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Here’s the secret method to profit from the Bitcoin crash

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The periodic investment is known as Dollar cost averaging. (DCA) or dollar-cost averaging. This has a number of advantages, the most important of which, in my opinion, is the reduction of stress from falling markets.. Without stress, objectivity is maintained and the right decisions are made.

Avoiding active trading

Traders who are driven by their emotions, such as fear of missing an opportunity or seeing the value of their portfolio decline, are more likely to make mistakes when trading cryptocurrencies.

The DCA Method is a systematic trading approach that alleviates much of the anxiety associated with investing in a volatile asset such as Bitcoin.

It is the best technique for implementing a long-term investment plan in any market. Bitcoin is no exception.

Most people would make more money if they bought a bitcoin at regular intervals (daily, weekly or monthly) than if they tried to time every day to look for the best entries.

Using the DCA method for Bitcoin accomplishes three goals.

  • 1) To obtain the best average price.
  • 2) Save time
  • 3) Reduce the stress of a falling market.

The “right” average purchase price

According to Fool.com, an investor would have spent $14,610 if he had bought $10 worth of Bitcoins every day for the past four years (or $300 a month). And his investment is currently worth about $61,000.

Someone could have made more profit if they had bought the March 2020 drop or the April 2021 drop. But it’s hard to predict the end of bitcoin’s declines.. The tweet below illustrates it well :).

Few traders have the foresight to anticipate trend changes.

Read also. Ethereum news: Another delay in the transition to proof-of-stake?

By using the method of periodic purchases with a fixed amount, you are tilting the statistics in your favor and riding Bitcoin’s long-term trend.

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