DCA in Cryptocurrencies: My personal guide to investing without going crazy

Let's get to the point! I will talk about the famous Dollar Cost Averaging (DCA) in crypto, that technique that has saved me from many headaches when the market seems like a roller coaster.

What Really Matters about DCA

DCA is basically investing fixed amounts at regular intervals, regardless of whether the price is sky-high or rock-bottom. Instead of obsessing over finding "the perfect moment" ( that never exists ), I simply buy every week or month and that's it.

Why does it work for me? Because:

• I stop stressing myself out trying to guess the market movements.
• I avoid putting all my money in at once when the market is at its highs.
• I save myself from that horrible feeling of "what if I had bought yesterday?"

How do I apply DCA in cryptocurrencies?

The math is simple: Average Price = (Total money invested) / (Total quantity acquired)

What I really like about DCA is that:

1. Reduce my anxiety: When Bitcoin drops by 15% in a day, I no longer panic because I know I'm just buying cheaper this week.

2. It takes pressure off me: With DCA I don't need to be glued to the charts 24/7, something that I personally consider a waste of time.

3. It is accessible: I can start with small amounts, I don't need to be rich to apply it.

4. Stop my impulses: I no longer make those emotional purchases when everything goes up ( that usually go wrong ).

Who is it really useful for?

The DCA seems perfect for people like me, who have jobs, social lives, and don't want to spend all day analyzing charts. It's a "set it and forget it" approach that works whether you're a beginner or have been at this for years.

Note, it is not magical nor guarantees profits, but at least it lets me sleep peacefully at night.

How to automate all of this

Modern platforms allow you to set up automatic purchases:

Recurring purchases

You can schedule weekly or monthly purchases using your card. Choose your favorite crypto, how much you want to spend, and how often. It's like putting it on autopilot.

Auto-investment

Similar to the previous one, but with more options. You can choose from various cryptos and create a personalized plan. I use it to build my diversified portfolio without having to do anything manually.

Performance Products

Once you have accumulated crypto with DCA, you can put it to earn interest:

• Flexible options: You earn a small interest but can withdraw whenever you want.
• Locked options: Better rates but your money is tied up for a while.

DCA trading bots

Although they have "DCA" in the name, they are somewhat different. These bots adjust the size of purchases according to the current price, buying more when it goes down. They are interesting but are no longer the pure DCA that I like for its simplicity.

My sincere opinion

DCA is not perfect. In prolonged bull markets, you would probably earn more by investing everything at once. But for me, mental peace is priceless.

Platforms that offer automated investment tools have made this extremely easy, although it bothers me that some charge quite high fees for this service.

Remember that the crypto market is still extremely volatile and no strategy fully protects you. What you invest can disappear, so never put in money that you cannot afford to lose.

And of course, all of this is my personal experience, not financial advice. Everyone has their own different circumstances and goals.