An important strategy of investing is the dollar cost average, a technique actually to buy crypto with lower risk. Instead of putting all your funds at one go, you invest into parts in a consistent amount of time.
Why is that kind of investing so important? Because this is going to neutralize risk and reducing the impact of volatility on the overall purchase. Let’s think about it. The best scenario for gains is for sure is to buy at the lowest price.
The problem is you cannot predict the crypto’s price in the future and you cannot time the market generally. Surely the technical & fundamental analyses are useful to get better probabilities, but in the crypto market, there is too much hype to trust your intuition.
This technique is targeted mainly for holders, for people who want to grow their crypto amount for a long-term profit.
Another benefit of DCA is that if don’t have to know technical analysis for the time to enter the market, you buy consistently a small number of your funds every week or month or whenever you choose.
Of course, you can be a bit flexible regarding the DCA approach and programming your purchases during corrections, “buy the dip” in other words.
Remember that your goal here as an investor or a holder is to collect as many coins of value as possible. 🦾
