Kraken’s Latest Survey: Dollar-Cost Averaging Dominates Crypto Investment Strategies

Kraken’s recent survey reveals that 59% of respondents use dollar-cost averaging (DCA) as their primary crypto investment strategy, while 83.53% have employed DCA at least once in their crypto activities.

Understanding Dollar-Cost Averaging

Dollar-cost averaging is an investment approach that involves purchasing a fixed amount of cryptocurrency at regular intervals over time. This strategy promotes a “set it and forget it” mindset, making it a favorable method for accumulating crypto gradually.

Advantages of Dollar-Cost Averaging

According to Kraken’s survey, 46.13% of respondents believe that the main advantage of DCA is its ability to mitigate market volatility. Additionally, 23.95% appreciate DCA for fostering consistent investing habits, while 12% value it for helping them manage emotional reactions to market fluctuations.

“While DCA is generally seen as a way to develop a consistent investment approach and manage emotional reactions to market changes, most crypto investors believe the DCA strategy plays a more important role,” stated Kraken in its survey results.

Alternative Investment Strategies

The second most popular strategy among crypto investors is market timing. This method involves buying or selling crypto based on predictions of future market price movements. Market timing is particularly favored by younger investors, aged 18 to 29, who may find DCA’s gradual wealth accumulation process too slow.

However, the survey also noted that 22.77% of younger investors still consider DCA to be the most beneficial strategy.

Market Monitoring Trends

The survey revealed that 73.69% of respondents spend more time monitoring cryptocurrency markets compared to traditional markets. Interestingly, older investors, aged 45 and above, are more inclined to check crypto markets frequently than traditional ones.

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