Hey everyone! Recently, the industry has been turbulent. How are you all doing? I hope you’re not all secretly buying gold for safety, haha!
Although the crypto space has a few more black swan events than other industries, if we look at the overall market trend, even if it hasn't reached its peak, it’s still hovering at a high level! Especially for a few stablecoins, their prices have increased significantly compared to last year and the year before.
Why are we talking about this? Because today we’re going to discuss an investment method that benefits from this "long-term upward" trend — the most laid-back way to make money in the crypto space: Dollar-Cost Averaging (DCA)! It focuses on "time as a companion, guaranteed profits without worry," allowing time to help you turn small amounts of money into large sums.
First, let’s understand what “Dollar-Cost Averaging” is?
In simple terms, it means "investing a fixed amount of money to buy coins every month/week, regardless of price fluctuations." For example, if you invest 500 USDT in BTC every month, it doesn’t matter if the price is $40,000 or $30,000; you buy at the set time. The core logic is diversifying risk and averaging costs through market fluctuations.
In plain language: spend a little extra money each month to buy coins, and a few years later, the "explosive growth" of cryptocurrencies can surprise you. Even if the market crashes, since you’re investing small amounts each time, your losses won’t be significant; small monthly investments won’t affect your normal life, making it a "lying down and making money" strategy!
But the prerequisite is that the coins you invest in must be "long-term bullish" characters, like BTC. Let me show you some data: If you invest 100 USDT in BTC weekly, what returns can time give you?
After 6 months → Total assets 2658.49 USDT (profit 58.49 USDT)
After 1 year → Total assets 6035.90 USDT (profit 835.90 USDT)
After 3 years → Total assets 42043.83 USDT (profit 26443.83 USDT)
This is the magic of DCA + compound interest! Compound interest is the most reliable "wealth magic," and time is a good friend for retail investors! If you think the data isn’t intuitive enough, take a look at this popular chart from when IP17 was released; this is why everyone is flocking to learn about DCA.
So the essence of DCA is: use a little risk to exchange for stable long-term returns. As long as the coin price is bullish in the long run, there’s no more worry-free way to invest than DCA — after all, not everyone can afford to go all-in on spot purchases, haha!
Understanding the “temperament” of DCA
It has several characteristics:
Fixed investment time: Invest once a week, every two weeks, or every month to build a habit.
Fixed investment amount: The amount invested each time remains the same, regardless of price fluctuations.
Diversified risk: Spread your investments over different time points to avoid the awkwardness of "going all-in at the peak."
The advantages are also clear:
Averaging costs: Buy less when prices are high and more when prices are low, resulting in a lower average holding cost over time.
Diversified risk: Unlike a one-time large investment, which can be disastrous if you buy at a high point, DCA breaks the risk into "smaller portions."
But the disadvantages must also be acknowledged: If the coins you invest in continue to decline for years or even get delisted (like some altcoins), you might get "stuck," making it hard to decide whether to invest or not, and your mindset can easily break. So be cautious when selecting coins; the crypto space has risks, and investment requires caution!
Advanced Play: AiCoin’s “All-Coin DCA” feature makes DCA smarter
Speaking of this, let me recommend an amazing tool — AiCoin’s All-Coin DCA!
DCA stands for "Dollar-Cost Averaging," which simply means automated batch buying at lower prices, avoiding the risk of buying all at a high point. For example: Investor A has 6000 USDT. If they directly buy BTC at $40,000 with all their funds, they bear the risk of losing if the price drops.
But with the DCA strategy robot, if you set it to "buy more once it drops by 1%, up to 5 times, investing 1000 USDT each time," the final: BTC DCA average price = (40000+39600+39204+38812+38424+38040)/6=39013 USDT, which means you get an additional 0.0038 BTC compared to a one-time purchase, and the average price is nearly $1000 lower! The entire process is executed automatically by the program, so you don’t have to watch the market anxiously.
In simple terms, DCA is "buying only, not selling," while DCA with automation allows for "buying and taking profits," making it an upgraded version of DCA! If you want to learn more about how to use it, check this out.
The AI robot helps you operate, making it a "hands-free money-making" tool! Although it may not yield huge profits in the short term, in the long run, who hasn’t regretted not buying BTC ten years ago, haha!
Additionally, you can check the "BTC-ahr999" DCA index in AiCoin, located in "Market → Index → Search," making it easy for everyone to find the right time to invest.
Finally, let me share two more “DCA treasures” with you
Besides AiCoin, our familiar OKX is also iterating on DCA products. If you’re interested, you can click this link to take a look: https://jump.do/zh-Hans/xlink?checkProxy=true&proxyId=2. Registering through the link will also give you a permanent 20% rebate on fees!
If you want to understand the crypto space from scratch, the "Beginner Academy" on the OKX official website covers everything in detail, so beginners can go catch up!
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