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DCA: in Bitcoin it has never been so easy to invest with this method
In the cryptocurrency market, the decision to invest entails, in most cases, a prior study of a currency. In this way, it will be possible to determine if profitability as well as its legitimacy; all in order to protect our investment.
However, for many people it is very complicated to carry out a market study to mark the projection of a currency. That is why they turn to more conventional investment methods that do not require as much knowledge.
But, within the ways to invest in Bitcoin, a price that for these dates is above $40k dollars, there is a simple one. Read on to learn how to save long-term with this crypto.
How to invest in Bitcoin?
There is no doubt that investing in any cryptocurrency represents a series of risks, especially the enormous possibility of losing our capital.
Whether you've run a market study, there's a 50-50 chance of success or failure.
However, in the case of Bitcoin, many people consider it as a long-term savings or investment. It is practically due to the fact that its price has remained "stable" in recent years. And that, despite the falls it has suffered recently, it is still as solid as ever.
Especially in Latin America, where inflation and economic crisis plague the vast majority of countries, they have seen an alternative in cryptocurrencies.
But, not having enough resources to make a large BTC purchase, they turn to other methods to save for the future. Because Bitcoin is that, the future.
DCA Method: Trading for Beginners
One of the most used methods by beginners, or simply by those who are not involved in the world of trading, is the DCA.
It is the ideal investment tool for people who just want to earn some extra money, without any effort. That is, for those who do not know when, where or how to start investing in any currency or crypto asset.
Specifically, DCA stands for Dollar Cost Averaging, which represents the easiest way to enter the financial market.
DCA what is it?
It is an investment strategy in which users invest a fixed amount of money, over a period of time. But, with the difference that they will not be influenced by the price of the asset; in this case Bitcoin.
Within the world of trading, the DCA is considered an investment with a very low probability of risk, due to its simplicity.
And it is because the user always invests the same amount, reducing the impact that the price fluctuation of an asset may have.
Especially when a market like cryptocurrencies is considered one of the most volatile, always tied by speculation and fear.
Here it is important to continue buying without taking into account the price of the asset, such as BTC. That is to say, we will remain attached to its stability to, month by month, buy small Satoshi units, thus accumulating a considerable well.
DCA: Advantages of using it as an investment method
This method has a number of benefits that make it one of the most conventional strategies for beginners.
It will always be the right time
One of the main benefits of the method is in the mental field, having a positive influence by reducing the person's fear.
And it is because the vast majority of people tend to enter any market when it is in a downtrend. That is, when prices are plummeting.
This is the case with Bitcoin, and it was seen recently when many people decided to enter after it went down to $33 thousand dollars.
But, in the case of the DCA method, the strategy is different. This is because the important thing is to always invest money consistently, for a short period of time.
However, it goes without saying that if the investor takes advantage of falls in the asset to invest, the final return will be much higher. Therefore, it is not that we will not worry about our funds, since the idea is to keep them in account.
They represent an alternative
If your funds are limited, one of the main alternatives that exist today are cryptocurrencies. Well, its volatile market can make you double your money in just a few days, as long as you enter at the right time.
Especially at the moment, where the current trend is marked by NFTs and games that use blockchain technology to earn money.
Therefore, in the long term, using the DCA method can translate into a way to earn money passively.
That is why, you can dedicate a small part of your source of income to this method and test its veracity on your own. However, any decision you make in favor of doubling your investment will remain entirely your responsibility.
Bitcoin today represents savings for many people
Since its launch back in 2009, this digital currency has come a long way to become the leading cryptocurrency today.
Although not everyone has adopted it, progress has been seen that has increased the usefulness of the currency. One of the main cases is El Salvador. A country that, at the hands of its president, is the first to adopt Bitcoin as legal tender.
It is just a sample of how versatile BTC can be as a means of payment, which would increase its value much more.
Beyond that, though, people see it more as a means to long-term savings. Some even talk about a pension fund that will help support them during the last stage of their life.
This is where it connects with the DCA method, as it is a strategy that seeks to generate long-term passive income. For this reason, it is mainly applied with BTC, since it is the most "stable" cryptocurrency on the market.
Little by little, investing a minimum of money that the trading platform you use allows you, you will build a savings fund for the future. Even more, if you take advantage of the drops in Bitcoin to generate greater profitability.
For Bitcoin, Coinmarketcap reflects this price
At the time of writing this article, the Bitcoin price is set at $43,697.46, where in 24 hours it has suffered a drop of 1.48%.
To see the price in real time, you can check it on the page of Coinmarketcap, one of the main consultants.
