Read out of the corner of your eye! – L’Expresso du Coin, the series dedicated to those in a hurry. A quick read, for both beginners and experts, to entertain you over a coffee. small stories, crypto dictionary AND tidings in order to educate themselves while having a good time. Today, we tackle DCA.
Alastor Prudent has always been a punctual person. He always reads an email twice before sending it. He conscientiously sorts through all his receipts and always looks at the instructions for a product before using it. Alastor is also a visionary. He intends to prepare a pension in the sun for his old age. And far from mocking himself, he doesn’t count for government assistance and his so-called retirement savings.
It is all these topics that he discusses so often with his best friend, Gaspard Yeure, as they drink their usual coffee at Krypto Bistrot. And that day, Gaspard is in a bad mood.
– I put all my savings in Bitcoin in November 2021, Gaspard complains in annoyance. Case in point, I find myself at 30% of my bet today. Me who dreamed of buying myself a Tesla. Sincerely, I will never get caught again.
— I warned you, dear Gaspard. But Monsieur always thinks he’s smarter than everyone else. You should have done as I did. pour in €50 in Bitcoin at the end of every month, no more, no less. I don’t deal with charts, I know that over time, the price of Bitcoin goes up, until proven otherwise.
– Oh yes ? Gaspard is surprised.
— And yes, you know that in the early days, bitcoin was worth less than a dollar, right? So obviously I bought like you in November 2021 when BTC was at $69,000. But I’m still buying it today when it’s around 20,000. Just enough to lower my entry price average and be ready when the course will resume its mad flight.
In one corner of the head – DCA
of DCA or Dollar Cost Averaging Is one investment method often advised when it comes to buying stocks or cryptos. Many novice investors land on crypto and decide without preamble to invest all their savings at once. However, this method often leads to failure. Because if then the price starts to fall, it’s hard not to panic.
The idea of DCA is as follows. Give an initial amount to invest, for example €500. then buy at regular intervalssay monthly, with a a small part of this amount. Usually €50. If the price then starts to rise, you’re glad you invested. Of course, you will make less money at that time than if you had invested 500 euros at once. However, you still generated profits. And if, on the contrary, the price falls, then you will also be happy that you still have enough to buy at a lower price next month. This process allows quiet all year round its average entry price in an asset. And above all, it allows you to save your nerves and to protect against FOMOas we explained to you in last week’s Expresso du Coin.
Stay in the Corner!
To start a DCA, for any asset, one essential thing is necessary: BELIEFS. Without it, there is no need to start. First of all, we must try to understand the hidden values behind this mysterious Bitcoin. Of course, it takes time ask about e to educate. To seek to understand why so many people are interested in this famous digital gold. It can’t just be speculation, there has to be a deeper reason, right? Educate individuals about Bitcoin. A not so crazy idea that is starting to gain ground even in American schools.
There are many ways to start an investment. And it is very difficult to avoid mistakes when you are a beginner. Indeed, the psychology of the markets is particularly complicated to understand. One of the recommended methods is precisely that of progressive investmentDCA, so you can build a small nest egg at your own pace this alternative currency called Bitcoin.
Don’t wait any longer to prepare for the future, sign up for Corner Savings and buy Bitcoins on DCA with complete peace of mind (trade link).