Dollar Cost Averaging (DCA) is an investment strategy that involves dividing the total investment amount and purchasing a target asset at regular intervals, regardless of the asset's price. Implementing DCA on both centralized exchanges (CEX) and decentralized exchanges (DEX) differs in terms of setup and custody of funds.

On a CEX like Binance, a Recurring Buy feature allows users to buy a fixed amount of cryptocurrency over a set interval of time. Users can schedule their purchases using their VISA or MasterCard. The process involves selecting the debit/credit card as the payment method, choosing the desired cryptocurrency, enabling the Recurring Buy feature, selecting the fiat currency, setting up the frequency of purchases, and confirming the payment method.

However, it's important to note that the custody of funds lies with the exchange when using a CEX for DCA. This means that users are relying on the security measures implemented by the exchange to protect their funds. There is still a degree of vulnerability to security breaches or hacks.

On the other hand, DEXs like DZap offer a different approach to DCA. When using a DEX, the process involves connecting your wallet to the platform, choosing the desired blockchain network, selecting the tokens for the DCA transaction (from and to), setting the frequency and number of times the DCA will run, and confirming the transaction. The key advantage of using a DEX for DCA is that the custody of funds remains in the hands of the user. This means that users have full control and ownership of their assets throughout the trading process, reducing the risk of security vulnerabilities associated with centralized exchanges.

In conclusion, setting up DCA on a CEX involves utilizing the exchange's features and payment options, while a DEX typically requires connecting a wallet and executing transactions directly on the blockchain. The choice between CEX and DEX for DCA depends on individual preferences, with CEXs offering convenience and user-friendly interfaces, and DEXs providing greater control and security through user custody of funds.