Crypto Dumping? |Time To Buy?

Here it is.

This strategy is very simple and actually works in other markets too, not just crypto. Here goes. The strategy is called DCA or dollar-cost averaging. There are 2 ways to do this. I am going to outline both ways below and then you can choose from the 2 ways which way is a better fit for you.

Way 1: Continuously buying

Continuously buying is choosing a specific dollar amount to invest each day, week, or month and investing that amount no matter what the price of the asset is. With this strategy, you make money no matter what simply because when you're investing the same amount every week or month over time you gain a lot of the asset along with your average cost being much lower than the all-time highs because you bought in at the highs, the lows and the middle and by simple logic 2/3 of the time you bought in at the middle or low price which offsets the higher buys and brings your average cost lowering thus making you money. An example of this strategy is investing $100 every Saturday at 14:00 (2:00 pm).

Wat 2: Price movement buying

Price movement buying is setting limit buys at different price levels of the asset. An example of this is $100 invested if BTC goes to $40,000 $200 invested if it goes to $38,000, $500 investment if it goes to $35,000. For this strategy, there are different ways to play it, experiment with different ways, and see what works best for you. Some of the variables you can change are, how often you buy (e.g every $500 ) the amount you buy each time the price drops(e.g $50 at first drop, when it drops again $150). This strategy makes you money no matter what as all assets have price fluctuations so you can set your levels accordingly. For example, if the market is hitting all-time highs you might buy do the exact opposite of what we did before and set your price levels like this so you are still in the market. (BTC goes to $80,000 ill buy 100$, Btc goes to $90,000 ill buy $50). This way you can make money while minimizing your risk.

Now let's look at which strategies are best for the different market scenarios.

Strategy one is your jack off all trades strategy, it will make you money no matter if the market is doing great or terrible. Strategy two in my opinion is great for when the market is on a downtrend. Strategy two can also be reversed so that you are selling different amounts of your holdings as the price goes up. Reversing strategy 2 is a great way to take profits during a bull market.

Check out my full article on taking profits here

There you have it, 2 ways to enter the market and win no matter what. I hope you found this article helpful and enjoyed reading it, if you did be sure to follow me and give the article a like as doing so helps me grow as a writer and teach more people about the future: Crypto and Blockchain

Cheers

Important To Read

Is it very important to always do your own research before making any type of investment, this is not financial advice. This article is based on how I invest and is for entertainment purposes only.

Tip:

Their happen to be DCA bots that can automate this process for you. Some exchanges also have a reoccurring buy option which can be very useful. When using DCA bots I prefer to use the 3 Commas platform. They are a strong and secure platform that connects to exchanges using an API. It is simple and easy to use. (my opnion)