We get requests from time to time to implement automatic trading for savings purposes on Coinmate. And as we like to listen to our customers, we would like to introduce you to DCA bot to bring you this functionality.
How does it work?
It lowers the amount of work necessary to buy crypto on a regular basis. In case you decided to invest in crypto and hold it as savings, your first and obvious option is to deposit FIAT funds and process the exchange yourself. This process is time-consuming and could get pretty tiring in the long run. Luckily, there is a tool that does that for you. All you need to do is to set it up and it gets the work done according to the settings. All you need to take care about is to deposit FIAT funds to your balance and lay back.
What is DCA?
“Dollar-cost averaging (DCA) is an investment strategy in which an investor divides up the total amount to be invested across periodic purchases of a target asset in an effort to reduce the impact of volatility on the overall purchase.”
How to set it up?
It is necessary to register an account at https://dcabot.online/ and set up a buying strategy. You can choose an immediate buying with preset frequency (default), or, much wiser stop-loss order strategy that processes the order when the exchange rate drops. Not only it buys the assets cheaper for you without the need to sit at the screen daily, scowling at the graphs, but it is also cheaper in terms of trading fees. A complete manual for DCA bot setup can be found here.
How will I connect the DCA bot to Coinmate?
To do so, you’ll need your Coinmate account API keys. These can be generated in account settings – API menu. These are basically access points that the bot uses to handle trading on your Coinmate account. The funds are still kept and traded on Coinmate (both FIAT and crypto), the trading bot only handles the funds and does not transfer them elsewhere. For setting up the API correctly, please read this additional article describing API best practice.
All set up? Congratulations, your recurring crypto investments are ready. Now just deposit FIAT funds, so that the bot has what to trade. And we wish you the best development for your portfolio on Coinmate!