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Why Dollar-Cost Averaging is good for low-budget traders?


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Investing in crypto could be challenging especially the Fear of Missing out Lambo. This mostly affect traders trading strategy and ideology. Predicting the right time to buy is always cumbersome and that is why many analyst advise DCA because it curtails FOMO and gives you a long-term crypto trading mentality.

In crypto Dollar Cost Averaging involves investing the same amount of money in a target token at regular intervals over a certain period of time, regardless of price. This will help to control volatility on your portfolios and minimize FOMO For example when you decide to invest $100 on a token and invest $10 daily or weekly or monthly till you fulfilled you $100 target investment on the token irrespective of the price of the token. This strategy helps a crypto trader to build his portfolio over the long term thereby he/she is not bothered by short-term volatility in the broader markets.

This strategy mostly favours low-budget traders in building a strong portfolio but the problem most normally encounter is exchange minimum trading amount. One analyst advised on how to mitigate this was to accumulate on exchange that has lower trading fees and later send to where you desire to hold. He also noted that some of this exchanges are good in listing good projects for you to be among the early birds.
Do you think DCA is the best method to accumulate token and which exchange offers the lowest tradeable balance and trading fees?

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2 minutes ago, BashJasper said:

I love DCA as an investor but prefers copy-trading as a trader. My philosophy has been 40% investment and 60% trading so, I'm a frequent patron of Cexes with reputation in copy-trading.

Talking about Copy trading, I do use Bitget because the exchange has the most user-friendly copy trading interface that makes available the needed features to check out before copying a trader. 

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Just now, Captainsaudi said:

Talking about Copy trading, I do use Bitget because the exchange has the most user-friendly copy trading interface that makes available the needed features to check out before copying a trader. 

Yeah, I also use the exchange but will be making my review known by the end of the year.

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19 hours ago, BashJasper said:

I love DCA as an investor but prefers copy-trading as a trader. My philosophy has been 40% investment and 60% trading so, I'm a frequent patron of Cexes with reputation in copy-trading.

DCA is my long term investment strategy. As for copy trading, i was using Bybit and Bitget initially but switched completely to the latter cex cos it gives me more win rates. Its prolly because they have more elite traders than the former yah.

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12 hours ago, XTRAVAGANZA said:

DCA is my long term investment strategy. As for copy trading, i was using Bybit and Bitget initially but switched completely to the latter cex cos it gives me more win rates. Its prolly because they have more elite traders than the former yah.

You got it right there! From the last info available to me, Bitget has over 100k elite traders making it the exchange with the largest and successful professional traders in the space.

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On 01/12/2023 at 23:03, BashJasper said:

You got it right there! From the last info available to me, Bitget has over 100k elite traders making it the exchange with the largest and successful professional traders in the space.

I see, little wonder over $380 million profit has been accumulate on its copy trading plating alone.

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  • 2 weeks later...
On 02/12/2023 at 05:03, BashJasper said:

You got it right there! From the last info available to me, Bitget has over 100k elite traders making it the exchange with the largest and successful professional traders in the space.

🫥 Tbh, I'm not a big fan of Copy Trading. But if you're using the feature,then be cautious when selecting an elite trader!

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  • 2 weeks later...

Tbh I believe every experience trader still maximize the use of DCA , it’s a life saver and a tool that comes in handy especially to investors and those looking longterm. Over time I have achieved quite a lot using this tactics and reduced my loss rate , instead of going all in . I just take one step at a time , now I can boast about how healthy one of my PF I’ve got on bitget is looking atm 

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  • 3 weeks later...
On 24/12/2023 at 10:58, Jaja24 said:

Tbh I believe every experience trader still maximize the use of DCA , it’s a life saver and a tool that comes in handy especially to investors and those looking longterm. Over time I have achieved quite a lot using this tactics and reduced my loss rate , instead of going all in . I just take one step at a time , now I can boast about how healthy one of my PF I’ve got on bitget is looking atm 

DCA is good for SPOT just like I'm doing for BGB. But at derivatives, it's not recommended because with Lev ,if the trade doesn't go as planned,have to take an L and move on. 

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