Dollar Cost Averaging: The best strategy for investing in Crypto

Hello Everyone,

The dip in the past few days been quite terrible seeing projects in the crypto space on a continually fall and some going to dust (particularly that of Luna and UST). That's a story i believe that's story we all know about.

The situation in the market has caused predictions from technical analysis to fundamental analysis to be thrown out of the window has they all seem to be falling at the moment.

The past 24hours has witnessed about 3.27% dip in global crypto market cap which is about 40 billion loss. While all this continues to happen, the best strategy that has proven to be successful in bear situations or down markets overtime is dollar cost averaging.

How dollar-cost averaging works

This strategy requires buying in bits your favorite coin all the way no matter the price. Here you set an amount to invest at regular intervals. Using Bitcoin for example, it can be seen that it has been hovering below 30k. It could go further less to 20k. Using this strategy enables you to keep catching the knife till the market stabilizes.

A better illustration will be, for instance, you have a target of getting $1,500 Bitcoin before year-end. With DCA you get to split the lump sum into weeks or months. $125 if it is monthly, then you keep buying all the way.

Many experts have to agree that this method is much safer strategy for investing in crypto has it lower risk and with a decent reward as it offers a better chance of benefiting from market swings

Wining in this market is not about speed but strategy and buying in bits with DCA is the best way to go. Growing your account requires patience and DCA’ing enables you stay profitable overtime. Bitcoin buying for example never disappoint especially when using this strategy. Slow and steady usually wins the race.

Thanks Reading

Posted Using LeoFinance ^Beta