Kraken’s latest research reveals that 59% of respondents use dollar-cost averaging as their primary crypto investment strategy, and 83.53% use DCA at least once in their crypto activities It has become.
Cryptocurrency exchange Kraken conducted a survey of 1,109 crypto investors and found that the majority of them choose dollar-cost averaging when purchasing cryptocurrencies. As many as 59% of investors use DCA as their primary cryptocurrency investment strategy.
Dollar-cost averaging is an investment strategy that involves purchasing a fixed amount of cryptocurrency at regular intervals over a period of time. This gives investors a “set it and forget it” type of mindset and is seen as an advantageous way to accumulate crypto assets over the long term.
Approximately 46.13% of Kraken respondents said that the biggest benefit of using a DCA strategy is how protected they are from market volatility. Meanwhile, 23.95% admitted that they like using DCA because it helps them develop consistent investment habits.
Furthermore, 12% of respondents believe that using DCA takes emotions out of the equation.
“While DCA is generally seen as a way to develop a consistent investment approach and manage emotional reactions to market changes, most crypto investors believe that DCA strategies play a more important role. “There are,” Kraken said in its findings.
The second most popular strategy used by crypto investors is to time the market and adjust. Market timing is an investment strategy that buys and sells cryptocurrencies based on future market price predictions for the asset.
This strategy is especially popular among young crypto investors between the ages of 18 and 29 who are new to using DCA in their investment strategies. This may be due to the very slow process of accumulating wealth that DCA provides.
However, the survey also found that 22.77% of young investors believe DCA is the most profitable strategy.
Furthermore, 73.69% of respondents admitted that they spend more time checking the crypto market than the traditional market. According to a study by Kraken, older investors over the age of 45 tend to check the crypto market more frequently than traditional investors.
