āHow DCA Works
What is DCA in the Solana Ecosystem?
Dollar Cost Averaging (DCA) is a trading strategy where an asset is bought or sold in small portions at regular intervals (e.g., every minute, hour, or day). On Solana, DCA orders are executed via a smart contract aggregator, which splits a large transaction into multiple smaller trades.
How It Works
Example of a DCA order: š¢ "Buy PNUT every minute for 30 minutes, allocating $30,000 per minute."
Each new DCA order is publicly visible on-chain. The aggregator ensures that the order is executed repeatedly (e.g., every minute) until it is completed or manually canceled.
Why It Matters for Trading
Large DCA orders can temporarily push the price up or down.
For smaller and mid-cap tokens, these orders create noticeable volatility.
Tracking DCA activity in real-time can reveal short-term trading opportunities on CEXs and DEXs.
Use DCA ONLY to automate monitoring and stay ahead of the market.
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