Amendments to Dollar Cost Averaging in Bear Market

"Maximize profits in bear markets by using Pulsechain for lower transaction fees and convenient trading opportunities."

October 20, 2023· 2 min read
4 score

For people, like me, that buy regularly by DCA (dollar cost averaging) and then are selling regularly in the peaks of the bull markets, its important to think about how the fees for transacting are usually highest during the bull market. In the case of Zcash, the fees seem to be relatively neglible at this point; but in Ethereum fees could be in the $100s or $1000s for 1 transaction.

So, in order to maximize profits, one needs to think ahead and prepare for the high-fee scenarios. For Ethereum, the best way to reduce fees is to use the best scaling solution, which is Pulsechain.com. Currently for the price of 1 Ethereum swap, you could bridge your ETH over to Pulsechain and trade WBTC (from Ethereum), WETH (ETH from Ethereum), HEX (from Ethereum), and DAI (from Ethereum) all tokens that have been wrapped and bridged over to Pulsechain.

In essence you can lock in profits with less overhead, so eventually when the Ethereum fees go outrageous, the trades that won't be feasible on Ethereum (such as converting $300 worth of HEX to DAI with a $200 Ethereum fee, which would actually be a pumpamental) will make having your tokens on Pulsechain already very advantageous.

So, if you want to be prepared for the bull market, you need to start keeping your Ethereum tokens that your accumulating through this bear market on Pulsechain. In this way, you will be able to sell small amounts, in effect DCAing (dollar cost averaging) out of the market; instead of selling too much too soon in one big transaction.

Also, since there's WBTC (wrapped Bitcoin from Ethereum) available on Pulsechain, you can buy/sell Bitcoin with your Pulsechain wallet. Historically Bitcoin fees go up dramatically, during the bull market; so the best place to buy/sell small amounts of BTC may actually be on Pulsechain. Although if your proficient with the Bitcoin Lightning network, then I'd recommend Bitcoin Lightning. It's really nice, and many exchanges have BTC Lightning capabilities, with many more to come.

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