#DCA: What type of trading is this and how to use bots?
DCA is a way of trading and investing that reduces the impact of volatility. A large investment is divided into smaller pieces, which are invested into the asset according to a set schedule. Dollar Cost Averaging, or DCA, is an investment strategy that is designed to reduce the impact of volatility when purchasing an asset. This approach attracts the attention of traders, given the fluctuations in the exchange rate of Bitcoin and altcoins.
The essence of DCA is to break a large amount of investment into small parts, which are invested in an asset according to a certain schedule. However, there may not be a large amount - the investor can simply invest part of his income in the asset at a certain frequency.
Once again, in simple words: an investor invests in an asset at a certain time, regardless of the exchange rate. This approach is believed to reduce the impact of volatility.
DCA is suitable for those who prefer passive income. With an averaging strategy, passive investors do not need to study the market or monitor the situation in it to choose the “optimal” moment for a trade.
The opposite of DCA is LSI (lump-sum investing), where the investor invests the entire amount at once. Of course, proponents of both approaches have arguments for their effectiveness.
If we talk about the advantages of DCA, then in addition to simplicity and possible protection from volatility, there is one more thing - protection from emotions. This approach protects against the fear of making the wrong decision and from regrets that the decision could have been better.
The strategy is suitable for beginners, long-term cryptocurrency holders and those who are not inclined to take risks.#DCA #binance #investors!
#binance #CryptoRank analysts spoke about participation in airdrops.
Specialists from CryptoRank told how to become a drop hunter. They recommended studying current airdrops. It is recommended to find out which projects have recently implemented free token distributions and which activities have brought the most benefit. There is also a need to explore services and tools related to on-chain analysis and KYC.
It is important to understand how many drop hunters there are and how you can stand out among them. It is recommended to farm several projects in parallel on the same wallets - the effect, according to experts, will be cumulative. Analysts noted that "the quality of storage exceeds their quantity."
Experts recommended using online reputation services - Trusta and Nomis. This will help improve the “condition” of your wallet. You also need to get Galxe and Gitcoin digital passports. The first one is much easier to arrange, so it already has many “sybils”.
Transactions should be made on the Ethereum network while gwei is low. Typically such periods occur on weekend mornings. After the Dencun update, the cost of commissions decreased by 10 times, and therefore the threshold for entering drophunting also dropped.
Experts recommend exploring young and promising ecosystems. There is less competition there, since you need to register separate wallets and perform other actions. These include Aptos, Sui or Stacks. You can also ask family members to help with KYC registration.
The researchers emphasized that “drophunting is dominating the scene and the importance of distinguishing between genuine user participation and the manipulative activities of “sybils” becomes paramount. Projects are now using a combination of on-chain reputation systems and KYC measures to combat this problem.” Experts are confident that it is impossible to completely overcome the “sybils”.#drops #airdop