#DCA (part 1)
Reading the article, everyone advised to manage capital and divide capital to DCA. But few who enter the market can do it.
There are 2 ways to DCA:
*** Method 1: Active and automatic DCA. This method is similar to depositing money into savings or piggybacking regularly every day/week/month depending on your ability. Following this option requires:
- You must have a stable source of income.
- You must be a disciplined and patient person.
Imagine, every day at 9am, you put a 50k bill into the pig, then after 2-3 years you will have 50 million in hand. But if you remove the piggy bank, the amount of money will remain the same as the principal, neither born nor lost (not taking into account inflation). How long do you have the patience to wait without killing a pig?
Or, every month you receive your salary, you spend money to buy 1 tael of gold. Regularly after 3 years you have 36 gold trees. Gold is neither created nor lost, it's still equal to the original you bought which is 36 trees, the profit or loss is when we convert it into currency to calculate.
If at that time the gold price increases, you make a profit, and vice versa, if the price decreases, you make a loss.
With coin, you can also do the same, set an automatic buying schedule every day/week/month, depending on your financial capacity and preferences. Every month you spend that much money and buy, that is the method of accumulating assets according to the DCA method - price averaging.
But the cryptocurrency market is different from accumulating money and gold. Because it fluctuates very strongly, after a few years when you hold a certain amount of coin, you can become a billionaire if the coin price at that time converted to USDT (fiat currency) increases many times. On the contrary, the risk is also... (... read part 2 of the next article).
