Kraken: Cryptocurrency investors prefer to use dollar-cost averaging for investment
ChainCatcher news, according to Cointelegraph, a survey by the cryptocurrency exchange Kraken found that crypto investors mostly prefer the dollar-cost averaging (DCA) method when entering the market. According to a survey of 1,109 crypto investors released by Kraken on October 7, about 83.5% of investors have used the DCA strategy, and 59% of investors still consider it their primary method for purchasing cryptocurrencies.
Dollar-cost averaging involves regularly purchasing assets, such as once a month, regardless of the price. Kraken's researchers claim that this can "reduce the impact of short-term price fluctuations and eliminate emotions that may affect judgment." Over 46% of respondents indicated that the biggest advantage of DCA is hedging against market volatility, while about one-third of respondents believe it supports consistent investment habits. Approximately 12% of respondents stated that DCA eliminates emotions in trading. The survey found that high-income investors with incomes over $100,000 are more likely to use DCA, while low-income investors with incomes below $100,000 are more likely to attempt to time the market.