I see many newbies in the crypto space asking influencers or experienced ones how to make money in crypto? when to buy a coin? , How much to buy? etc etc…
personally, I have been in crypto for almost 5 years now. I have tried and tested many strategies. But only Dollar Cost Averaging (DCA) technique worked for me.
Dollar-Cost Averaging is an investment strategy in which we invest equal amounts of money in regular intervals of time or whenever you find the perfect opportunity to invest in. By using this strategy the high volatility effects of markets can be avoided.
So whenever you find a project interesting or promising in the crypto space, Instead of investing all your cash in it at a time and betting that it only goes up from here. You can divide the money you want to invest into 4-5 equal parts and try to invest it in regular intervals or whenever there is a dip in the market. In this way, you are mitigating the risk and avoiding the high volatility of the crypto markets.
Let us understand the dollar-cost averaging strategy with an example:
Suppose you have 300$ and you want to invest in Cardano ($ADA). Instead of investing everything at one once. You can divide your investment into 3 parts. So whenever you see a dip, you can buy it. This method of averaging the investment is called Dollar Cost Averaging (DCA).