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Do you DCA?

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by COINS NEWS 174 Views

A lot of people recommend the method of dollar cost averaging but I'm curious about how many people actually employ that strategy. Dollar cost averaging by definition is "investing the same amount of money in at regular intervals over a certain period of time, regardless of price". I think it has both it's benefits and downsides.

Pros, it is a consistent layering strategy that will net your cost basis down when the market might be tumbling. It removes emotion and keeps you in a long-term mindset, which we know is the best timeframe if you want to be the most successful in crypto.

Cons, if the market is moving in a definitive direction (bearish or bullish), it could reduce your efficiency and return on investment. By that I mean instead of putting the same amount of capital every week, dynamically changing how much you invest based on market movements could be better (Putting in more when things are down, less or none when things are pumping)

I personally do DCA, I do it every Monday. And I think the benefits help me, especially removing the emotion part of it. What about you?

submitted by /u/Dazzling_Lime2021
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