There are three main ways to automate trades.
The first and most common one is DCA, or Dollar Cost Averaging.
This is a formula that most people might be familiar with and you use it to purchase a fixed amount of crypto (or any other asset) on a fixed schedule.
You decide the schedule. It can be weekly, monthly, daily, whatever you want.
The whole point of DCA is that it is statistically proven, for assets that have been around for a while at least, that in the long run, you’re always in the green.
The idea is that one dollar tomorrow will always be worth less than one dollar yesterday. And by contrast, an asset like commodities and securities tomorrow will always be worth less than yesterday.
So, by using DCA, you’re buying BTC at $10k today, at $20k tomorrow, and then at $10k the day after.
The idea is ten years from now, it won’t matter whether you bought it at 10k or 20k, it’ll still be worth more.
Also, unless you’re a professional trader, DCA is more effective, and less stressful, than trying to time the market.
“Time IN the market beats timing the market,” as they say.
This article was crossposted on Publish0x.
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