DCA Definition
DCA stands for Dollar cost averaging. DCA is a strategy to manage price risk when you’re buying stocks, ETF, crypto. Instead of purchasing shares at a single price point, with dollar cost averaging you buy in smaller amounts at regular intervals, regardless of price.
Considering the high volatility of cryptocurrencies, it is a very good strategy. It is better to allocate all or most of the share to Bitcoin.
DCA Benefits
- Risk reduction
- Lower cost
- Ride out market downturns
- Disciplined saving
- Prevents bad timing
- Manage emotional investing
HowTo DCA
Select the desired cryptocurrency to invest.
Bitcoin: Our recommendation is only Bitcoin due to high volatility. (Even Bitcoin has a history of 75% correction, which is much higher for other tokens.)
Altcoins: If you want to take advantage of the high growth of altcoins, it is better to sell them around the top.
Choose the right exchange and wallet.
exchange key-points:
Have the currency of your choice.
Have a high volume of transactions.
Have the ability to transfer money.
Don’t have a ban on depositing and withdrawing up to your amount.
Deposit money into your account.
Buy the asset (Preferably Bitcoin)
Protect your asset.
Safety issue: Exchanges are never safe to hold digital currency assets. (due to issues such as hacking, bankruptcy, fraud, legal pressure)
Hardware wallet: Transfer your cryptocurrency assets to a hardware wallet.
Private Key: this is the only way to access your wallet. (there is no user-name & password or email access in wallets)
Safety: Put the private key of your wallet in a safe place (also put it in your will because it cannot be recovered in any way)
Repeat to buy in a regular intervals regardless of price.
