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Tech Trading ~ Investing Tricks

Crypto Dollar Cost Averaging (DCA) VS Grid Trading

Dollar cost average and Grid trading are the strategies one can use to increase the level of earnings in trading Stocks, Cryptocurrencies and investing.

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The Crypto Market Ranges for it cares about going up and coming down. Highs and Lows come together to make the Trading profitable or in Losses. Observe the Charts to see this for yourself. This is why Crypto DCA and Crypto Grid trading strategies work well in good setups. Grid trading performs best in volatile and sideways markets.

When I started using the Crypto Dollar cost average technique, I loved how I was able to recover my initial investments. Dollar-cost averaging in Cryptocurrency trading is a strategy where the investor buys assets over a period of time. The investor buys more amounts of the assets on depreciation of above 10% or more dip. Disregard the popular story of buying an equal amount over time regardless of price is the abnormality in Cryptocurrency trading. The best DCA strategy is buying a higher amount of the asset as the asset dips and taking profits on a fixed percentage of the total investment. This ensures that the trader makes a consistent profit over time.

To simplify Dollar Cost Averaging (DCA) in crypto trading, trusted apps have been discussed here to cover their strengths and weaknesses.

Cryptocurrency Grid trading is a strategy of entering multiple positions at equal or definite price levels in a given range. This is automatically carried out on Binance, Huobi, and other Exchanges. Grid bot automates buying and selling of contracts on the defined price levels in a range. Grid trading tends to make profits in ranging markets. On Binance Grid setups, in Arithmetic mode, each grid has an equal price difference (in the amount of $$), and in the Geometric mode, each grid has an equal price difference ratio (in percentages).

Advantages of Crypto Dollar Cost Averaging (DCA) Trading

  1. DCA works in every market condition. The best way to be profitable using the DCA trading strategy is to buy more of the assets at a defined percentage dip.
  2. Dollar-cost averaging on SPOT trading has been known to work well as the market comes down and goes up.
  3. Can be traded on most wonderful mobile Apps like 3commas DCA bots, Good Crypto App, and using manual DCA strategy.
  4. Buying more on a certain dip level ensures that you make profits quicker in volatile market conditions.
  5. DCA trading Apps are cheaper or free to purchase.

Disadvantages of Crypto DCA Trading

  1. Dollar cost averaging needs large capital setup for operation.
  2. The Trader must know when to DCA as you should buy more on the dip level.
  3. Apps like 3commas, Royal Q bots, GoodCrypto App, etc that performs DCA needs good setup strategy. Setup mistakes will lead you to having a bag of the coin with a huge floating losses.

Advantages of Crypto Grid Trading

  1. Best for ranging markets and volatile market conditions. The crypto market is all about this.
  2. Perfect Grid setups make constant money. Grid trading makes constant buying and selling within the range. The more the market hover within the range the more money you make.
  3. Grid trading is perfect for SPOT and FUTURES trading. On Huobi Exchange you can setup this with only $5.
  4. You can maintain a one way grid to match the trending market.
  5. Can replace Dollar cost averaging strategy as different buying and selling levels will act as cost averaging strategy.
  6. Can be setup on Native Exchanges, 3commas grid bot, and few apps.
  7. Crypto Grid trading strategy works well in all market conditions.

Disadvantages of Crypto Grid Trading

  1. When price leaves the Grid, it makes more losses when compared to DCA.

Crypto DCA VS Grid Trading

  1. Grid Trading is better than Dollar Cost Averaging (DCA) Trading. Market ranges occur in every time frame, good setups can print you more money.


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