First of all, it is essential to understand what DCA acronym stands for and that comes from Dollar-cost averaging which is an investment strategy in which an investor splits up the total amount to be invested across periodic purchases of a target asset in an effort to reduce the impact of volatility on the overall purchase. And above it all, it transpires consistency across an investment period through periodic purchases which ensure an average of the asset price, rather than getting a higher price if you were to buy on the peak.
And as we are in a bear market which I consider will deflate even more, I believe that applying the DCA strategy is at an opportune time as ever. The cryptocurrencies have shown their potential, and some shitcoins inflate along, but now and in the next period the stronger ones and the ones that address real use cases will resist and thrive in the end. It is not an investment that will pay off tomorrow, but one that might shine in a few years. And as these are the times that make the difference for an investor, I have decided as well to follow it up.
So in the next period, I intend to buy these each Monday during my work break (12:00-13:00) certain assets using the DCA strategy. My current options are Bitcoin, Ethereum, and HBD as I want to build up also a good stablecoin portfolio that should alleviate any downfalls over a longer period of time. I might include also some other assets like ThorChain RUNE, but I don't want to expand too much my basket.
This is my next move in the crypto market to use DCA to add some more assets to my portfolio. I wonder what strategies are you using and what assets are you adding to your bags in this bear market. Feel free to jump in with some new things on this or your experience and approach to building in such uncertain times.
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