A Kraken survey shows nearly 60% of crypto investors use dollar-cost averaging (DCA) as their primary strategy to minimize volatility and maintain consistent investments.
A new survey by Kraken reveals that nearly 60% of crypto investors favor dollar-cost averaging (DCA) as their main investment strategy. The study highlights how DCA helps hedge against market volatility, maintain consistent investment habits, and remove emotional decision-making.
Key Points:
DCA Dominance: Almost 60% of the surveyed crypto investors use dollar-cost averaging as their primary strategy.
Volatility Hedge: 46% of respondents said DCA helps manage market volatility.
Income Influence: Investors earning over $50,000 prioritize DCA for reducing volatility, while lower-income earners focus on consistent habits.
Age Factors: Younger investors prefer riskier strategies like market timing, while older investors check crypto markets more frequently.
Confidence and Strategy: Higher-income investors are more confident in sticking to their DCA strategy during market fluctuations.
Kraken's survey suggests that despite the inherent risks and volatility in crypto markets, dollar-cost averaging is the preferred strategy for most investors, helping them navigate uncertainty while maintaining consistent habits. As the crypto market evolves, DCA continues to offer a method to reduce emotional trading and mitigate volatility.
Source: Cointelegraph
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