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Best Crypto Exchange for Dollar Cost Averaging In 2022

Dollar cost averaging (DCA) is the ability to invest small amounts of wealth into an asset or security (in this case, cryptocurrencies) without having to invest all at once. This is one of the single best investment strategies for hedging or curbing risk. This is because when investing over the course of an extended period, the natural dips and rips in the market are less likely to impact the overall investing strategy.

To begin dollar-cost averaging or DCA in the crypto market, you’re going to need a crypto exchange—not all crypto exchanges are equal. Depending on your country of residence, the taker and maker fees will differ, as well as the sign-up requirements (proof of residence and national ID). Staking and other investment strategies also vary, with exchanges like Coinbase and KuCoin being amongst some of the most versatile exchanges with the most investment tools.

Whether you are new to the crypto market or a seasoned investor, examining the difference between some of the industry’s most popular exchanges will inevitably lead to a better, more well-balanced portfolio. Pay close attention to the fees that each exchange offers. This is one of the most important factors when considering the best exchange for dollar-cost averaging. And creating a portfolio that will last the marathon, not just the sprint.


Benefits to Dollar-Cost Averaging

It is well known in the trading world that often the most successful investors are those who invest in the long term. Why is that? This occurs because long-term investors use an amalgamation between dollar-cost averaging and regular deposits. This, paired with patience and a calm investing mind, leads to higher returns than the frantic investor attempting to buy low and sell high.

But what are the nitty gritty benefits of dollar-cost averaging?

  • Reduction of risk: Market downturns occur and they occur regularly in cycles. However, with a DCA investment strategy, the investor is able to curb their initial risk. In fact, during a downturn, investors are able to program buy orders during a correction, which can level their perceived losses.
  • Emotional connection: As cryptocurrencies continue to surge and rise in popularity, it is easy to be overtaken my emotion. Especially when news and media outlets regularly publish the most successful of crypto stories—which can lead to the infamous “FOMO” or fear of missing out. With a proper DCA strategy, this emotional attachment lifts and investors can rely on time-proven techniques instead of emotion-buying.
  • Saving with intention: Dollar-cost averaging combined with regular deposits into your investment account will lead to a disciplined form of saving for the future. This discipline holds the possibility of delivering the financial freedom that so many investors seek. And can be the catalyst that leads to a life less encumbered by numbers and more filled with experiences.

5 Best Exchanges to Dollar Cost Average Crypto
1. Binance US


The world’s largest crypto exchange by trading volume and easily one of the best exchanges for dollar-cost averaging. One of the primary benefits that Binance in the United States offers is its low taker and maker fees. (These are the fees that are applied when an investor attempts to trade in an exchange.) With maker/taker fees as low as 0.1%, you can expect Binance US to be amongst the best choices for the often-austere dollar-cost averaging strategy.

Binance also offers additional savings in the form of their native token, BNB. Holders of BNB are able to use them to purchase and trade other coins. Another benefit of Binance is their ease of use purchasing coins using USD, ultimately saving the retail investor a good amount in conversion fees. You can get started on Binance US here.

Pros

  • Incredibly affordable for trading and conversion fees
  • In-depth technical analysis reports, charts, and graphs.
  • Fast trading times with no delays

 Cons

  • Not available in all 50 states in the US

2. Uphold

Best Crypto Exchange for Dollar Cost Averaging


A unique approach to trading and crypto exchanges, Uphold is known for its “anything-to-anything” approach. Meaning, for dollar-cost-averaging investors, this might just be one of the better exchanges to use. Uphold boasts a 0% trading commission and the ability to purchase cryptocurrencies directly using your bank account or debit/credit card.

Uphold also offers a simple form of trading—for example, if an investor wants to swap Bitcoin for Tesla shares, there exists only one step. In a similar fashion, if an investor wants to swap Facebook shares for Tesla shares, there is only one step. You can get started on Uphold here.

Pros

  • All-in-one pricing scheme, means there are no extra fees
  • No minimum investment amounts

Cons

  • Very little educational materials and research tools for new investors

3. Crypto.com

Best Crypto Exchange for Dollar Cost Averaging


One of the most reputable and well-protected exchanges in the crypto market, Crypto.com ranks as one of the top exchanges for their cybersecurity infrastructure, their multiple layers of security, and overall safety of use.

In the Cybersecurity Ranking and Certification platform (a list composed of the top 100 crypto exchanges based on their level of security), Crypto.com ranks as their top exchange when it comes to protecting the interests and assets of its investors. You can get started on Crypto.com here.

Pros

  • Best cybersecurity exchange on the market
  • Low fees when completing cash transfers
  • And the largest selection of crypto assets is available right now.

Cons

  • High fees for credit and debit card transactions

4. Coinbase

Best Crypto Exchange for Dollar Cost Averaging


Newcomers into the crypto space will find Coinbase the easiest of exchanges to use. Ranking as one of the most user-friendly of crypto exchanges, Coinbase offers a slew of benefits for the crypto novice. From education material and ways to earn crypto by learning—to an expansive list of coins to trade and purchase.

Coinbase is also one of the most secure exchanges to use. All Coinbase users must enable two-step authentication, upload national ID, and attach a phone number. In addition, Coinbase goes a step further in ensuring their customers are safe by insuring custodial accounts up to $250,000. You can get started on Coinbase here.

Pros

  • Easy-to-use, user-friendly, and an overall simply onboarding process
  •  Offers crypto-education materials
  • Extensive selection of cryptocurrencies to choose from.

Cons

  • High fees, and an even more complex fee structure.

5. Robinhood

Best Crypto Exchange for Dollar Cost Averaging


Robinhood shines in its ability to ease new investors into trading in both the stock and crypto markets. Utilizing a simple user interface, education materials, and a robust customer service team—Robinhood remains one of the best and most user-friendly of exchanges for the budding investor.

They also offer no account minimums and fee-free trading, which will ultimately benefit the dollar-cost average investor who is attempting to grow their principal by as much as possible without it being slaughtered by often-high trading fees. You can get started on Robinhood here.

Pros

  • Very little to no commissions and a minimum account balance
  • Incredibly user-friendly and easy to use for the new crypto investor
  • Regulated and observed by the Securities and Exchange Commission (SEC).

Cons

  • They do not offer any forex or mutual funds trading

Final Thoughts

If you were looking for some of the best crypto exchanges for dollar cost averaging in 2022 we hope this helps you out. As you begin on your journey to make the most out of your dollar, rest-well my dear reader for better things are on the horizon. With a plethora of easy-to-use exhanges and an ever-expanding crypto market, there will only be more options as the months pass.

And remember that the goal of dollar-cost averaging is to make deposits into your investments account as not only a way to hedge your risk during market downturns but to build up your principal.

So that one day, when you look back, your nest egg will have become something truly spectacular. Keep putting those eggs in and watch as your financial dreams take flight from the edge of your nest one day.


 

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