Crypto trading bot: DCA bot for Binance

Before we jump into the crypto trading DCA bot, let’s briefly cover what DCA is, and how can this trading strategy be automated.

What is DCA?

DCA or Dollar Cost Averaging is a trading strategy that is supposed to minimise the risk associated with trading volatile assets (such as cryptocurrencies), by averaging out your buy price over a prolonged period of time. By doing so, a DCA strategy aims to remove the need to time the market, which is typically an import part of a BTD or Buy The Dip strategy.

Therefore, DCA for cryptocurrency is a good strategy for traders with lower risk tolerance, or simply, investors who lack the time and/or patience to time the market (Investopedia, 2021).

A DCA strategy could be as simple as buying a certain cryptocurrency every week. Doing so consistently you will average out in the long run.

For an deep-dive into the actual code and process of writing this bot, watch my latest video here:

The DCA trading bot for Binance

If you’re already familiar with DCA and its benefits, and have tried it for a while, you will have probably come across one of the limitations that come…