Today I have information for you on how to invest in cryptocurrencies that could help to build your wealth.
The strategy I would like to introduce to you today is called DCA where you gradually buy the same coin month after month if you are convinced that it will increase in value in the long run.
So let’s learn more about DCA investing.
DCA Investment or Dollar Cost Averaging.
As mentioned earlier, this strategy is about gradual purchases of the same asset such as stocks, cryptocurrencies, or commodities. This way, investors do not have to worry about when to buy an asset. However, this strategy requires strict discipline and thorough research about the asset you want to invest in because profits want to be made in the long term.
Currently, there are many investment firms that offer DCA investment services by automatically withdrawing money from your deposit account to invest in the selected asset. So we get shares at the average cost price under all market conditions.
Now we can apply the same strategy to cryptocurrencies. We could buy the same coin every month without paying attention to the price and looking only at the long run.
So let’s take a look at some cryptocurrencies that can be bought gradually without needing a large amount of capital.
Bitcoin (BTC) is one of the world’s first digital currencies and has the highest value in the crypto market. It can be used to exchange goods and services without intermediaries.
Ethereum (ETH) is considered the second-generation blockchain. It was developed from Bitcoin and can create smart contracts and decentralized applications.
Cardano (ADA) is a blockchain platform that does everything like ETH but is faster and cheaper.
Stellar (XLM) is a cryptocurrency on the Stellar network. It is designed to support peer-to-peer international transactions for all cryptocurrencies.
Ripple (XRP) is a digital asset designed to serve as a bridge to the currency of financial institutions and is considered a relatively private blockchain.
Binance (BNB), created by Binance, the world’s largest cryptocurrency exchange, can be used to pay fees on the Binance exchange.