Using Dollar Cost Average To Enter & Exist A Trade
In 2020, I began my cryptocurrency journey by buying and selling crypto currency exchanges in my country. I mainly trade TRX and XRP on the local crypto exchange Quidax. It is very dangerous to buy when the price is low and sell when the price is high; I lost a few times.
I started blogging and joined Steemit one of the best forums that rewards users, and I must say the trip was rewarding as I learned a lot of new things, met a lot of great people, and learned about crypto and finance. Some of my personal qualities, such as patience, have improved. I started trading spots on Binance in 2021, and I enjoy it because the risk is almost non-existent. You do not have to worry about losing all your money if you invest the right way, especially in the right crypto with resources and usage cases. All you have to do now is watch your money go up.
Dollar Cost Average (DCA)
I have been planting several tokens, most recently at JST, the JustLend platform token, where you can provide and borrow various TRC-20 tokens and earn revenue by providing a specific APY based on the token you provide. I gave the stadium some of my tokens, and I was awarded the TRC-20 tokens right into my wallet. I recently made a profit on my investment in the JST coin. To buy and sell token, I use Dollar Cost Average (DCA). I will show you why this strategy is harmless and a good way to enter (buy) and exit (sell) trading.
Average Dollar Cost to Enter a Trade (Buy)
This is the point where you buy a token clip at various costs to get the best quantity; this is especially helpful if you are using a dip. This ensures that you do not enter the trade too early or too late. For example, if you think you have $ 100 and you want to buy a token ... You bought a token with $ 20 when it was $ 3, then it went down to $ 2, so you spent another $ 30, then it went down to $ 1.5, so you have planted another. $ 20, and it eventually dropped to $ 1, so you bought $ 30. You have successfully invested $ 100 in an average price of $ 2.
Dollar Cost Average For Trading (Sell)
This is the point at which you sell a token in pieces at various costs to get the best price; this is especially helpful if you are using a pump. This ensures that you do not trade prematurely or too late. For example, if you think you have 100 JST, and it currently costs $ 0.9 and you have seen that token will pump or token pump, you can use DCA to sell, you can sell 20 JST for $ 1, and then continue to sell 30. at $ 1.5 and the other 30 at $ 2 and at the last 20 at $ 3. You have successfully sold 100 for an average price of $ 1.5.
Conclusion
This method has proven to be the best way to invest, especially if you are a newborn or do not understand technical analysis. You can simply do a basic analysis of the token and make a Dollar Cost Average to buy or sell it ...
I hope you found it useful; thank you for taking the time to read it, and God bless you.