The ups and downs of the crypto markets packed a lot of action into the last 7 days. It wasn’t just crypto that experienced volatility, similar moves could be observed in traditional markets with major indexes like the S&P 500 which also ended the week trading lower than at the start.
On Crypto Twitter, there were many tweets about buying the dip, but the acronym “DCA” was also trending at week’s end.
DCA - Dollar-Cost Averaging is a tactic to invest by dividing a big sum into smaller amounts and investing them in frequent intervals. This minimises the effect of timing and psychology on your investments. It also might prevent investing a big sum at the wrong time.
During a dip, you could use the chance to increase your holdings in a certain asset, thereby decreasing your entry price and bringing the break-even point closer. Please note, this should only be used after you’re sure about investing in your chosen asset.
Dollar-Cost Averaging is often used for known assets, but you can also employ this tactic for emerging assets as well. We just added SENT to the exchange, and you can win this innovative token by joining our our $20,000 SENT Trading Competition.