Irrespective of the market condition, novices and even experienced crypto traders find it hard to identify when exactly is the right time to enter the market. Let alone technical traders; crypto-investors find it really confusing to master the timings of their investment in such volatile environments.
There is a high risk of losing money in a matter of minutes when you enter the market right before a massive downtrend or exit just before buyers start to take over the market.
So how to solve this conundrum? The best way is to follow the good old way of disciplined investing — Dollar Cost Average (DCA).
It is time to explore the DCA KuCoin trading bot, its functionalities, and the step-by-step process to get started with it. If you are a novice crypto trader or investor, check out this guide till the end. Let's get started!
DCA (Dollar-Cost Averaging) is one of the simplest trading strategies. According to the data, 90% of traders will get better returns if they use DCA instead of manually investing their funds.
DCA Method Explained
DCA is a strategy that allows the investor to buy the same dollar amount of investment at regular intervals. The purchases occur regularly at specified timeframes, regardless of the asset’s price at that moment.
In the DCA method, you periodically invest in cryptos with a fixed amount instead of trying to time the market accurately. In the DCA investing strategy, the importance is given to the amount of time spent in the market over forecasting and timing the market.