DCA into silver bars. The story behind smart intervals.

Jan Klosowski
Jan Klosowski ·

Not many people know that the idea of smart intervals we use to solve the minimum order size problem on exchanges originated before Deltabadger. Initially, I applied the same approach to DCA into physical silver. Here’s the story.

But first, what are smart intervals? Let’s say you want to DCA into Bitcoin at $10 every day, but you face a problem: on the exchange, there is a minimum order size of $10. What does Deltabadger do? It buys Bitcoin worth $10 every ten days. That way, on average, it’s $1/day.

Before I started working on Deltabadger, I had a crazy idea: I wanted to diversify by converting one of my Bitcoins into physical silver using DCA, or should I say, BCA — bitcoin-cost averaging. The idea was to spend 0.001 BTC daily so that I would convert 1 BTC into silver over almost three years.

How can you get the price of silver expressed in Bitcoin? You can use Trading View. Not many people know that you can easily display charts of formulas like SILVER/BTCUSD. Voila!

SILVER/BTCUSD

In reality, it’s even simpler because many bullion dealers accept Bitcoin nowadays.

Silver bars for Bitcoin!

However, there was a problem. I wanted to buy physical bars stored outside the EU VAT zone in a trusted vault, and a single bar today costs 0.032 BTC. Do you recognize the problem? Yes, my approach was the same:

I’d buy a bar for 0.032 BTC and wait 32 days for the next purchase. If in 32 days the price is 0.029 BTC, I’d wait 29 days for the third purchase, etc. That way, on average, I spend 0.001 BTC every day.

Did I succeed in spending the whole Bitcoin on silver that way? Partially. Not too long after, I started Deltabadger and eventually decided to put more capital into the company. But at least I had a good idea to incorporate into the service.

…and, of course, I still have my silver in the vault!

How many of you also buy precious metals? Gold, silver, platinum?

Disclaimer: This article is for informational purposes only and does not constitute financial advice. Investing involves risks, including the possible loss of principal. Always conduct your own research before making investment decisions.

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