I DCA every month.
On every payday, I will transfer a fixed amount of fiat by local bank transfer to purchase crypto. The local bank transfer on-ramp incurs the lowest cost. Unfortunately, this can only be done through a particular exchange service in my country and that exchange has a very limited choice of tokens (let's call it ABC exchange!). It cannot be used as a trading account as a result.
I used to buy LTC with fiat and then send it over to another exchange that has more choice of tokens (and that will be Kucoin) for further deployment. In Kucoin, I have to change the newly purchased LTC back to USDT so that I can exchange for other tokens for DCA for the month.
That, to me, does not seem like a smooth way to transact. It does involve some unnecessary steps as I am also trying to transfer my stash of BTC from my Kucoin to my cold wallet eventually. Yes, my stash of BTC is in Kucoin and I have been wanting to move it to my cold wallet. But I need to do it in a big batch so that I can save on transaction fees.
With that intention in mind, I am doing something different this month as I am also trying to spend my fiat equivalent slowly to buy cheaper cryptos at a good time over the month to maximize the overall value (to in effect get a small pay rise).
Quite simply, what I did was to buy BTC with fresh fiat in the ABC exchange, and immediately sell the same amount of BTC in my Kucoin account to USDT. This way I have the fresh USDT in Kucoin for my DCA purchases at an opportune time later. I also save the trouble of sending LTC to my Kucoin account.
After a few more rounds of monthly funds injection, I can start sending my BTC from the ABC exchange to my cold wallet permanently.
I don't know others deal with DCA in practical terms. I would love to hear from you if you have other ideas of managing DCAs.
