Crypto speak: DCA
“Dollar cost averaging” (DCA) is an investment tactic in which you routinely buy an asset for a predetermined sum of money regardless of its price (a great tactic for hodlers).
▪️ The strategy’s objective is to minimize volatility and give you peace of mind amid erratic markets. You systematically invest equal amounts without ever looking at charts.
Example: If you have a budget of $1,000 per month, you could invest $250 every Monday or buy $1,000 worth of Bitcoin on the first of each month.
▪️ This strategy allows you to have a more balanced purchase price for the asset: It’s better to buy BTC 10 times for $1,000 than once for $10,000. DCA is suitable if you don’t want to fray your nerves while following the market.
▪️ Discipline. Investors are susceptible to FUD and FOMO 🙂 Emotions get in the way of profitable investing and sober risk assessment. The DCA strategy completely removes you from the market and frees up your time for more useful things.
In general, if you’re a hodler by nature, this strategy is definitely for you!
