A Strategic Approach to Crypto Investing (DCA)

Have you every heard about DCA investing? If not then this post will be informative for your guys. The post is not too much lengthy, therefore you must read till the end.

DCA or Dollar Cost Averaging is a method in investment which helps investors to not invest all of their money at once. This method is the practice of investing a fixed dollar amount in different levels or intervals.

Let me explain in more simple words. DCA is a kind of method where you invest your amount in different parts. Let suppose you want to invest in #hive as a DCA method.

Which means you have to invest in different levels whenever the coin keeps on falling. The main purpose is to bring your buying average down where it will benefit you once the coin price increases.

The current price of #hive is around $0.34. In DCA you will have to buy one part of your money at current rate. Then you have to wait for the price to fall further.

If suppose the price comes down to $0.32 which is about 7% then you will buy another portion of your money. It depends upon the investor strategy that at what percentage difference they will buy keep on buying.

Some investors set at 5% while some sets at different percentage depending upon the market condition. Similarly, you will buy #hive at different levels until you have money.

A time when the price rises then you will see how you have get huge benefit after applying DCA method.

This is how this method works and what are the benefits of it.

THE ABOVE IMAGE IS TAKEN AND DESIGNED IN CANVA

THANK YOU!

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