How does DCA investment strategy work for cryptocurrencies?

The real money comes not in the buying or the selling, but in the waiting – Charlie Munger

Munger may not have been talking about the crypto market, but the underlying philosophy holds true for the asset class. Crypto markets are made up of two types of investors – traders and HODLers. To many, the difference may not be evident, but their behaviour and approach to investments cannot be more disparate.

To a HODLer, short-term price fluctuations are insignificant, while  ..


To a trader the ideal advice would be – if you’re losing money then end the trade at your defined stop-loss range, while for an investor the ideal advice would be to buy every dip and HODL. Traders hold assets until they reach short-term success while HODLers follow the buy-and-hold principle. HODLers invest their crypto for some years, decades, or even longer.

For most crypto traders, volatility is a fact of the market they’ve accepted and try to take advantage of. To counter the effec ..

With multiple buys and when the investment amount is divided across, one can maximize the odds of paying a lower average buy price over time. Additionally, dollar cost averaging allows you to get your money to work on a frequent basis, which is an important variable for long-term investment growth.

Say you plan to invest $1,200 in Bitcoin this year, you have two alternatives:

A) You can invest all of your money at one shot, or
B) You can invest $100 each month.

On ..

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