Investing without taking risks: dream or reality?
Taking an interest in the stock market is one thing, taking the plunge by investing is another.
While it may be tempting to make this desire a reality, fully understanding and mastering the workings of trading is not easy.
We do not improvise trader on a market, especially on that of crypto-currency.
Between the operation of this singular market, its many subtleties and the underlying technologies, being comfortable with these skills requires learning.
To be effective and profitable in this market, you have to be diligent and present continuously.
The idea being to be able to be reactive in order to seize the best investment opportunities.
However, this approach is extremely time-consuming, and the chances of huge success are not so frequent.
Alternatives are thus possible in order to invest taking less risk and less time.
The Dollar Cost Average is one of those solutions to avoid falling into the trap of the emotional amateur investor.
The strategy is based on an investment with stable profits.
Dollar Cost Averaging: what does it consist of?
While they tend to be very successful, cryptocurrencies experience prices that can be very volatile.
This leads to uncertainty, a fear of missing out on a great opportunity or even losing money, which can hold back many future investors.
In a utopian world, the principle would be: buy low to sell higher.
A reality that is particularly complex to achieve.
So, more and more investors are moving towards an average dollar cost strategy, more commonly known as the DCA.
This alternative aspires to reduce the impact of this market volatility, and therefore to regularly buy smaller amounts of assets over a given period.
For example, we choose to invest €100 in bitcoins each month for a year, rather than €2,000 all at once.
This spread over several months or several years can evolve and be adjusted according to the investor's objectives.
While DCA is certainly associated with Bitcoin, it is not exclusive to cryptocurrency.
This strategy has been used for years to offset stock market volatility.
DCA: the current safest strategy for investing in Litebit cryptocurrency
The advantages of planned investment
The DCA thus tends to invest an identical amount at regular intervals, without having its eyes constantly fixed on the prices.
A concept that may surprise as buying tokens blindly can expose us to a high price and a price that goes down immediately afterwards.
But with the DCA, we take advantage of a distribution of the cost of purchases over time, and therefore reduce the overall impact of a sudden drop in prices.
And in the event of an effective drop, investors contribute to buying with a possibility of a return as soon as the price rises.
A virtuous circle which tends to make this programmed investment a means of smoothing the rises and falls of the market.
In the end, the chances of profitability are greater than through the purchase of single assets.
The DCA is in fact an excellent way to start your adventure in cryptocurrency.
The investor enters the market safely, balances his portfolio and the risks of price movements and takes advantage of long-term price appreciation.
For greater simplicity, more and more platforms dedicated to cryptocurrency are entering this market.
The objective is to make investment ever more accessible thanks to Bitcoin or DCA.
Like a broker, the Litebit platform offers a large number of cryptocurrencies by exposing real-time stock price trends.
With customer service always available, Litebit makes it more intuitive to use its platform, and by extension to invest in cryptocurrency.
Very aware of the advantages of the DCA, Litebit democratizes it and gives the best advice for investing in complete safety.
With LiteBit, it is possible until March 30, 2022, to take advantage of a €20 credit after registration and account verification.
