Hello everyone,
I started a DCA plan through a platform, purchasing sats (around 50€ per week). I set up the weekly bank wire and they do the rest and send the Sats to my green wallet.
They get a very small fee for that (few cents). Everything is quite transparent and easy (that’s the point). I have no issue with them.
My problem is that when I check the transaction fee in my wallet, it is around 8-10USD for each transaction…that’s insanely high (roughly 20% of the transaction) regarding the amount purchased.
On this basis, dollar cost averaging with small amounts (less than 1000€) is not financially clever, isn’t?
Am I doing something wrong here?
Thanks for your insights
M
Can you make less transfers, but send more. So maybe monthly instead of weekly? What platform are you using if you don’t mind? Kind of going through something similar with fees.
Thanks for the answer samwise👍
The platform is called Stackinsat.
Yea, I can send more on a monthly basis, but the whole idea of DCA is to multiply the purchases so you benefit from the volatility…
With crypto, I thought weekly dca was fine…but the transaction fees taught me otherwise😂…
Hi @blindmax,
As is often the case, your idea is sound, but you only now have the full information required and are now thinking “is there a better way to achieve my objectives”?
I took a look at stackinsat and see they have recently formed a relationship with a French language business presumably to extend the reach of their business.
I do not have any particular affiliation, or believe my choices along the way were particularly “savings-oriented”, but I found a UK company on advice from my brother called Coinburp that I thought may satisfy your objectives. Of course, I am a Brit, so I tranacted with them to avoid direct GBP/USD exchange fees but then needed to get used to looking at prices in GBP when my mind works (in crypto) in USD. That company was called Coinburp, and my account is still open, though somewhat inactive.
I am not sure it matters a great deal whether you commit every week or every month. I assume your timescale is of the order of 5 years or longer for a DCA strategy. For coinburp, there was a buying fee of around 3% of monies invested, and I found that par for the course. Once you have “onramped” from fiat to crypto, fees for exchange can be much smaller in particular if you are moving a coin that is NOT on the bitcoin or ethereum protocols. I recently moved 10,000 ONE tokens from a crypto.com wallet to another wallet at a cost of $0.01! About the cheapest onramp I have found is crypto.com (GBP to GBP) and for cryptos of highest liquidity (BTC, ETH) the charges vary from 1.5% to 3.0%.
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Stay from ETH, maybe try SOL or AVAX.
Thanks a lot for your insight Mondeoman.
I will definitely change my plan to monthly.
All the best and merry Xmas!
Max