Dollar Cost Averaging in Cryptocurrency

[Shaf]

Cryptocurrency is one of the riskiest investment strategies out there, but it's been one that is getting more attention from individuals, critics and supporters and even government especially after the massive profits that some people made in the last bull run.

If you are interested in putting the your money here, you should do your research properly, and dollar cost averaging is a strategy that has been proven to bre a good way to buy cryptocurrency for maximum returns.

What you do is that you have to buy a coin with a specific and fixed amount of money at regular intervals without regards to how low or high the price is at that moment. Most people do this over 12 months. This is a long term investment strategy, hence you need to pick a coin that can withstand the test of time and one you have a lot of confidence in. You also need to have a strategy for taking profits so you can make the best out of this strategy.

 

[Suba]

Dollar Cost Averaging or DCA is just an investment strategy that we can apply to almost all types of investment instruments, such as stocks, mutual funds, gold and crypto. This DCA strategy is often used by investors who are unsure about when to purchase investment instruments. But if we apply it to cryptocurrencies, DCA's investment strategy seems to be inaccurate because crypto prices are at the bottom. The current bitcoin price is $16.8k even some analysts predict the Btc price will be below $14k, so I think if you have $10k cash it's better to wait a few months until the Btc price is below $14k, and use a lump sum strategy to buy Bitcoin and estimate will be above $20k within a year or Nov 2023. So the DCA Strategy will also limit the potential profits you will get.

 

[uforwealth]

Although it may not apply to all types of business, dollar cost averaging is a strategy that solves many problems if not all. Beginners in any investment may initially find it very difficult to understand and make profits from investments they do not know how they work. However, with the help of Dollar Cost Averaging strategy, They can be rest assured that they have nothing to lose but everything to gain.

The strategy is stress free as it works automatically. So don't have to bother yourself on what to do and when to do it to make profit.

It saves time so that you can have time to do other things that can ensure your success in life.