✅ Why I Only Use DCA on the Buy Side—And Why You Should Too

Hey guys! Let me share a key lesson from years of crypto trading—one that can save you big losses and help you trade smarter on Binance.

Many traders think they can Dollar Cost Average (DCA) both on buys and sells.

Sounds logical, right?

Average your position whether price goes up or down.

But trust me—that’s a trap, especially on the sell side.

Let’s talk numbers.

❌ The Problem With DCA on the Sell Side

Imagine I sell a token at $10, thinking the price will drop.

Instead, it pumps to $20.

If I try to average out my sell position, I’d need to sell more at $20 to bring my average closer to the market price.

But here’s the catch:

the coin is now worth $20.

DCA’ing here means increasing my losing short position.

Even if I sell more, my original $10 entry drags my average far below the market.

Say my trade is showing a -1000% loss.

DCA at $20 might reduce the loss to -100%—but I’m still deeply underwater because the price doubled.

That’s why DCA doesn’t work well on the sell side—it only compounds risk in a rising market.

I’ve tried averaging up on shorts before.

It just dug me into deeper losses. So I never DCA on the sell side.

✅ Why I Only DCA on the Buy Side

Now flip it around.

Let’s say I buy a coin at $10, and it crashes to $1—a 90% drop. My trade is down -1000%.

But here’s the magic of DCA on the buy side:

At $1, I can buy 10 times more tokens for the same money.

My average price drops sharply.

Even a small pump from $1 to $2 can bring me close to break-even—or into profit—because my new average entry is lower.

When the price crashes, the token becomes cheaper.

You can lower your cost and set yourself up for gains when the market bounces back.

That’s why even if I know a price might crash, I’d rather leave a trade on the buy side.

Easier to fix or adjust later.

✅ Bottom Line

Never DCA into a losing sell position.

The risk is huge. Keep DCA for the buy side—where price drops work in your favor.