A trader tinkers with a robot and grabs all the bitcoins

Gains in automatic mode? – Within the stock markets, and even more so in that of cryptos, the strategy of the “Buy the Dip” (buying the bottom of the market) is well known and often practiced. And including by the way now by a country: El Salvador, which buys Bitcoin (BTC) at each low point. A trader, however, is a master in the art of buying BTC at the lowest price.

The art of grabbing the ball (Bitcoin) on the leap

From investment strategies the simplest and wisest, that of Dollar-Cost Averaging (DCA) is often acclaimed. She allows to smooth a purchase price of an asset, by buying it regularly. For example once a month.

As Cointelegraph reports in particular, a trader known on Reddit as Samjhill managed to develop a trading bot which enabled it to beat the performance of a DCA strategy.

simply called “Buy the Dip Bot”this automatic trading mechanism manages to invest perfectly at market lows, while avoiding entering “The Falling Knife” (i.e. buy before the actual low point is reached).

The robot accomplishes this feat by placing limit orders, at several price ranges, under the current course of Bitcoin. And if an order is executed or canceled, it places an order lower, and so on.

Excerpt from the Buy the Dip Bot web page

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Results up to 10% better than a classic DCA

For a very modest operating cost, announced at approximately $5 per month, this robot trader succeeded in optimizing the purchase of bitcoins. It allows on average to obtain BTC for 5 to 10% less than with the strategy of Dollar-Cost Averaging. So many more satoshis for the same amount invested!

The designer of this trading bot, however, gives very good advice to newbie investors in the cryptosphere:

“For people just starting out, regular DCA probably makes more sense, because your goal is probably to set aside as much BTC as possible. For those who are further along in their journey, they may already have a good amount saved [en Bitcoin] and seek to minimize the increase in their overall cost price. It is the latter who can therefore benefit more from the method. [utilisée avec ce bot]. »

The trader does not intend to stop in such a good way, and wishes to adapt his robot specialized in the purchase of low point for the ethers of the network Ethereum (ETH). If you want yourself improve yourself in trading and investing in crypto-assets, do not hesitate to follow the free learning guides offered in collaboration with the Coin Trading.

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