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Dollar cost averaging Liquidity pool over binance ! Is it good?

Binance

Cryptocoins Exchanges / Binance 261 Views

Providing liquidity to a pool could be very rewarding as I see it and I provide liquidity to pool of different cryptos paired with USDT. Now I understand the impermanent loss and I feel that impermanent loss is negligible compared to over 10% reward and I'm planning to redeem my Liquidity when the value of crypto will be above original buy price.

Now I was wondering if Dollar cost averaging a liquid pool is a good idea? For example, I provided Liquidity to MATIC/USDT pool when MATIC was at 1.2$ and when it hit 0.9$ I added more to liquidity and similarly when it hit 0.8$ I added slightly more considering that I'm dollar cost averaging.

As far as I can understand this seems like reducing cost and if price goes greater than 1.2$, I'd be in more profit compared to if I only held the liquidity I had at 1.2$ without DCA.

Any insight would be welcomed. I just wanted to ask since I couldn't find this question anywhere else.

submitted by /u/hapkasto
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