Are you looking for a low-risk investment strategy? One that lets you ease into a Crypto Asset? Then this article’s for you. In it, you’ll discover that power of dollar cost averaging BitCoin. A technique that’s great for long-term investors.

Why?

Because it eliminates the problem of trying to “time the markets.”

For many investors, in both Crypto Assets and traditional stocks, there’s one lingering fear. The idea that you’ll invest all your money right before a major market collapse.

Dollar cost averaging removes this worry by letting you “diversify across time.” A technique many high level investors swear by.

Let’s take a deeper look.

How Does This Work?

“Far more money has been lost by investors preparing for corrections, or trying to anticipate corrections, than has been lost in corrections themselves.”

– Peter Lynch

Many investors worry that they’re getting into a market at the all-time high. As such, they refuse to do anything until prices “settle down.”

You’ve seen this with friends or family who heard about BitCoin when it was $300 or $500, then did nothing and missed out on incredible gains. Their inaction forced them to miss out on an incredible opportunity.

Likewise, you probably know someone who decided to go “all in” on BitCoin at its peak.

In this case, they’re down a significant amount of money.

Dollar cost averaging lets you avoid both problems. Instead of going “all in,” you’re investing an equal amount of money at fixed intervals.

In other words, you’re spending the same amount of money each week / month / quarter to buy assets.

Dollar cost averaging BitCoin might look like this:

• Buying $250 each month.
• Investing $100 a week, every week.
• Purchasing $10 amounts on a daily basis for the entire year.

The amount and time frequency is up to you. But, you need to stay consistent. These means you’re sticking to your guidelines and making those investments on a regular basis.

It’s the key to making this whole system work.

Allow me to explain.

Why Is Dollar Cost Averaging BitCoin So Effective?

(Here’s Your Investment Rate Vs BitCoin’s Price)

The Crypto market is incredibly volatile right now. Prices are swinging around wildly. From the $9,000 – $10,000 range, all the way down to under $6,000.

This is a good thing, if you’re dollar cost averaging.

Since this strategy involves buying assets at a fixed dollar amount, you’re able to purchase more BitCoin whenever the price falls.

Here’s an example:

Suppose you buy $400 worth of BitCoin when it’s worth $9,000 per coin. The price falls that afternoon, you don’t buy more, a month later the price reaches $9,000 again. You sell your assets (fearing another dip) and just break even.

If anything, you probably lose a little money due to transaction costs and exchange fees.

Now, let’s imagine the same scenario. Except, this time you’re dollar cost averaging. And, you’re buying $100 worth of BitCoin each week.

First week: BitCoin is worth $9,000 each, you buy $100 worth.

Second week: BitCoin is $8,000 each, you buy $100 worth.

Third week: BitCoin is worth $7,500 each, you buy $100 worth.

Fourth week: BitCoin rockets to $8,700 each, you buy $100 worth. That afternoon it reaches $9,000 again, and you sell all your assets.

In this example, you’ve actually made a profit.

The less BitCoin costs, the more your $100 will buy. Once the market stabilizes, you’ve got a larger chunk of Crypto than someone who invested all at once.

It’s a safe strategy for buying Crypto Currencies in a volatile market, and one which transforms instability into profit.

Closing Thoughts

In conclusion, dollar cost averaging BitCoin is a good, low-risk investment strategy.

By making regular, “clockwork,” deposits, you remove any threat of making an (incorrect) emotional decision. Instead, these frequent contributions allow you to make money even if BitCoin’s value never exceeds your highest purchase point.

As long as the market only recovers to where you started (or somewhere close to that), you’ll still turn a profit.

P.S. Looking to start dollar cost averaging BitCoin? Then try try CoinBase. This is the world’s most trusted Crypto exchange, and you’ll get a free $10 bonus when you sign up through this link.