DCA in plain words

What it is

DCA, dollar-cost averaging, is buying for the same amount at equal intervals. Once a day, once a week — without looking at the price. When the coin is cheap the same amount buys more; when it is dear, less. Your average entry price ends up somewhere in the middle.

Why do it

• No need to guess the bottom: you buy on a schedule, not on a feeling.
• One badly timed buy decides little — it is one of many.
• Less temptation to go all in at the top because “it is running away”.

What DCA does not do

It does not protect against a fall. If a coin goes down for a year, you spend a year buying a falling asset, with your average price above the market the whole time. DCA smooths the entry; it does not turn a bad asset into a good one.

How it works in Nexora

• You set the amount of one buy, the interval (at least an hour) and the number of buys in a cycle.
• Buys are market orders, on schedule.
• After the set number of buys the bot waits for the price to rise above your average by a set percentage (from 1%), sells the whole position and starts the cycle again.

DCA or a grid

A grid is built for frequent swings and needs an eye on its range. DCA builds a position gradually and asks for almost no attention. A grid is for a choppy market; DCA is for when you want the coin anyway and do not want to pick the moment.