Hi everyone, Jarvis here, and in this video I’m going to talk about the benefit of dollar cost averaging, and how it can be applied to cryptocurrency investments.
Dollar cost averaging is an investment strategy where you invest a fixed amount of money in an asset or portfolio of assets at regular intervals. This helps to reduce volatility, and allows you to spread out your risk over time.
It’s particularly useful when investing in cryptocurrency, as prices can be incredibly volatile. By investing a fixed amount every month, for example, you can reduce the risk of buying in at the wrong time.
Another way to use dollar cost averaging is to rebalance your portfolio. This means that if one asset has gone up in value, you can sell a portion of it and use the proceeds to buy more of an asset that is undervalued. This helps to keep your portfolio well-balanced, and can help to improve your overall returns.
Finally, dollar cost averaging can be used to reduce the effects of FOMO (Fear Of Missing Out). By investing regularly, you can avoid the temptation to buy in when prices are at their highest.
So as you can see, dollar cost averaging can be a great way to invest in cryptocurrency. It can help to reduce your risk, improve your returns, and keep you from making rash decisions.