The 8Pay DCA feature allows users to automate their cryptocurrency investments using a Dollar Cost Averaging strategy. Dollar Cost Averaging involves making regular investments over time, regardless of market conditions, to mitigate the impact of volatility and potentially benefit from long-term growth.
To create a DCA investment, users need to follow these steps:
Select Input Token and insert Input Amount. Users can choose the token they want to invest with and specify the amount they want to allocate for each investment.
Set Swap Frequency: Users can define the frequency at which the swaps will occur. For example, if a user chooses a monthly frequency, the DCA will execute a swap every month based on the specified parameters.
Define Output Tokens and Percentages: Users can select one or more output tokens to receive as a result of each swap. They can allocate a percentage for each output token. For example, a user may want to allocate 50% of their investment to BTC and 50% to ETH.
Once the investment is created, 8Pay will automatically execute the swaps according to the defined parameters. 8Pay will swap the specified amount of the input token for the output tokens based on the percentages set by the user.
The decentralized exchanges (DEX) used for token swaps depend on the blockchain on which the investment is created. Here are the DEX used for each chain:
BNB Chain: PancakeSwap
These DEX platforms are carefully chosen to ensure efficient and secure token exchanges, providing users with a seamless experience for their Dollar Cost Averaging investment strategy.
Here's an example to illustrate how the DCA feature works.
John sets up a monthly investment of 1000 USDT. He wants to allocate 50% of the investment to BTC and the remaining 50% to ETH. 8Pay will automatically execute the swaps each month, converting $500 into BTC and $500 into ETH. This allows John to gradually build his crypto portfolio over time, spreading out his investments and potentially benefiting from the long-term growth of both BTC and ETH.
By using the 8Pay DCA feature, users can take advantage of automated, regular investments in the cryptocurrency market while implementing a proven investment strategy. It provides convenience, reduces the impact of market volatility, and enables users to gradually build their crypto portfolio over time.
Please note that the availability of specific tokens and the supported swap pairs are listed in the select menu, offering a variety of options to choose from.