Buying the dip is easier said than done. As much as each of us would like to buy near or at the lowest price for a coin, more often than not, many of us would commit the “buy too early” mistake as the price keeps plummeting.
This is where a crypto trading bot comes in handy. Instead of trying to time the market, it is simply better to just buy-the-dip (“BTD”) in an objective manner. Removing emotions and FOMO from the equation is a good first step in this BTD strategy.
A crypto trading bot like CryptoHero would be able to assist a trader to execute an effective BTD strategy. A trader can configure the crypto trading bot to buy when certain indicators are flashing “oversold” conditions.
Does a BTD strategy sounds like Dollar Cost Averaging (DCA) ? It does because it is.
A seasoned trader would also accompany a DCA strategy by coupling Martingale accumulation to it. A Martingale strategy simply increases the amount of coins to buy at each lower dips. The end effect is the the average cost price would be substantially lower should the market rebound.
Hence, for any trader or even new users exploring the world of automated algorithmic trading, having a DCA crypto trading bot should be the most important consideration.
After all, we can never time the market, but we can always buy the dips.