My country people I greet una wel wel most of our newbies investor for wey cryptocurrency space still dey find am very comfortable to still dey accumulate for inside the dip season which no make sense to me.
So I just say make I pull up with some addition throughout of mine consigned the DCA benefit.
- Reduce timing risk management for example if you want to invest $500 in bitcoin instead of investing the entire amount at once you fit make your decisions to use DCA and then they remove $50 every week or month it depends on your income sah maybe for 10 month. And then if the market decline shortly after your mindset investment your losses fit limits to $40 or $30 invested in that same month.
- Avoiding emotional like this fear and greed fit help spoil anything and fit lead to impulsive decisions making e fit cause you to invest to much or little or even stop investing altogether, most time I no say e dey paths of human nature say we still get little bit panic inside us which is okay but make we no to allow am take the best side of us market fit fluctuations and can fit to evoke strong emotions, but that why DCA help you to navigate all these fluctuations by accumulation consistently.
- Invest consistently and discipline Firstly when we talk about consistency we need to understand the word consistency in a lay man language e means holding on to something firmly to a standard following a regular pattern, which means investing in a fixed amount weather small or bigger amount regardless of the market downturn, investing consistently and discipline can lead to improved long term returns as you be investing in both high and low market.
Following the DCA strategy and maintaining a disciplined approach investor can navigate the volatility of the cryptocurrency markets and works towards thier long term strategy.
Op you make example way touch my nipple and I wan make we put head together address am. You talk say if the investor gets $500 to use at once say it go better him run am with DCA by investing $50 weekly way means say nah like 10 weeks be that it go take, right?
So what if within that period the investor been wanting use that $500 na when market been dip very well way him for dive all in with that $500 and get much profit when market price rises than doing the $50 each week while market come the rise after that dip way the investor for don use all the $500 take invest use the get profit as market come the rise gradually again.
This DCA approach e get how you go take apply am come even dey at loss more than certain market periods way if you go all in when the market done dip. Nah it's left for the investor to calculate himself and know what decision is best to take at every interval with market price. It gets when DCAing but by bit go be the best option and it gets when diving all in too go be the best too. But it's left for the investor to know these differences.