One of the simplest and most effective investment strategies is known as DCA - Dollar-Cost Averaging 🛍
The idea is simply that you invest a fixed amount on a regular basis, regardless of the market price. That means instead of trying to enter the market all at once with a large amount, you invest a fixed amount every month, every week or every day.
for example,
You decided that your investment capital in Bitcoin is 10,000 riyals. Instead of buying it all at once, let’s say at a price of 60,000 dollars, you decide that every Saturday you will buy 2,500 riyals worth of it.
The first week I bought, the price of Bitcoin was $64,000.
Second week at $62,300
3rd week $58,600
4th week $53,000
Your final purchase price will be a midpoint between the low and high prices. Based on the previous example, your purchase price was $59,475 instead of $64,000 the first time you bought Bitcoin.
Benefits of ✔️DCA
1. Reduce risk: Instead of risking investing a large amount at one time, you can spread your investment over long periods.
2. Dealing with market fluctuations: Instead of trying to time the best time to buy from the market, buy constantly regardless of the price.
3. Simplify investment: You don't need to constantly monitor the market or get nervous about big price changes.
This is an excellent method especially for beginners who want to enter the market without having to worry about big fluctuations. 🕯
