In this article, I’m going to talk about dollar cost averaging and why it’s a good way to invest, especially when it comes to crypto. There are a lot of things that have worked well for me, and I think this is the best way to go about the crypto world when things are so unpredictable. Getting into this is important for me because there have been a lot of questions about whether or not it’s too late to buy into crypto. Should I wait until it falls? Is now a good time to buy this project? Because I don’t know and neither does anyone else.
Nobody knows what the future holds.
You should be wary of YouTubers who say that they can tell you when certain things will happen based on technical chart analysis and other things. I think that’s all just a bunch of bullshit. People who do chart analysis and other things like that probably know more than I do. The best thing you can do with crypto is just keep buying it over time and then wait for it to grow in value.
Don’t try to time it because that will be very risky and also very difficult. It’s impossible for any of us to know what the future will be like. That’s why I can’t answer this question.The other reason is that I’m not a licensed financial advisor, so I can’t give you direct financial advice. That’s not all I can do for you. I can give you my own experience and my own perspective in the hope that that will help you when you’re planning your own strategy, too.
Find a strategy that works and stick with it.
Because that’s the most important thing, you have to find a strategy that works for you. Whether you’re investing in real estate, the stock market, or crypto, this is true: You need to be careful with your money. If you want to be successful, you have to find a strategy that works best for you and that you can keep up with.
Consistency is the most important part of any strategy. Then, if you can’t be consistent with that strategy, you should look for a new one. Consistency is always the most important thing to keep up with. To do dollar cost averaging, I try to make sure I buy things at the same price over time Dollar cost averaging is when you don’t pay attention to any price changes, noise about certain projects, or FUD pieces that come out.
If you believe in a project, you don’t pay attention to all of that if you don’t pay attention to the price changes. I think that for me, that’s Bitcoin, then Ethereum, and then Cardano. As long as you have projects that you’re really excited about and you’ve done some research, you should be able to do well on them. We have already talked about how much money you’ll get from this. Do all of your research and believe in what you’re doing, then just try to get as much as possible and not worry about the short-term and only think about the long term.
The Best Crypto Investment Strategy is automated
In order to do this, the best crypto investment strategy is to make a small investment each week. It’s even better because with 3commas, you don’t have to do this yourself at all. You can set up a weekly investment that will happen without you having to think about it.
So, no matter what the price is on that day, you can still invest every Wednesday. You can invest 50 bucks, 30 bucks, ten bucks. If you keep up with the same thing for a long time, it doesn’t really matter how much money it costs.
The reason I do this is because you can’t predict these big swings, these big ups and downs, and especially when there are cycles in bitcoin and all the other cryptos follow it, so it’s been very useful for me. At this point, there are these cycles where there are big spikes and big drops in the price. Try to time that, and you might lose a lot of money.
As for altcoins, when there’s a lot of volatility and movement, that’s the most important thing to keep in mind. There are a lot of altcoins out there that I’m very wary of, because I don’t like to trade and I don’t think it’s fun to try to catch a « flash in the pan. » It’s more likely that if you try to invest in an altcoin that goes up by 300 or 400 percent in a very short amount of time, you’ll lose out because you’ll get in too late and the price will go down.
Take the stress out of crypto investing
It would be easier if you just ignored all of that and invested every week, no matter how high or low the price was. That would take the stress out of trying to time it just right! In the cryptocurrency world, it can be stressful because there is so much price movement and this is your money that you’re investing. So that’s another thing about dollar cost averaging. So it’s not easy not to keep track of every single move. It’s hard not to keep up with the spikes and the dips and all the other stuff.
But if you just follow a very consistent plan, the chances are that over time, the value will go up. A lot of people make the same kind of bet in the stock market. When you think about it, it’s very likely that the stock market will crash at some point in the future. This is because things have been speeding up in this way. Even though those things might happen, if you invest consistently, you will make more money in the long run. You will be able to get all of those spikes and dips. And you’re not putting all of your money into it at the same time If you’re going to invest $10,000 in something like Bitcoin, don’t put all $10,000 into it right away.
Because the next day, it could be down five or $6,000, and you don’t want to lose all of your money. You then miss out on a huge chance to buy something at a lower price. So instead, you could break that $10,000 down into, say, $100 per week. When you spread it out so much, you’re going to get a lot of different prices. So this is the least I try to do, but I know it doesn’t work for everyone. I know a lot of people try to get in on the big moves and it’s fun to trade, especially now with all the coins. Because you can make a lot of money if you make a lot of good trades, I can see why. Besides, you can also lose a lot of money. It’s a high-risk, high-reward kind of place.
Invest in your future by looking at the broader picture.
It’s a good idea if you believe in something like Bitcoin. If you believe in something like a theory, then you can just keep buying it over time and not worry about how much it costs now. This is the most difficult thing for me to do, though.
Try not to worry about how much it costs in your own currency, because in the long run, that won’t be as important. How much Bitcoin or how much Ethereum or whatever the project is, how much you have. Do not think about how much the project is going to cost. A simple way to look at this is to look at this number. You can get 23,000 for 0.37 Bitcoin. Right now, that sounds like a good deal. You can start with that, it looks like. In ten years, 0.37 bitcoin could be worth 400,000 dollars.
Don’t worry about getting in at the right time
I’ve put 43,000 into Bitcoin, and it looks good. We don’t know for sure at this point, but that’s something that’s very, very likely if we keep seeing these bull cycles and bull runs. So if you think about it like, « Oh, I have $40,000 in Bitcoin, » you might think about it in a different way than if you had 400,000. Because it’s just about the Bitcoin itself. Think about other things. If I have 0.37 Bitcoin, that’s all that counts.
It’s what I try to do when I’m in the crypto world. Because I’ve been able to get in at high prices, I’ve been able to get in at low prices. As long as I don’t worry about whether I’m getting in at the right time, I don’t really think about it. I just say, « You know what, I’m going to get as much as I can over time. There are a lot of good reasons why this is the best way to do it. For one thing, I’m not putting all of my money in at once and risking a big dip right after every time there’s a dip to maybe put a little more in.
You don’t make money when you sell; you make money when you buy.
That’s another thing I’ve added to my plan. If there’s a big drop like we saw last month, I might raise my investment because I know that it’s at a low point, but that’s when you want to get in. These altcoins, when they’re moving fast and you see a 500% gain over the course of just 2 WEEKS, people get so excited and want to just « FOMO » into it and put a lot of money into it.
But when you should be getting into Bitcoin or altcoins, you should get into them when it’s low, when it goes down. So, if it goes down 30% or 40% in a day, that’s when you start. To make sure you make a lot of money when it does. When it comes to investing, Robert Kiyosaki has this quote, which I think is true for any kind of money you make. You don’t make money when you sell; you make money when you buy.
Money already has too much power over our lives.
When we do cost averaging, we don’t have to worry about selling it at the right time, or getting it at the right time. That’s the main idea. If you buy things over time, you will make money from that. And don’t worry about the swings, either. It’s not going to bother you at all. It will have an effect on you in the short term, but not in the long run.
When it comes to money, many people have a hard time putting it into perspective. Because money has this power over us, it’s so fascinating and important in all of our lives. There are a lot of reasons why it’s so hard to ignore these little spikes and dips.
For example, when it drops 20% or 30%, you get this horrible feeling in your gut that says, « Oh my God, I just lost all this money. » If you don’t sell and keep the money and keep investing on top of it, you haven’t lost that money. Odds are that in 20, 30, or 40 years, you’re going to make a lot of money from that. So that’s what I try to do, and that’s what I do.
In a volatile market, dollar cost averaging is a great way to keep your money safe. It can be the best way to get the most money over time. How to get the most out of your money I think this is the best way people say this about the stock market. But this is true about crypto, too.
It all comes down to how long you keep your investments and how much they grow over time. Please let me know if you liked this article and found it useful. Thank you so much, guys! I’ll be back soon with another article.
Those of you who keep coming back to the site are great. I can’t say thank you enough. Soon, we’ll be back again. I hope to see you again soon! Thank you very much!