Taking emotion out of DCA

Hello,

Not everyone knows this, but on a multiple of exchanges you can set up an automated bot to DCA into crypto. You can configure these yourself. I chose Binance (used to use Kucoin but there has been some FUD around Kucoin. Binance seems really stable though), its called Auto-Invest under Earn.

There’s some advantages to this:

\- You take the emotion out of DCAing. Buying on “run-ups” can feel wrong, or manually dcaing into a neverending downslope can ultimately force you to capitulate and quit dcaing. Using automation makes it easier to stick to your plan

\- If you buy once per month/week, you are really dependent on the day of your DCA. With automation you can DCA **daily** without effort, which ensures a better spread.

\- You don’t have to keep track; the bot does it for you and you can export it to Excel

\- Binance specifically automatically deposits your investments in earn, so you earn a (low) APR on your investmens as well. Great for longer time horizons

**What I do:**

I calculated the amount I wanted to invest, determined my investment horizon (2 years) and divided my investment by 730 (# of days). Set up two bots on Binance (75% ETH 25% BTC) that buy each day at 11:00 (before US wakes up and pumps prices). Loaded some BUSD onto Binance, and occassionaly when my funds threaten to dry up I send some stablecoins from my Metamask which is linked to my Ledger.

Pro tip: hold majority of funds in self-custody on wallet with ledger connected if you don’t trust exchanges. Send more funds to CEX when funds dry up.

Pro pro tip: you can also move the coins you invested in occassionaly off exchanges

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11 thoughts on “Taking emotion out of DCA”

  1. I think the last year or two has disproven the wisdom of DCA.

    I buy once every few months if prices are low enough. If they are not I wait longer.

    Reply
  2. I said this before but many people set out to DCA or buy and forget. The reality is very few do. People find it hard to do so when they are constantly checking Reddit or their portfolio. Every time they check it’s a little dose of dopamine. It’s addictive.

    Reply
  3. I use a service to buy the same $ amount of BTC automatically every week. It does reduce the emotional aspect of investing.

    Reply
  4. keep a buying schedule

    keep a crypto budget and dont go over it

    doing the above stops you from chasing FOMO

    Reply
  5. You’re either DCAing or you’re not

    If you try and time your regular buy-ins then you’re not DCAing and instead you’re trying to time the market

    Just my 2 sats

    Reply
  6. I like to buy when I see a bloody red day and it hurts to buy on green day.

    Usually weekends market dump so I set my dca on dumpy days.

    Reply

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