Automated Dollar-Cost Averaging into Bitcoin is here. Meet Deltabadger.

Automated Dollar-Cost Averaging into Bitcoin is here. Meet Deltabadger.

I’ve built a tool for friends and family, and you need it too.

I cannot count the number of times someone asked me if it is the right moment to buy Bitcoin. I leave a discussion about all ifs and whys for another occasion. The demand is real, and as somebody who benefited a lot from being around in the “Bitcoin bubble”, I never feel honest replying with the safe but lazy “Don’t.”

For the majority of people, the correct answer is always the same: dollar-cost averaging. Buy a small amount for a fixed dollar value on a regular basis, so you buy a bit more when the price is lower and less when the price is higher. Over time you get a fair average price. It sounds right and easy, but in practice, only a few people can follow this advice. We love to make impulsive decisions. Following an organized routine demands much more effort and, let’s be honest, it’s kind of annoying.

Not anymore.

Deltabadger is a friendly dollar-cost averaging bot that works with cryptocurrency exchanges. It automates the process in a set-and-forget manner. At the moment, it supports Kraken and Bitbay (with Polish users in mind). It’s easy to set up, sends notifications when something goes wrong. It also offers a simple chart and CSV export fo those who enjoy looking at how their investment performs over time, because who doesn’t?

It’s not the end of the good news: the bot is free up to $500/year. By the way, if you feel like $19/year for the unlimited version is too much, don’t invest more then $500 anyway. You’re welcome.

At this point, I must confess, I was looking for such a tool every year since I’ve got into Bitcoin. I was practicing DCA in various forms myself for most of that time, but I have to admit, I could do even better having such a tool. The need for it was even more urgent when friends and family started approaching me with questions about the topic. I am aware that the majority of people do not have the time and energy necessary to follow a strict investing routine. (Let’s not call it a lack of discipline because we are all very disciplined, right?) However, now they don’t have to. Fortunately, DCA doesn’t get any easier than with the help of Deltabadger.

For people new to the idea of dollar-cost averaging, it’s essential to understand what this approach is and what it is not. DCA is not a strategy to maximize profit. When the price is falling, you will be losing money anyway.

However, that’s not the big problem of investing. People are losing money even when the investment is going in the desired direction. The biggest issue is emotions. We buy when we feel excited (often at the worst possible moment), and sell when we are scared (usually not at the right time as well). DCA has such a great track of success because it helps to manage both emotions and the risk of bad timing at the same time.

Still not sure? This online simulator helps you to understand how DCA works in practice and offers some more explanation.

You need to have an exchange account with funds in it. A couple of things:

1. Every cryptocurrency exchange offers 2FA (second-factor authentication), and it’s absolutely unacceptable not to use it. Also, don’t use SMS as your second-factor — it’s not safe enough. Use Google Authenticator, Authy, or a physical token like Yubikey. Set it up before transferring your funds to the exchange. It’s critical.
2. Don’t keep your funds at the exchange for too long. At some point, you have to transfer your coins from the exchange to a physical hardware wallet. Trezor or Ledger are both popular options. However, using an exchange has many benefits. First of all: you get a much better price in comparison to sellers sending coins directly to your wallet. Second of all, you can automate your purchases. That said, Kraken is a trustworthy exchange that has never been hacked, so don’t be too scared; just do a withdraw from time to time. There is a small withdrawal fee, so it does make sense to consider it planning a reasonable schedule. Oh, and the withdraw bot is coming as well.
3. Deltabadger operates with your account using the exchange API. It walks you through the setup process, so don’t worry if you don’t understand what “API” is. Is it safe? Yes, the permissions you give to the app are limited, e.g., it cannot move your funds, etc.

When you have a verified exchange account with funds ready to use, log in to Deltabadger, and set the bot in a few minutes.

The website is live and fully functional. However, I am already working on a few more features:

1. A referral program. I’ve been already asked about it. The truth is, it was in the original scope but I decided to not postpone the launch any longer and add as soon as possible after it.
2. I plan to add Ethereum, Monero, and Litecoin. I am not a big believer in dollar-cost averaging into altcoins, but I know there is a demand for that. A small “curated” list of coins is what I feel comfortable with at the moment. However, I consider removing them from the free plan since it’s not something I would encourage people to do myself.
3. Optional limit orders. Currently, all orders are performed as market orders. A limit order usually offers a smaller transaction fee and possibly a lower price on average in general. On the flip side, it does not guarantee that every order will get filled. I am pretty sure it does make a lot of sense to offer this as an option, but it requires some additional R&D.
4. I already mentioned the withdrawal bot.

I treat Deltabadger as a platform and DCA bot as its first product. I have many ideas. Stay in touch. That’s it for now. Any feedback, bug reports, feature ideas, and suggestions will be appreciated.

Published at Fri, 10 Jan 2020 04:55:39 +0000

{flickr|100|campaign}