While using automation in trading is never a good idea for someone who wants to work with a couple of tokens instead of diversifying, there is a viable strategy that will work best at the moment. It is called DCA buying.
DCA stands for Distributed Cost Average. It is a strategy that has a very distinct goal of accumulating a portfolio without overpaying for assets. The general idea is to buy assets in several different portions instead of getting bulk and dumping your money on the market.
How does DCA work?
Your capital should be split into multiple small portions and spent on several buy orders. The ideal situation is to wait until the market goes down a little.
Purchasing over a long period of descending price movement is the best scenario. However, you may buy at prices slightly higher and slightly below what you started with.
DCA allows investors to use their weekly or monthly income to purchase small portions of assets. Since we are in a bear market right now, it is a good strategy in general if you believe in crypto.
The end of 2023 is a perfect opportunity to buy some Bitcoin or Ethereum as well as other promising coins like Cardano (ADA), Polygon (MATIC), and Algorand (ALGO).
It seems that prices will continue falling for a while. You can capitalize on this trend by purchasing small amounts of crypto during a descending market and building up a portfolio without overpaying for tokens.
Using DCA bots from a trusted vendor is a good idea at the moment. Choose your provider wisely and the DCA strategy will pay off!
There is no point in rushing
Carefully consider your options before entering the market using bots. While it is a good idea at the moment due to market circumstances, the situation may change in the future. Buying before the market is overtaken by bulls is the most important priority.
Note. The article above is not financial advice. It is the opinion of the writing staff and should not be taken as an investment council.