To be honest, I also started from being a complete novice.
When I first entered the circle, I would stare at the market fluctuations every day, with my emotions fluctuating along with the K-lines. I was scared of a downturn after buying and feared missing out after selling, and my mindset collapsed several times. I tried manually buying the dip and chasing prices, and followed others' strategies, but the results were mostly small profits and large losses.
It wasn't until I got acquainted with spot DCA that I felt I found a method more suitable for me—setting the rules in advance and letting the strategy execute for me. It isn't a guaranteed profit tool, but it did solve my problem of "not having time to watch the market and easily being led by emotions."
Today, I will systematically share this method I discovered as a beginner with other newcomers who are also confused.
1. What is DCA?
DCA stands for Dollar Cost Averaging, also known as the Martingale strategy.
It is a strategy to lower the cost of holdings by gradually increasing positions during price fluctuations and taking profits after the market rebounds.
The core idea is quite simple:
- Set rules in advance, gradually increase positions during price pullbacks, and take profits when preset conditions are met.
- You don’t need to make last-minute decisions on "whether to buy" every time there’s a drop, nor do you need to monitor K-lines every day for opportunities.
Here’s a closer example for beginners:
Suppose you are ready to invest 50-100U in trading.
If you buy in all at once and the price happens to pull back, you may end up in an awkward situation: if it keeps dropping, you won’t know whether to add more; if you don't add to your position, the cost becomes high, but if you do add, you'll fear buying even more as it falls.
What DCA does is set these actions in advance.
For example: the first order invests 21U; add another position when the price meets the condition; execute the next position if it continues to pull back; take profits after reaching the preset profit target.
The entire process is executed according to the pre-set rules.
For instance, Binance's spot DCA requires a minimum operation threshold of only 21U, which is very friendly to beginners with limited funds.
Therefore, what DCA truly changes is not your judgment of the market but the way you execute trades. It shifts from "deciding after seeing the market" to "setting rules in advance and letting the strategy execute."
2. What are the differences between spot DCA and contract DCA?
AiCoin's DCA currently offers spot DCA and contract DCA.
Spot DCA is relatively easy to understand.
It directly involves buying and selling spot assets, without involving contract leverage and liquidation mechanisms.
For those who are just starting to encounter automated strategies, the trading logic is relatively simple: buy in batches, lower holding costs, and take profits when conditions are met.
However, there is one issue to watch out for: if the market continues to decline, the strategy could keep increasing positions, which will also increase fund occupation.
Contract DCA, on the other hand, allows for participation in different market directions, while also involving leverage and more complex risk management.
Therefore, if you are trying automated strategies for the first time, it's advisable to start with spot DCA to fully understand the operational logic.
3. What makes AiCoin's all-coin DCA different?
Traditional DCA typically requires selecting one coin first and then setting the buying rules yourself.
AiCoin's all-coin DCA broadens the scope further.
1. Coverage of all coins
DCA can cover all coins and automatically search for opening opportunities that meet conditions. You don’t have to go through dozens of coin K-lines every day.
2. Create strategies by sector
Supports filtering strategies by market capitalization, sector, and custom combinations. Suitable for those who don’t want to bet on just a single coin.
3. Supports various strategy conditions
It’s not just "buy if it drops by a certain amount"; you can design it based on your trading logic.
4. Supports historical data backtesting
You can filter strategies through big data backtesting, and users can directly execute the chosen strategies.
However, it must be noted: backtesting results are only references and do not guarantee future market performance will replicate past results.
4. If you don't want to use the recommended strategies, you can also create your own
In addition to directly selecting existing strategies, AiCoin also supports manually creating DCA.
You can set: trading coin and direction, how much to add after a drop, single add position amount, individual take profit target, maximum number of added positions, initial investment amount, added investment amount, etc.
If you want to make further adjustments, there are advanced parameters: strategy cooldown time, maximum number of coins held, maximum number of pending orders, DCA starting conditions, and stop-loss triggers, etc.
Beginners can start by understanding the existing strategies, and once familiar, try adjusting parameters themselves.
5. How to operate in practice?
If you are ready to start with spot DCA, the process is not complicated.
1. Register and complete Binance account verification
Registration link:
https://jump.do/zh-Hans/xlink-proxy?id=3
(Invite code: aicoin668, enjoy a 10% rebate)
2. Complete Binance API authorization in AiCoin
Important detail: API authorization only requires enabling trading permissions, do not enable withdrawal permissions.
3. Enter all-coin DCA and select spot DCA
You can filter based on market capitalization, sector, custom combinations, coins, etc.
4. Select a strategy or create your own
If it's your first time, it's recommended to choose an existing strategy; once you have a clear logic, then manually create one.
5. Set the investment amount (minimum 21U to start Binance spot DCA)
Confirm the risk agreement and then run the strategy.
Once the entire process is completed, subsequent trades will automatically execute according to the set rules.
6. DCA is best suited for solving the issue of "not having time to watch the market"
The biggest problem for many people doing trading is not that they completely do not understand technical indicators.
It’s just that during the day, they are busy with their jobs and do not have time to watch, and by the time they check the market in the evening, it has already moved. If they see it rising, they want to chase it; if they see it falling, they hesitate to buy. In the end, they get trapped in the dilemma of "to buy or not to buy" every day.
The significance of DCA lies here—it writes part of the decisions that need to be made on the spot into trading rules in advance.
You don’t need to re-make plans due to every short-term fluctuation.
But this does not mean that once set up, you can just ignore it.
Automation only helps execute the rules; the rules themselves still need your responsibility.
7. What is the biggest risk of DCA?
This point must be made clear in advance.
One of the biggest risks of DCA is encountering a continued one-way downturn.
This is because the price may keep triggering add conditions, resulting in continuous fund occupation. If there are too many adds and the single investment amount is too large, even if the logical strategy remains unchanged, you may find yourself unable to continue executing it due to insufficient funds.
So when setting the strategy, do not only look at "how much has been made historically," but should focus more on:
- How much fund needs to be invested at maximum?
- How many times will the position be added at most?
- If the market does not rebound, can I afford it?
These questions are more important than simply looking at backtesting profits.
Do not participate with living expenses, loans, or funds that you cannot afford to lose.
Limited-time benefits:
If you want to actually experience spot DCA, we have prepared a newbie benefit this time:
Activity time: September 20, 12:00 - September 22, 12:00 (UTC+8)
Complete the specified steps during the event, and the first 5 eligible users can receive a 7-day AiCoin PRO membership trial.
After the membership is activated, you will unlock:
- Large orders: Real-time tracking of big capital movements to assist in deciding whether to start or adjust DCA
- Chip distribution: Helps to more clearly judge add and take profit positions
- Custom period & professional charting tools: Enhance the quality of strategy parameter settings
How to participate:
1. Register on Binance and complete KYC
Registration link:
https://jump.do/zh-Hans/xlink-proxy?id=3
(Invite code: aicoin668, enjoy a 10% rebate)
2. After the registration is complete, contact customer service and reply: [DCA] + Binance UID + AiCoin UID
The first 5 eligible users can receive a 7-day AiCoin PRO membership trial.
One last thing:
The real focus of DCA is not on "can it automatically make money."
Rather, it offers a different way of trading: setting rules in advance, executing in batches, and reducing the interference of emotions at the moment.
If you usually do not have time to watch the market but want to try automated strategies, you can start with a small amount of money to fully understand the entire process and parameter logic.
The strategy is a tool; fund management is your own responsibility.
Join our community, let's discuss and grow stronger together!
Official Telegram community: https://t.me/aicoin_support
AiCoin Chinese Twitter: https://x.com/AiCoinzh
Binance benefits group:
https://www.aicoin.com/link/chat?cid=gmLgwvKD1
Risk warning: This article is for market information sharing and strategy introduction only and does not constitute any investment advice or profit guarantees. The price of crypto assets is volatile; participate rationally according to your own situation.
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