I routinely see people talking about how DCA is the "right way" and is the core strategy everyone should be using. Having been an investor (and no, not just in crypto), and worked in finance for ~10 years, I hope the following can be of use to the new people in crypto:
1.DCA *is a good strategy* typically only for broad, diversified, passive investments. For example, in a Total Market Index instrument, or a gov bond package etc.
2.DCA *can be a good strategy* for assets with strong fundamentals. You could theoretically make this case for BTC and ETH (and even that's a stretch). But vast majority of crypto projects do not fall in this category.
3.DCA is *not a good strategy* for any assets that are highly volatile and you are expecting a big price pump on to realize your target gains. This is where vast majority of crypto projects (and crypto investors) fit in. It doesn't matter how much you DCA projects that have a real risk of going to zero, you are essentially throwing good money after the bad.
4.DCA is a recommended strategy for dividend bearing investments (where you are getting a solid APY that offsets opportunity cost etc). This allows you to over time build up a strong yield cashflow independent of market fluctuations.
$Bitcoin (BTC.CC)$ $Ethereum (ETH.CC)$ $Dogecoin (DOGE.CC)$ $Coinbase (COIN.US)$ $Robinhood (HOOD.US)$ $ARK Innovation ETF (ARKK.US)$
gas 1126 : May not be the most optimal thing ever, but it's easy and emotionless which makes it a solid plan.
Sg-Jin : Haha it’s not often we get black swan events. This perpetual ww3 fear mongering and EU energy crisis is good to DCA if you have a long term horizon view in mind :) 10 years for example for btc. Understand the halving cycles.
People who dca with the holding power until market recovery will be fine. Especially with an asset that can’t be artificially inflated via money printing or issuance of additional stonk.
ahhh_shicha__yabicha : Bitcoin and Ether will soon dominate the crypto market like Apple and Microsoft. All of the other cryptos are nothing but speculation trash.
ahhh_shicha__yabicha : simply ask Elon how that Dodge coin is working out for him
MACKGforEver OP gas 1126 : Debatable
MACKGforEver OP ahhh_shicha__yabicha : LOL
MACKGforEver OP Sg-Jin : make sence