Dollar-cost Averaging: Be Smart with the Market!
If you follow khaleelkazi's Tiktok page, you would notice that he is actively dishing out crypto content daily. He teaches everything crypto. It's quite interesting on Tiktok these days as there are many content creators.
One of his repetitive topics is Dollar cost averaging!. He has done a lot of videos on this topic.
LeoGlossary defines DCA as An investment strategy of buying a fixed amount of a certain asset at regular intervals. This is done regardless of price.
I learned about dollar-cost averaging the hard way after losing a lot In the crypto market. If I could define DCA, I would regard it as a discipline method to avoid huge losses.
Why am I talking about DCA Right Now?
One, because I saw it on Tiktok, and two because I don't want people to lose money during this period. I know it feels like Bitcoin is heading to $40k despite the FED raising rates. Technical analysis from top crypto experts and Crypto-twitter shows that we are set for a Bull run. Let's be realistic, is the pump going to be sustainable? Are we going to witness a pump and dump scenario?
This is where dollar-cost averaging comes in
Since it's at a tricky period and things can go either way, it's best to invest little by little. Another important thing is to note that this isn't the time for selecting random coins and projects. It is best to stick to $Hive and Bitcoin. Hive because your little by little investment would never be a waste. Over time, Hive has proved itself.
Do you know that Hive did well compared to Bitcoin in the last Dump?
There have been some spikes in the Hive price recently. A top Hive Analyst predicts a breakout soon.
Crypto Analysis | Hive About To Break Out Big? By tobetada
The truth is even if the prediction doesn't come through, Hive is always going to perform in hard times.
Bitcoin
"If you want to invest in crypto, BUY BITCOIN!"... This is going to be the best bet at the end of the day. If you keep buying Bitcoin little by little, even if there's a dump, you will always be alive later to tell the recovery story.
In Conclusion...
I won't say the market would crash again because I hope it doesn't. All I would say is, that anyone who wishes to take advantage of these prices should buy little by little, Dont go all in, it's never safe!
What do you think? Is Bitcoin heading to $40k?
Posted Using LeoFinance Beta
https://twitter.com/samostically/status/1552824230621978628
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DCA is the best strategy it takes away all of the emotion that usually leads us to make bad decisions. Just stick to buying X amount every month and don't look at it for the next few years.
Posted Using LeoFinance Beta
In my opinion, DCA is for investors. You’ll think what I just said is too basic but trust me it’s not.
I’m saying that there are traders and there are investors. Most of us are traders who do technical analysis and enter positions to make profits. We(traders) normally enter small positions with small amounts of money so in this case, DCA doesn’t really help you.
Who it really helps is investors who have long-term plans. If you want to buy say 1 BTC for example, in this current market where the markets movement is affected greatly by emotions, it wouldn’t be wise to put in all your money at once, but the better thing to do would be to buy in bits irrespective of whether price is going up or down.
At the end of the month or week, you would’ve purchased your 1BTC at different prices which will ensure that rapid price changes that would’ve affected you will be averted.