission on subsequent purchases.

As for the offer of the Trading Republic, it does not allow the holding of digital assets: in other words, it is about investing in synthetic representations of these assets, paper securities, a solution that will be of more interest to a public without interest. in the notion of digital property so dear to Bitcoin and Web3 users.

Alternative solutions

Launched in 2022 and registered PSAN, Ambrosia does not yet offer an investment mitigation solution, although it is in its roadmap. At the moment, it is a consumer investment solution, free of charge, consisting only of stablecoin purchases. The platform takes care of the diversification of these investments in decentralized finance platforms and offers a return limited to 5.5% per year. Rewarded with additional interest generated. At the moment, the minimum amount to invest is 1000. Finally, while Ambrosia ensures that it constitutes a safety reserve funded by the interest generated, it does not guarantee the capital invested.

For wealthier investors, the Mon Livret C company offers a public consisting mainly of wealth management advisors and family offices a DCA offering in a portfolio of five cryptocurrencies, mainly invested in bitcoin and ether. The minimum initial investment is €1,000 and the minimum monthly payment is €200, with a quarterly management fee of 2.2%. Note that the balancing of this index portfolio is performed at the discretion of the company’s financiers and that there is no possible withdrawal of digital assets, only in fiduciary.

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