Crypto Investors Prefer Dollar-Cost Averaging (DCA) Strategy, Kraken Survey Finds
Ruholamin Haqshanas is a contributing crypto writer for CryptoNews. He is a crypto and finance journalist with over four years of experience. Ruholamin has been featured in several high-profile crypto...
A recent survey by the cryptocurrency exchange Kraken has revealed that most crypto investors favor the dollar-cost averaging (DCA) approach when purchasing digital assets.
Conducted with 1,109 respondents, the survey, published on October 7, revealed that 83.5% of investors have used DCA, with 59% still employing it as their primary investment method.
DCA is a strategy where investors purchase a fixed dollar amount of a cryptocurrency at regular intervals, regardless of price fluctuations.
According to Kraken’s research, this approach helps minimize the effects of short-term price swings and mitigates emotional decision-making, a significant factor in the volatile world of cryptocurrency.
The survey showed that 46% of respondents view the primary advantage of DCA as its ability to hedge against market volatility.
About one-third of participants valued DCA for fostering consistent investment habits, while 12% highlighted its role in reducing emotional influence on trading decisions.
The appeal of DCA varies with income levels.
For investors earning less than $50,000 annually, the main benefit was the encouragement of disciplined investment habits.
In contrast, those earning above $50,000, especially in the $175,000 to $199,000 range, prioritized DCA’s ability to reduce the impact of market volatility.
Nearly 70% of investors in this income bracket considered this the strategy’s most significant advantage.
Despite the widespread adoption of DCA, only about 8% of investors maintained this approach during periods of market losses.
The
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