Crypto Investing Strategy - Cost Averaging

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Avatar for NinoJade
3 years ago

What is cost averaging?

According to the online sources:

Cost-Averaging is an investment strategy in which an investor divides 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.

So you want to invest your money, but the market is too unpredictable? Then Cost-Averaging Strategy is right for you.

As what you've seen on the graph, you can minimize the risk and maximize your earnings with cost averaging. It is a great strategy if you don't want to invest all your eggs in one basket, you just have to divide your money and invest it periodically, it depends on you. It can be daily, weekly or monthly.

This is a secure strategy because you don't know how the market is going to evolve, today it maybe higher, but tomorrow the price maybe lower. If you put all your money on the higher price, you basically risked it because tomorrow it may have a lower price.

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3 years ago

Comments

Thanks for sharing, @Cold3ndice

$ 0.00
3 years ago

At least with this method you remove your emotions out of the equation. ;)

$ 0.00
3 years ago

I agree, you may panic using this as an investment strategy, which may lead to bad decisions. But, there are many investment strategies that I'm going to publish on this Read.cash.

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3 years ago

That awesome. :)

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3 years ago

Thanks <3

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3 years ago