Is Dollar-Cost Averaging (DCA) a good strategy during bear crypto market?
First of all, it is essential to understand what DCA acronym stands for and that comes from Dollar-cost averaging which is an investment strategy in which an investor splits up the total amount to be invested across periodic purchases of a target asset in an effort to reduce the impact of volatility on the overall purchase. And above it all, it transpires consistency across an investment period through periodic purchases which ensure an average of the asset price, rather than getting a higher price if you were to buy on the peak.
And as we are in a bear market which I consider will deflate even more, I believe that applying the DCA strategy is at an opportune time as ever. The cryptocurrencies have shown their potential, and some shitcoins inflate along, but now and in the next period the stronger ones and the ones that address real use cases will resist and thrive in the end. It is not an investment that will pay off tomorrow, but one that might shine in a few years. And as these are the times that make the difference for an investor, I have decided as well to follow it up.
So in the next period, I intend to buy these each Monday during my work break (12:00-13:00) certain assets using the DCA strategy. My current options are Bitcoin, Ethereum, and HBD as I want to build up also a good stablecoin portfolio that should alleviate any downfalls over a longer period of time. I might include also some other assets like ThorChain RUNE, but I don't want to expand too much my basket.
This is my next move in the crypto market to use DCA to add some more assets to my portfolio. I wonder what strategies are you using and what assets are you adding to your bags in this bear market. Feel free to jump in with some new things on this or your experience and approach to building in such uncertain times.
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I think using the DCA method is great, especially in a bear market. You can't call the bottom so might as well buy all the way down to the bottom, yes?
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That's right, this is the way I see it too. That and have also an exit point and your investment will surely pay off.
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Yes an exit point, good idea. I should really set one up actually, for every thing...stocks too. Thanks for the reminder
My personality think that the bear market is the best time to start investing because in further future the price will rise up again. So I think in the time of Bear market we should not hold our asset in stable coins, we should try to understand where kind of good crypto projects . It's a good strategies in my opinion.
I think its the only method in town, although I would try to increase the frequency to every week or 2 weeks. a lot can happen in a month.
Right, the cyclicity in my case is 1 per week, each Monday. Buying spree in the beginning of the week :)))
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Nice work. I like it. Bringing the Average buying price down nicely.
If you believe in the long term future of crypto, then starting to DCA at this point is a smart strategy.
Certainly not buying the top anymore at least ;)
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Yeap, a good time to start it during these bear market times...
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