Kraken Survey: 59% of Crypto Investors Say DCA Is the Best Strategy
Date: 2024-10-10 Author: Henry Casey Categories: BUSINESS
A study conducted among 1,109 investors found that 59% prefer DCA when buying cryptocurrency. This method involves regularly purchasing a fixed amount of an asset over a long period of time. Investors can thus automate the process, avoiding emotional decisions and gradually increasing their investments.
Almost half of the respondents (46.13%) noted that the main benefit of DCA is protection from market volatility. Another 23.95% appreciate this strategy because it helps develop discipline in investing by developing regular habits. About 12% emphasized that DCA allows you to remove emotions from the investing process.
“While DCA helps maintain a regular approach and avoid emotional decisions, most crypto investors find this strategy more valuable,” Kraken’s survey results note.
Another popular strategy among investors is “timing” — buying or selling cryptocurrency based on predictions of future price movements. This method appears to be especially popular among younger investors aged 18 to 29, who are less likely to use DCA due to their slow accumulation of capital. However, 22.77% of young investors still find DCA useful.
It also turned out that 73.69% of survey participants spend more time analyzing the cryptocurrency market than traditional financial instruments. Moreover, older investors, over 45, are more likely to check the cryptocurrency market than traditional markets.
