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

[Captainsaudi]

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?

 

[BashirJasper]

DCA is actually an efficient way to invest in crypto especially when you do it strategically on a regular budget and buy them when low and sell when prices go up.

 

[Captainsaudi]

DCA is actually an efficient way to invest in crypto especially when you do it strategically on a regular budget and buy them when low and sell when prices go up.

Yeah, Buying low and selling high is the hope of every trader that is why DCA is an effective way to curtail it but is mostly cool if you trade on exchanges with a very low trading amount and also gives airdrops opportunities for trading.

 

[Zeddicus]

Yeah, Buying low and selling high is the hope of every trader that is why DCA is an effective way to curtail it but is mostly cool if you trade on exchanges with a very low trading amount and also gives airdrops opportunities for trading.

That's true and I always utilize platforms like Bitget, kraken among others to DCA esp the former with lot of earning opportunities via their various earning products.

 

[Captainsaudi]

That's true and I always utilize platforms like Bitget, kraken among others to DCA esp the former with lot of earning opportunities via their various earning products.

Well, i know that Bitget has one of the lowest trading balance ($5) and fees in industry added with a huge APR in their flexible saving program.

 

[ImamShaheb]

That's true and I always utilize platforms like Bitget, kraken among others to DCA esp the former with lot of earning opportunities via their various earning products.

Haven't used Kraken yet😑. But Bitget's UI is 🩷.... To be specific, my DCAing on BGB worked hard!

 

[ImamShaheb]

Well, i know that Bitget has one of the lowest trading balance ($5) and fees in industry added with a huge APR in their flexible saving program.

I've traded with $2 on their futures 😑

 

[Cryptomonk]

Dollar Cost Averaging (DCA) is a prudent strategy to accumulate tokens, and exchanges like Binance, Kraken, and Coinbase often offer relatively lower trading fees and minimum balances for traders.

 

[BashirJasper]

I've traded with $2 on their futures 😑

Futures balance on BG are considered the lowest. Even their transaction fees are more transparent than most exchanges such that you can plan your trades effectively. I'm speaking from experience though.

 

[Captainsaudi]

Futures balance on BG are considered the lowest. Even their transaction fees are more transparent than most exchanges such that you can plan your trades effectively. I'm speaking from experience though.

I had similar experience using the exchange. The exchange also has one of the most friendly UI.

 

[I am Praise]

Yes, i have used the DCA strategy to increase my equity overtime and i still use it to acquire tokens im interested in. And i mainly watch out for tokens with low mcap, good fundamentals and tokenomics.
Talking about low fees i use Bitget and Bybit and they both offer low fees, though i use the former cex more cos they are quick to list new tokens than the latter and being early is key to profitability in this space.