Given the growth that the crypto markets have made in recent months, the probabilities of approaching a market top are every day higher. This is where the DCA approach can work wonders by sharply lowering investors' exposure to the risk of a market top.
What is DCA?
DCA or Dollar Cost Averaging is an investment strategy that consists of buying assets at regular intervals for the same amount without taking into account the market price. For example, buying $ 100 of bitcoin / month is a DCA approach. This strategy is very popular with long-term investors because it is one of the least risky methods and does not particularly require graphical analysis or advanced knowledge. DCA allows investors to bypass the high volatility of crypto markets and therefore reduce the time and stress required to invest in these markets. In addition, regular buying allows you to have a smoothed average price and therefore to be less exposed than a compulsive buyer to a fall in the market.
How to set up a DCA?
Before launching a DCA, investors must determine how much they are willing to invest with each purchase and the time between two transactions. After that, you also have to have a platform that does not take too many fees (because there can be a lot of transactions) and that is compatible with this approach. Below you will find links that will offer you fee reductions on transactions for each platform. Finally, all that remains is to set up an automatic DCA or manually buy the assets at regular intervals. Create a Binance account : https://www.binance.com/fr/register?ref=J432ELAV
Create a Bitforex account : https://www.bitforex.com/en/register?inviterId=2692625
Create a Gateio account : https://www.gate.io/signup/3783852
Create a Ascendex account : https://m.ascendex.com/register?inviteCode=J2HWGOV1
