What is Dollar-Cost-Averaging?
Ruben Waterman Getting Started June 16, 2022
Dollar-Cost-Average (DCA) is a simple investment strategy where you invest a fixed amount, no matter the price or fluctuation of the market. It aims to balance the cost of your investments, minimizing risk and the stress of market ups and downs. It’s perfect for bitcoin!
The opinions expressed in the blog are for general informational purposes only and are not intended to provide financial advice or recommendations.
Reduce the stress of timing the market and #hodl
While it would be great to consistently get bitcoin when the market is at its lowest, timing the market is difficult. How do you know if you are buying at the top of the market or the bottom? Would it be lower tomorrow? Should I wait or do it today?
Even professional investors get it wrong and miss key opportunities. The best strategy is to put money in regularly without stressing about what the market’s doing. Plus, you’ll buy more often and accumulate more bitcoin without having to think about it!
Note it’s always a good idea to keep an eye on the market and top up your bitcoin balance whenever you find a good opportunity.
How can I Dollar-Cost-Average my bitcoin?
To DCA, simply set up an amount and rhythm - daily, weekly, monthly - automate the transactions with bittr and get bitcoin recurringly in your wallet. Is that it? Yes, it’s that simple. You can adjust your amount and rhythm or pause anytime. You are in control!
Over time the purchase value will find a balance between the ups and the dips. Your bitcoin balance keeps growing - hassle-free. For example, if you invest €50 in bitcoin monthly, you can set up two payments of €25 every other week. After 3 months, you’ll have purchased €150 bitcoin in six single purchases, and you’ll start noticing the effect of DCA. It tends to work out much better than investing €150 all at once, particularly in the long run.
Do you have any questions? Reach out to us at firstname.lastname@example.org!