Looking to Dollar-cost average (DCA) Bitcoin & Altcoins in Canada? DCA is a time-tested strategy and you can apply it to cryptocurrencies as well. While DCA can be done manually, it's much better if you automate it. To do that, you can use DCA bots (aka recurring purchases), which is what we'll talk about today.
This post will show you the best places to DCA cheaply and automatically, so you can get the most bang for your buck and set yourself up for the long haul. Let's jump in.
How Do DCA Bots Work?
DCA Bots (aka recurring purchases) let you buy/sell crypto automatically over a specified period of time. You can set up the amount, the day, the time, and the interval (daily, weekly, monthly) you'd like to make a purchase. Some exchanges will automatically withdraw the money from your bank account, while others require you to pre-fund your account. However, the purchases themselves are automatic.
Investors use DCA bots because it's a set-and-forget approach. You will be more likely to follow your strategy if you automate and remove your emotions.
Best DCA Bots in Canada
It's important to pick the right crypto exchange because some have high fees or spreads, which can eat away at your profits. Here at RankFi, we've tested over 20 crypto exchanges. These are the three cheapest and best platforms for recurring purchases in Canada. Select the one that is most suitable for you.
- NDAX - Lowest Fees & Spreads
- Newton - Best Overall Canadian Exchange
- VirgoCX - Another Low-Cost Choice
- Shakepay - The Easiest Choice
Unfortunately, recurring bank transfers are unavailable on Canadian platforms, so you must pre-fund your accounts for the purchases to go through. But there is a workaround which I explain at the bottom of this post to set up automatic bank transfers as well.
With NDAX, you can create recurring purchases for 35 cryptocurrencies. For as little as $10 per purchase, you can set up daily, weekly, or monthly payments. If you want, you can even set up multiple orders for different coins.
NDAX is a top choice because it's one of the cheapest exchanges in Canada. On the same day and time, we tested 18 platforms, and NDAX had the lowest total purchase fee, including the 0.20% trading fee. CAD deposits are also free via e-transfer or wire.
Among other things, NDAX offers beginner trading, advanced trading, low fees, and more. You might end up using it more than just for recurring purchases.
Newton recently introduced recurring buys which lets Canadians DCA into 70+ coins on the platform. You can customize the amount, starting date, and frequency and set up recurring orders for as many coins as you wish.
We selected Newton as the best overall exchange because it has low-fees (hidden fees included), free deposit and withdrawals, and $5 off crypto transfer fees. Plus, it has the best user-interface in our opinion.
VirgoCX offers about 69 coins on the platform, with 12 of them available for recurring orders. It's likely they will add more coins over time, since this feature just launched in July 2022.
You can create recurring purchases for as little as $1. There are four timeframes to choose from: daily, weekly, 1st and 15th, and monthly. In addition, if you need to skip a purchase, you can do so in one click without canceling the order altogether.
In terms of fees, VirgoCX was right there with NDAX. In terms of total BTC purchase fee, it was 2nd cheapest out of 18 platforms (it had a slightly higher spread than NDAX). CAD deposits and withdrawals are free, and there are no trading fees. One of VirgoCX's advantages over NDAX is free cryptocurrency withdrawals on lots of coins.
I found this video showing how VirgoCX works:
Shakepay is a popular platform used by over 1 million Canadians. With it, you can purchase Bitcoin and Ethereum, earn Bitcoin cash back, earn free Bitcoin, and more.
With the recurring buy feature, you can buy Bitcoin or Ethereum every day, every week, every two weeks, or every month. And you can place orders for as little as $1. With Shakepay, you can deposit and withdraw CAD and crypto for free.
One of the main reasons to pick Shakepay is because it's the easiest to use and doesn't require any expertise. Plus, there are free ways to earn Bitcoin through shaking your phone and a Visa card.
On the downside, it only has 2 coins. And while the spread was higher than NDAX and VirgoCX, the prices are still fair. Shakepay had the 4th cheapest total BTC purchase fee out of 18 platforms.
In the list above, we only listed the best DCA bots in Canada based on their fees, coin selection, and ease of use. Other crypto exchanges also offer recurring purchases, but did not make the list because of high fees or other disadvantages. If you want to check them out, those platforms are listed here:
How to Set Up Automatic Bank Transfers?
The DCA Bots listed require Canadian dollars already in your account. There are no automatic bank transfers yet unless you use Beaver Bitcoin. The good news is that there is a workaround if you want to completely automate this process. You can simply set up a recurring Interac e-Transfer from your bank account. Here is what it looks like on RBC:
- Login to your bank's website
- Setup an Interac E-Transfer and fill out the details for your exchange
- Click "More Than Once"
- Set up how often and for how long you'd like to do the e-Transfer
- Click submit
This will look slightly different for each bank, but the overall process should be the same.
Dollar-cost averaging is a great way to invest for the long-term, as it helps smooth out price fluctuations. And now, you know the best choices in Canada with the lowest fees so you can pick the one that is right for you.