What is DCA?
Dollar-cost averaging (DCA) is a strategy that involves purchasing equal amounts of assets at regular intervals. This strategy aims to achieve better average prices for the selected trading pairs and reduce the impact of market volatility.
What is a trading bot?
Trading bots are automated software designed to help users buy and sell cryptocurrencies at predetermined intervals to make a profit. To learn more, please visit What Are Crypto Trading Bots and How Do They Work?.
What is the DCA Spot bot?
With Binance Spot DCA, you can set the amount you want to buy, when to buy it, and when to sell it. Based on your parameters, this strategy can help you to:
Buying more when prices fall, or
Sell more when prices rise.
In Buy mode, the bot aims to get a lower average buy price by placing more buy orders when the market price falls below your initial trade price. This process continues until the market price exceeds your take-profit percentage, then the bot will initiate a sell order. This process is repeated as long as you have sufficient funds in your wallet.
Tip: Select Buy mode if your initial investment is in the form of a quoted asset (for example, USDT).
In Sell mode, the bot aims to get a higher average sell price by placing more sell orders when the market price exceeds your initial trade. This process continues until the market price falls below your take-profit percentage, then the bot will initiate a buy order. This process is repeated as long as you have sufficient funds in your wallet.
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