Saturday, May 25, 2024
HomeBTC‘Buy the Dip’ bot for making more money in bitcoin

‘Buy the Dip’ bot for making more money in bitcoin

A Reddit user, named Samjhill, has developed an automated dip-buying bot. It outperforms dollar-cost averaging (DCA) into Bitcoin by about 10 percent. DCA is a method in which investors buy a small amount of something, regardless of price changes. It operates in opposition to traders who are focused on getting the best entry price. It performs on working with perfecting the dip timing, and avoiding “catching a falling knife.” The “Buy the Dip Bot” tries to “use a limit technique to achieve the best price for a particular asset.”

The bot places limit orders at various intervals below the current price, and it restarts whenever an order is completed or cancelled. The cost to run is inexpensive, “around USD 5 per month”. The bot, which has been working since December, reached a major milestone yesterday. “The price-per-coin advantage is roughly (cheaper) 5-10 percent right now.” Sam informed Cointelegraph when comparing profitability to traditional dollar-cost averaging.

He also said that conventional DCA certainly makes more sense for the people who recently started purchasing bitcoin, because their aim is usually to load as many coins as possible. Those, having a substantial stack of bitcoin and wish to avoid raising their cost basis, may profit more from using this bot. Sam became interested in Bitcoin in 2013. He has used both DCA and the limit technique.

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