Dollar Cost Averaging
As cryptocurrency grabs the attention of many like minded individuals seeking a pot of gold at the end of the rainbow, there will never be enough information and tools available to help the community. Whether you are a scalper or a holder that continues to buy dips, dollar cost averaging is a basic ingredient for successful trades, long term and short term.
What is dollar cost averaging and why is it important.
In short, dollar cost averaging is a tool or method used by investors and other forms of business to lower the initial overall cost of their purchase. For example if you buy 10 bitcoin at $1,000 it would cost you $10,000; Now lets say the price of bitcoin dipped to $500 and you bought 10 more bitcoin costing you $5,000. So now you have 20 bitcoin and spent $15,000 making the average cost per each bitcoin just $750.
Using dollar cost averaging can help you exit a hold at a lower cost and with profit, thus saving you time and possibly money on smaller price pumps.
Overall this is a no brainer and i'm sure the "pros" are reading this and saying "duh" but with cryptocurrency sweeping the globe it attracts not only the savvy but the vulnerable as well and the more information we all contribute to this amazing community, the better off we all are.
To conclude, I attached a Dollar Cost Average calculator I made to save everyone time and money. If you're trading on Binance this tool will include the Binance fees into the average. A simple but effective tool. Check it out and play with it. I hope you all enjoy!
Stay Sharp, Stay Invested,
Slay Trade
Cool Post. Since you got the bitcoin tag do you have a prediction for Bitcoin over the next few days? Also followed you for future posts :)
Not financial advice We have good resistance below 10k if we can hold. I believe we are entering a bullish momentum short term. We still have some barriers to get through but with strong positive signals. Time will tell.
Come and visit my blog, if you wouldn't mind. I am interested in forecasting and predicting bitcoin for every month using math. ☺️
I am trying to put as much in every or month as I can and what I am buying I will be holding for the next 3-5 years.. a much better return then spending my money on beers or keeping it in the bank.
Right on! Keep at it!