💰Capital-Efficient DCA

Dollar Cost Averaging

Key Information

• Typically a passive strategy

• Reduce investment risk by spreading out your purchases over time

• Usual timeframe for DCA orders are days to months

What is DCA?

Dollar-Cost Averaging (DCA) is an investment strategy in which the buyer spreads out their purchases in equal instalments over a specified period of time. The primary aim of the DCA strategy is to mitigate the impact of market volatility by investing across different market conditions. Instead of committing a lump sum in a single transaction, DCA smooths out your overall costs, lowering your cost basis.

Here is an example of how a DCA strategy might work. Let’s assume a trader wishes to invest $1,000 in BTC. As the market fluctuates every day, the trader is unsure about the best entry price. By using the DCA strategy, the trader can invest $100 every day for the next 10 days to protect their investment from market volatility over the same time horizon.

Why our DCA?

Unlike many other protocols that transfer the total investment amount upfront at the time of transactions, Twap.fi takes a unique approach. With Twap.fi, the DCA function transfers only the precise amount needed for each transaction, rather than the entire lump-sum amount. This approach not only provides users with enhanced control over their funds but also ensures that Twap.fi is not held responsible for any potential loss of funds during the investment period, reducing risk and increasing user trust.

With Twap.fi, users can seamlessly trade across various cryptocurrencies, choose from a wide array of wallets, access multiple EVM-compatible blockchain networks, and even select preferred aggregators. Twap.fi focuses on extensive customisation in order to continuously improve the trading experience.