The Best Strategy in Cryptocurrency: The Dollar Cost Averaging (DCA)

By Hirose Yamasaki | Hirose Yamasaki | 20 Apr 2023


Hi Cryptorians

 

Today, let's talk about the cryptocurrency investment strategy. From my point of view, the best investment strategy in cryptocurrency is the Dollar Cost Averaging (DCA) as the market is always up and down. Normally, the new investor or inexperienced investor will jump into cryptocurrency and  lump sump their money thinking that the market always go up. But it will not always happened like that. 

The reasons I like DCA method so much is that:

a. DCA method will not cause us to time the market every time we want to entry, we just fix a single time or day or once a month to do do regular entry. One secret, the best time to do the DCA is in Saturday as the market is closing on that day.

b. DCA method will averaging the cost of purchase of particular coin. This is the utmost important things, as we can't time the market accurately, event though we are using sophisticated technical analysis and fundamental analysis. For example as shown in figure below, with lump sump cost of $1000 compared to DCA cost of $1000, weekly payments, we are getting more units of cryptocurrency from DCA method. 

6599279de3c3988c5238a2297eded39cd3c4ecf578176600a2cacbd758742ca0.jpg

c. DCA method will ease of our mind. The DCA will not cause us to monitor the market 24/7 that will cause headache and unhealthy situations to our body.

d. DCA method will always make us a disciplined investor. When we always do the regular savings, we would be always in the market, not only during market is bullish, but also in bearish mode. Some people left the market when market is bearish. 

That's all, mate. 

Remember this, there are time the market is up and there are time market is down, the market is not ours. So, the best investment strategy is the DCA methods. My takes would be DCA in weekly basis, every Saturday.

 

"Listen to All, Decide for Yourself"

 

 

 

 

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Hirose Yamasaki
Hirose Yamasaki

Simple Investor I Ghost Writer I Super Affiliate


Hirose Yamasaki
Hirose Yamasaki

My journey in cryptocurrency

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