This is the big question that every investor should ask himself before putting his money in a cryptocurrency, since it depends on it to get rich or lose the investment. We help you answer it.
There is a lot written about cryptocurrencies, because to make money there is never a lack of gurus and magical strategies that promise returns from day one.
The reality is that investing is complicated and requires a lot of knowledge. And despite this, no one promises you positive results. We could even say that it is normal to lose money.
Fifth the luck of the one who put 1,000 euros into Bitcoin 10 years ago and is now rich, the usual thing is that the process of invest in crypto with small but safe steps, so as not to risk too much while we obtain benefits.
And in that direction it goes the investment method that we bring today, which can be the best model to follow for all those who do not want to break into a business that can be very hostile.
Instead of trying to follow the market every second, many investors use a strategy called Dollar-Cost Averaging (average cost in dollars) or DCA for its acronym in English.
This is used to reduce the impact of market volatility by investing smaller amounts in an asset on a regular basis. In this case, cryptocurrencies.
DCA may be the right choice when someone believes their investments will appreciate (they will increase in value) long-term despite experiencing price volatility down the road.
DCA is a long-term strategy in which this situation often occurs. Example: investing 100 euros in Bitcoin every month for a year, instead of 1,200 euros in one go.
Although DCA is a popular way to invest in Bitcoin, it is not unique to cryptocurrencies, as traditional investors have used this strategy for decades to weather stock market volatility.
The key is to choose an affordable amount and invest regularly, regardless of the asset’s price., the experts explain. Since it has the potential to average the cost of purchases over time and reduce the overall impact of a sudden drop in prices on a given purchase.
As you can see, the answer to the question is: any moment is good, if you know how to invest.