Crypto is highly cyclic
If you look at any crypto chart that has lasted long enough in the market then you would find that it is highly cyclic in nature.
The cyclic nature of an alt can be a great opportunity
Ideally this would mean an endless opportunity where you and I can buy low and sell high.
Theoretically this may even be possible however when we humans trade we are sucked into a never ending roller coaster of ups and downs.
If you look at the chart of any crypto over time then you would see how the ups and downs fall into a pattern and if you have the right skill you can be in the money. This is an ideal situation however crypto waters are choppy and crypto trading can be extremely stressful and you may end up losing your capital.
What is a good way to invest and grow?
The ideal way to grow would be to first select the crypto of your choice.
Make sure that you do your research and due diligence before picking a crypto project.
In the context of the hive blockchain I would say that the native token Hive and Leo the native token of inleo.io offer an incredible opportunity.
At the time of writing the post one Hive token = $hive and
One Leo token = $LEO
If you look at the performance of hive it has seen a significant correction over the last few days.
Now for a lot of investors there would be a doubt if they start investing into hive right now or wait for further correction.
Though the charts may give some technical information, it may be noted that all altcoins follow a trend set by Bitcoin.
Even a small correction in the BTC prices can cause a major correction in all altcoin charts.
The price of Bitcoin can be affected by the news flow from the Fed and the way the interests are moving.
As has been seen in the past, a war or even a pandemic can influence the price of Bitcoin setting the tone for all the crypto altcoins.
Since most individual investors would find it hard to track and interpret the micro and macro data therefore there has to be a better approach to ride all these uncertainties and yet be profitable for this the DCA or the dollar cost averaging is the way to go.
If we were to set up DCA for hive we would not look and worry about the immediate price of Hive.
Instead a user would set a DCA amount and make the purchases on a regular interval.
For example if a user needs to invest $10 into hive every week then he can buy $10 worth of hive every week
This strategy would help the user follow the project of his choice and follow the long term trend.
DCA works well if a user has a long term horizon.
For the DCA to work a user needs to have patience and believe in the long term vision of the project and the discipline to buy at the set intervals without fail.
DCA is not for you if…
You are too bothered about the frequent price fluctuations.
The DCA strategy would let you ride the current price volatility over long to very long periods of time.
It is also not for you if you cannot maintain a buying discipline.
If you miss the buying dates the DCA would become ineffective and may even fail.
Remember that to enjoy the benefits of crypto when its valuation and prices are at the top would happen if you get in right at the bottom or closer to it.
Since picking the bottom and the top is the tricky part so make DCA your friend and start investing now.
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Posted Using InLeo Alpha
