DCA is good for Investing in Crypto

Investing is a good habit that we all should follow because this is how we grow our money. We need to earn money but it is equally important to invest somewhere that can grow the value as keeping it depreciate its value. In every country, we have a term called inflation which means the value of the money is increased by a certain percentage every year and to deal with this situation it is recommended to do an investment. The investment should also be done on something that can generate higher returns than the inflation rate then we can expect some value increase else it is not profitable at all. For example, the inflation rate in India is about six to 7% and even the fixed deposit interest rate is almost the same so if someone does an investment in FD in banks then its not grow the money. It is just adjusting the inflation on the funds but overall there is no growth on the monetary side.

DCA is the best Strategy

I started investing in Crypto using the dollar cost averaging in the year two thousand and twenty and since then I have been doing the same. This is one of the best investment methods. I believe the technology should make things automated and with DCA it is possible because I need not spend time on the analysis and just a one-time setup is sufficient to keep the purchase going as per my preference. I prefer to buy Bitcoin through DCA on a daily frequency because this way it helps me to have the Bitcoin at different pricing. if the market is high then it will buy at a higher price but if in case there is a crash then also it buy at the market price so overall there is an adjustment on the buying price that is also known as the average out terminology.

DCA its the same as the systematic investment plan that is mostly used with mutual funds however few things are better here with dca on crypto coins. now the majority of exchanges provide these functions and they do not charge for using this service however they can be slight charges for the buy and sell which is part of their revenue generation. They give the flexibility to choose any frequency including daily weekly or monthly and they also provide the option to buy using some lump sum amount.

Long-Term Approach

I did buy Bitcoin when it was higher probably around $30,000 a couple of weeks back and I also bought it when it was less than 25,000 us dollars as we have seen just a week before. I think we can't track the market closely unless you are full-time in crypto. I'm not full-time on crypto and I do it whenever I get some spare time so for me using the DCA is very helpful because I need not spend more time on my purchase and my approach is for the long term in this market. whatever Bitcoin I am buying through the dollar cost averaging is for the next bull cycle and I don't know when it is going to come but there is no change on the plan that I have already decided. During the last bull run, I have observed that holders earn more than the traders and because of this region I also try to be a holder because trading is something that is not my cup of tea. I buy certain points when there is a market crash with the liquid funds I gold but that is not part of my DCA investment because this is something I do not want to disturb.

Crypto is here to Stay

We need to believe that crypto is here to stay and no matter what happens in the market that brings some negative news around but we need to stick to our plan. I believe that Crypto is not going anywhere and I'm not bothered about what exchanges are doing because I believe if we minus our holding and try not to hold everything on the exchange wallet then it is good for us. We need to keep the funds that we use for trading only in the exchange wallet and a hardware wallet is highly recommended to have. If you hold only hive tokens then the hardware wallet is not required because our tokens are safe and nobody can access them unless your password is not compromised.

Now the market has turned green and This is good for all of us because this is what we all expect but again it is a market and fluctuation is the basic nature of any market. The market seemed to be in a good state but still, it is a good time to buy however DCA is still the best. Buying Bitcoin at this price can be a profitable deal in the long run because most of us expect that in the next cycle, it is going to cross 100k USD and this way we have a long way to go so keep on investing.

Thank you