DCA — Your personal Damage Control Assistant

By 0xSwego | Daemons | 6 Oct 2022


 

The situation is quite funny. When BTC is pamping we all feel like we have the world in our hands. No-coiner friends, colleagues, neighbors look at us with envy. They bow to our intellectual superiority and curse themselves for not listening to us. We derive our power from BTC. BTC is our bread and butter. We always need more BTC, so we buy. More. All the time.

 

Then, after the pamp, the inevitable and dreaded damp. The shillers become haters. No-coiners that were envious a few months ago, now are laughing their asses off and calling us mindless degens. They aren’t putting even grandma’s tip into this dead market heading straight to the gutter.

However, what you do during these difficult times is what defines the winners of the next bull market. True believers are rewarded for buying during bear markets. Accumulate at cheap prices and wait for your inevitable gains. True diamond hands hold their way through, while paper hands are those that usually sell at the very bottom. If you bought BTC when it was 30k, why wouldn’t you want it at 20k, 15k, or 10k?

What is quite absurd is that, if you didn’t look at the price at all and just buy every month a bit of crypto, you would have nailed it with no stress. It is truly astonishing how such a simple strategy can even outperform trillion-dollar asset management companies and hedge funds, employing the boldest and brightest of financial experts and economists. Look it up, it’s true!

Seriously, we spend most of our investor life looking into predictions, abstractions, and charts so full of trend lines and resistance levels that you cannot even see what you are looking at. The whole space is so packed with noise and personal opinions that astrology feels like an exact science in comparison. Meanwhile, the simplest strategy is often the best. The slow turtle wins the race in the end.

How to play the game

If you have never done a DCA before (Dollar Cost Average), the rules are simple:

  • Choose an asset (DCA works best on long-term horizons, so we would suggest sticking to a blue chip. Something that you really believe in and have a strong conviction in)
  • Choose a duration (6 months, 1 year, 2 years? The longer, the more effective)
  • Choose a frequency (once a week, once a month, twice a month, you name it)
  • Choose a total amount to invest (only invest what you can afford to lose)

Cool, now calculate how much you’ll invest in every occurrence and go with it. It is all about keeping it easy, and constant, without any emotional connection. The trick is to do is as passively as possible, making it feel more like a habit than something stressful.

The moment you stray away from DCA, you lost.

Did we mention Daemons can do that for you?

It’s because it can! It’s so easy to setup through the Daemons dApp, we almost forgot to mention it! All it takes is a couple of clicks, really.

Just visit the new script page and select the Swap action!

Specify the asset you want to swap along with the amount. In this example, we set 100 USDC.

Add the Frequency Condition, specifying how often you want to execute the script. For example, once every 15 days.

The last step is to specify how many times you want the script to be executed, just select the Repetitions Condition and set the amount there.

Click on “Review and Sign” and then “Sign & Deploy script”. At first, a Metamask window will prompt you to verify the script and sign it. Then, another one pop up, this time to allow the contract to access the USDC whenever the script is triggered.

And… that’s about it! You will now be redirected to My Page, where it is possible to see the newly created script. Now you don’t have to worry about it anymore, your DCA will be executed without any further action from your side.

Waaaait, what if I want to stop it?

It’s best that you didn’t, we wouldn’t enjoy seeing you go… If you insist though, just go back to “My Page”, find the script, and click on the X on the top left. This will trigger a cheap transaction to revoke the script (it is the simplest action you can perform on Solidity, so it’s almost free).

 

Do you want to know more about us? Check out our linktree or Discord, our community is always happy to answer questions.

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0xSwego
0xSwego

Creator of Daemons


Daemons
Daemons

Daemons is a DeFi platform that allows anyone to script operations on the blockchain and have them executed when the conditions become true. With Daemons you can create automated DCAs, degenboxes, be safe from liquidations, administrate your investments, in no time!

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