it looks like thing’s aren’t great price wise in Crypto currently. I thought it could be a good idea for both new people and experienced crypto people if we did daily / weekly learning posts, whether this is about certain words and term (such as DCA) or whether it’s about platforms, a coin, or blockchains etc. These could help educate people further so that we are in good stead for when things really start to pump again, whenever that is.
Dollar Cost Averaging is a very useful method of investing in some of your favourite coins, it can be spread out in any number of ways from a set weekly figure to doing it every monthly pay day.
With Crypto being a very volatile market, DCA’ing helps to reduce some of the risk associated with this space, so you may get some coins at their lowest price and buy in as it goes up this would bring your buy in average up. In other instances you may buy a portion high, and when it drops buy more, this would bring your buy in price lower.
As mentioned above this reduces the risk of having to time the market as the investment prices will vary each time and will be done for the most part based on times and is a consistent way of investing. we have likely all had a good investment by timing the market, I do also feel we would’ve all been burnt by investing when timing the market, I definitely have
What must be considered is someone’s financial position, if you are after a quick profit (risky) then DCA probably isn’t right for you due to it’s slower investment time, also the fluctuations in price can see your returns lessened but is considered safer.
hope this helps anyone that didn’t know DCA!
13 thoughts on “Why DCA Can put you in an excellent position when the next bull run arrives”
I don’t DCA. I wait until prices hit such ridiculous lows that I am physically unable to prevent myself from buying Crypto.
Last Bitcoin purchases were at 32k and 33.5k respectively. Not buying again unless we see 29k.
Right now I put money in anchor, just stable coins. If the price drops further I will use that dry powder to buy in more. The point we’re at now is too precarious for me. I’ll wait it out a bit.
DCA is a very good concept, but unfortunately also a very lucrative one for exchanges. they shill it on every occasion and charge you then for 5% or more on every buy you make.
so better be clever about it and find a good DCA solution without high fees
DCA is the way to make the most of your crypto investment. Best way to tackle volatility.
These are bargain prices to DCA at but sadly my pockets are only filled with worthless Monopoly money
I like this innovation. A lot of persons don’t have any investment plans with crypto and tht’s why they run at loss most time. This should be informative enough for those who read it.
Personally, my pattern is DCA’ing and hodling. One can never go wrong with that pattern. I went ahead to research on projects that would yield some passive income while hodling and I found a few. TeneoFinance stands out for me though, it has a great framework and reward plan. I’m so going in on it when it goes live officially tomorrow.
So my plan is to invest 600 every month (300 per paycheck) and so far I have roughly .58 ETH at an average of 2,750 dollars. How do I dca when I plan on holding for 6 years to buy a house and be financially successful? I’m only 21 and married with a kid so it’s just hard for me to grasp the context of dca when I plan on just holding ETH for 6 years and adding 600 a month plus adding tax money every year and adding what my wife makes at her job when she gets one. I’m just confused on how to dca on my investment or if I should invest in other things since I plan on staying in for 6 years
I now buy BTC, ETH, and CRO daily. It’s all automated and I done with the lowest fees that I know of. Started in earnest with the last crash.
What should I do if I don’t have any money?
**The award goes to DCA**
That’s the plan my guy
DCA. DYOR. Don’t invest more than you can afford to lose. We all gonna be rich in 10 years.
Spreading the Hopium!