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Why I think Dollar-Cost Averaging (DCA) is the Best Strategy for Investing for most investors.

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Why I think Dollar-Cost Averaging (DCA) is the Best Strategy for Investing for most investors.

Dollar-Cost Averaging (DCA)

For the people not knowing what Dollar-Cost Averaging (DCA) is, it consists in investing a fixed amount of money at regular intervals regardless the price of the asset/coin. For example: If you have $100 to invest per week, you invest that amount every week without taking care the price of BTC.

This are the reasons why I think it is the best strategy for most of people:

  1. Reduces the impact of volatility: It helps to smooth out the impact of price swings by investing the same amount over a long time, meaning that you have less risk to get caught in sudden price movements.
  2. Removes the emotional element: As we all know investing in crypto is a roller coaster of feelings. When prices go up, FOMO and hype appears and when it goes down panic. Investing a fixed amount at regular intervals removes this emotions.
  3. Disciplined approach: It helps to stay focused in long term goals and avoid getting distracted by short term price movements. It also helps to build good investing habits that can be used to other things in life.
  4. Automation: As you buy the same amount every an exact time you can automate it and reduce the effort you need to put to buy crypto.

Regarding to DCA out, it applies the same rules. You reduce the risk to get caught in sudden prices movements.

TLDR; DCA in/out and enjoy life

DCA and enjoy life

Disclaimer: This is not a financial advice ????????????

submitted by /u/kirtash93
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