The crypto market has many price movements and is difficult to time. With the crypto savings plan, you spread your investment amount over a certain period and buy for the same amount periodically. This is also known as the Dollar Cost Averaging (DCA) strategy.
What is the Dollar Cost Averaging (DCA) strategy?
With the savings plan, as an investor, you invest according to the Dollar Cost Averaging (DCA) strategy. You invest an equal amount of money at fixed times, regardless of the price or developments in the market. The buying moments vary from (two) weekly, to monthly or annually. By spreading your investment, you buy more when the price is low and less when it is high. This way, you spread the risk of price movements on your portfolio.
Why invest with the crypto savings plan?
Easy
Through your personal Amdax environment you start the savings plan quickly and easily. We carry out the purchase for you automatically. This way, you can invest in crypto assets without having to worry.
Carefree investing
With the savings plan, price movements or market developments do not affect your strategy. The advantage of this is that you reduce the chance of making impulsive decisions and also leave behind the stress of timing the market.
Spread your risk
By spreading your purchases, you invest at an average price over a longer investment period. This prevents you from buying at too high a price at one particular point.
How does the crypto savings plan at Amdax work?
Determine your strategy
Before you start, it is important to determine the amount you want to invest and over which period you will do so. In your personal Amdax environment, you can start a savings plan, where you then quickly and easily set up a DCA strategy to your liking.
Deposit the desired investment amount
When the strategy is determined, you deposit the total amount in your Amdax safe. It is also possible to deposit before your periodic purchase instead of depositing the total amount at once. You can easily deposit via iDeal in the Amdax app or web environment.
Automatic purchases
After you have deposited the investment amount, your work is done. From then on, we ensure that the savings plan is executed periodically.
Available crypto assets
Although our primary focus is bitcoin, we also offer a diverse number of other crypto assets for the savings plan.
Product specifications
Available for: Private, corporate and institutional
Available from: €50,-**
Transaction fee 0,7%
Storage fee 0.6% per year
*For a business or institutional account, monthly subscription fees will also be charged. **Exclusive for clients
Frequently asked questions
Why invest according to the Dollar Cost Averaging (DCA) strategy?
When you invest according to the DCA strategy, you don't have to actively engage with the market or your strategy. You automate your purchases and always execute them at the same time. This reduces the chance of impulsive buying or selling, and avoids the stress that often comes with timing the market.
What is the risk of a DCA strategy?
A DCA strategy protects against large losses, but in an uptrend it can also reduce returns compared to a one-off purchase made at the right time. However, without far-reaching knowledge, it is difficult to estimate the right buying moment. This makes a DCA strategy suitable for (novice) investors who have limited knowledge about the crypto domain.
Can I stop or change my DCA savings plan at any time?
Yes, you can stop or amend your DCA savings plan at any time. However, doing so may reduce the positive effect of a dollar-cost-averaging strategy on your returns. If you want to start a DCA savings plan for other crypto assets, it is possible to open a new savings plan in addition to your existing savings plan(s).