Dollar Cost Averaging
You've probably heard of the term 'Dollar Cost Averaging' right?
But do you know what it means, or how powerful a strategy it can be?
At the DBM Academy, we get really worried for the people who buy into crypto just because someone like Elon Musk tweets about it.
They buy based on FOMO (fear of missing out) and then when the price crashes - what happens is that they sell it all again - and call crypto a scam for the rest of eternity...
So...if you're new to the world of crypto this method is an easy and safe way to build your assets.
The Dollar Cost Averaging (DCA) method of purchasing involves buying a set value of a cryptocurrency at regularly scheduled intervals.
It could be once a week, once a month or every day.
This method contrasts quite differently to throwing all your funds in at once and waiting impatiently for instant profits.
An example of DCA buying would be to purchase $10 in bitcoin per week, for a three-year or longer period of time.
Buying in this manner is considerably less of a strain on your emotions and financially it's far less risky as well.
The scheduled intervals of buying take place no matter what the cost of bitcoin (BTC) or whatever the cryptocurrency in question costs at that moment in time.
Then if you aggregate the number of purchases per week or per month, and the standard price of the purchases over the three-year period, the investment cost will be measured as a mean average.
Much better than reacting in a panic when all the sheeple start telling you to "Buy! Buy! Buy!" because the value is on the rise.
And just remember this - even though Bitcoin, for example, has been thru a flat few months, it's still the best-performing asset bar none, over the last decade.
Always seek education. After all, knowledge is power...!
To that end, I am hosting a DBM Academy Blockchain Basics Workshop each Wednesday at 11am UTC.
Entry-level workshop including tips for asset security.
What is blockchain, where to get crypto safely and then what to do with it after that.
Take the first steps to becoming YOUR OWN BANK...!
Also, there will be plenty of time at the end for Q & A.
Get access to ALL the workshops and more by registering with the DBM Academy HERE.
See you Wednesday!