Key Points / BCA
BCA means bitcoin cost averaging
BCA is a profit-taking method, similar to scaling out
If you BCA, you gradually exit the BTC market at regular intervals
Tools for BCA: #independent-reserve
The BCA meaning in crypto trading or investing is bitcoin cost averaging.
What is the goal of BCA?
BCA is a technique of profit-taking. With BCA, you are selling the same amount of bitcoin at regular time intervals to decrease your exposure and take profits.
If you bitcoin cost average, you are exiting the bitcoin market step by step. Taking profits gradually like this protects you from volatility and also from any human error that might come from trying to speculate on future price action.
You can BCA into your local fiat currency or into any altcoin that you think is a better investment than bitcoin.
How do you bitcoin-cost average in crypto markets?
In regular intervals (ie weekly), you sell a fixed amount of your bitcoin currency for as much of the asset of your choice as that bitcoin is good for.
Automated bitcoin selling
Bitcoin cost averaging is easy to automate and schedule. There are a few exchanges that can time your orders, but for BCA into fiat you should choose an exchange that is regulated and has stable banking connections - such as Independent Reserve.
This is how you take gradual profits on Independent Reserve:
- Deposit bitcoin into your verified account’s wallet (verification is easy, most nationalities accepted)
- Go to AutoTrader tab in your Account page.
- Select the fiat currency you want to BCA into: USD, AUD, NZD or SGD
- Choose the frequency of your BCA: Daily, weekly, fortnightly, monthly, or last day of each month.
- Select your BCA amount: It can be a fixed fiat value, such as 0.001. It can also be a percentage of your account balance at each time the AutoSchedule strategy executes.
Friendly note: Coin control
As a note, you might need to use coin control if you are selling larger amounts of bitcoin. Coin control is a way to split coins in a single address based on when and where they were paid. That way you can sell, let’s say, only coins that you provably bought at Bitstamp, and ignore coins that you got from a casino.
You can access coin control features in wallets like Electrum or Ledger.
Best Tools for Bitcoin Cost Averaging
- Trading Platform: Independent Reserve - Aussie exchange with AutoSchedule feature
- Technical Analysis: None at all!
- Charting App: None at all!
An indepth look at BCA is here.