Category: 6. Stacking Sats: DCA and hodling

Though cost averaging is intended to be simple, there are more advanced strategies you can use, once you become more comfortable with the process. These focus on adjusting the amount of your regular investment dependent on market conditions. As already mentioned above, cost averaging doesn’t perform best during a rising market, but how do you… Continue reading Advanced DCA strategies 

Doesn’t eliminate risk – Though DCA is a good strategy to mitigate volatility in buying cryptocurrency, it doesn’t remove risk. You can employ DCA and lose money because prices aren’t guaranteed to keep going up. The DCA examples provided are for Bitcoin, which has a longer history and clearer value proposition that most other cryptos. Using… Continue reading What are downsides to DCA?

Reduced risk of buying the top – One of the big benefits of DCA is it removes the pressure and uncertainty of when to invest a lump sum, and the fear of buying at the top of the market.  Crypto has proven to be a great long term investment, but is extremely volatile, so a DCA… Continue reading Summarising the Benefits of DCA

Cost averaging, also known as dollar cost averaging, or DCA for short, is a way to gain exposure to crypto that mitigates the risk of buying at the top of the market, by making regular, small and consistent investments over time,  Imagine you intend to invest $1,000 of BTC, but are uncomfortable about when to… Continue reading Stacking Sats – The Concept of Cost Averaging

Passive Ownership is quite a mouthful, luckily the Bitcoin community has adopted a simpler and much more relevant equivalent – hodling. It has become one of Bitcoin’s defining memes. You can read the story of hodl in the Learn Crypto blog and how it became the crypto community’s defining meme. Hardcore hodlers wear this title as a… Continue reading What it means to ‘hodl’ and ‘cost average’

Cryptocurrency is a new type of internet money and a popular form of investment. Its qualities as a store of value often see it compared to gold, with the obvious difference that it is entirely digital.  We’ve dedicated an entire article to explaining how a cryptocurrency like Bitcoin can have no physical properties, yet work as… Continue reading Stacking Sats: DCA and hodling

What you’ll learn Why crypto prices are volatile What it means to ‘hodl’ How to cost average when buying cryptocurrency Advanced cost averaging strategies