A simple but effective investment strategy.
Investing in cryptocurrency can be exciting, but it can also be intimidating, especially with the volatility of the market. However, what if there was a way to reduce your risk drastically? Enter dollar cost averaging, a simple but effective investment strategy that allows you to invest in cryptocurrency without worrying about market fluctuations. In this story, we’ll explore how dollar cost averaging works and why it’s becoming increasingly popular among crypto investors.
What is dollar cost averaging?
Now, what is DCA exactly? Well, it stands for Dollar Cost Averaging, and it simply means regularly investing a fixed amount in an investment, regardless of the price. If the price goes up, you’ll get less of the investment product for your money. If the price goes down, you’ll get more. The idea is that you don’t have to stress about timing the market, but rather continue to invest consistently, regardless of the investment climate.
Let’s look at a practical example. Say you decide to invest €100 in bitcoin every month using DCA. In the first month, the price of bitcoin is €10,000, so you’ll get 0.01 bitcoin for your €100. In the second month, the price rises to €12,000, so you’ll get 0.0083 bitcoin for your €100. But in the third month, the price drops to €8,000, so you’ll get 0.0125 bitcoin for your €100. Do you get the idea? You’ll get more bitcoin for your money when the price drops and less when the price rises. It doesn’t matter what the price does, you just keep investing consistently.
Start DCA now!
So, if you’re looking for a stress-free way to start investing, definitely consider DCA. It’s a simple and lighthearted approach to investing that’s suitable for both beginners and experienced investors who seek stability and consistency in their investment strategy.
With the blunded X BTC direct widget, dollar cost averaging is now even more easy. Just follow the steps on our buy page and you’ll be ready in 5 minutes. With a recurring bank transfer (automated), you’ll receive the crypto of your choice monthly, weekly or whatever interval you choose, without any hassle.