Bitcoin dollar cost averaging is your best bet in the bear market

Few people expected that the crypto market would already enter a bear market at the end of last year, and that the bitcoin price would already have fallen by more than 70% a year later. Unfortunately, that’s exactly what happened. The effect of falling prices on investor attitudes is enormous. Many investors are now staying away from the market, but this is not necessarily necessary. Here’s what you might be able to do better.

Buy Bitcoin slowly

Many people will have lost money trying to time the market. But that’s incredibly hard and the volatile crypto market will not always help with this. Not everyone can handle the huge price movements that we know from cryptocurrencies. If your investment drops by 50%, 80% or even more, it can be nauseating.

Therefore dollar-cost averaging (DCA) can be a solution. With this strategy you simply buy a certain amount every week or every month, so that your entry price is the average of all these entry times. This way you save yourself a lot of headaches, and if you are lucky you will perform even better than if you had started trading more actively.

Coinmerce

A handy platform where dollar-cost averages can be used is the Dutch Coinmerce. Through the Coinmerce Earn feature, not only can you receive an additional dividend on your cryptos, you can your also spread buy orders with it. This can be done automatically, so you completely remove your worries.

Dollar-cost averages not just for crypto

Of course, this also applies to assets other than bitcoin (BTC). You can apply it to any altcoin imaginable, new and old, big and small. This can be especially useful for tokens that are worth very little. Often, the smaller the market value, the more volatile the asset can be. If you get in gradually, you can save yourself a lot of pain.

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This also applies outside the cryptocurrency market. While volatility is the crypto market’s middle name, that doesn’t mean other assets are completely risk-free. On the contrary, take a look at Amazon or Facebook, for example. These are companies that last summer as one of the few had a huge market value of more than 1 trillion (1,000 billion). But in the meantime they have fallen by 50% and 70% respectively.

Obviously this is not for everyone, some people look for volatility because it offers opportunities. But if you buy gradually, it won’t hurt that much – whether it’s bitcoin, altcoins, or completely different assets.

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