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Kriptomat has made it easier than ever to implement the top-rated strategy for turning bear market losses into big gains.
The updated Kriptomat Recurring Buy tool minimizes the risks of market volatility and sets up Kriptomat customers for potential profits when markets rebound.
And itâs so simple, it can be set up in minutes.
Dollar cost averaging at Kriptomat
Kriptomat Recurring Buy is based on an investing strategy called dollar cost averaging or DCA. The tool allows customers to define the cryptocurrency they want to purchase, how much, and how often. Kriptomat makes the scheduled purchases reliably and automatically, charging each purchase to the customerâs Visa, Mastercard, or cash account.
DCA is generating renewed interest from financial advisors and the academic community during the current financial downturn.
For example, The Motley Foolâs Stefon Walters identified âThree Things the Worldâs Smartest Investors Do in Every Bear Marketâ in a June 19 article:
- Donât panic
- Focus on diversification
- Use dollar cost averaging
âNot only does dollar-cost averaging keep you consistent because you invest at set intervals instead of stopping because prices are falling,â Walters wrote, âbut it also helps you lower your cost basis during bear markets.â
The cost basis is the average price youâve paid for an asset. With DCA, youâre consistently investing the same amount of money. That sum allows you to acquire more coins and tokens when their prices are low. That reduces your cost basis. And the lower your basis, the higher your profit when you eventually sell.
Thatâs why investment advisors have long recognized the value of DCA, especially in falling markets.
Over the past month, more than two dozen investing sites and publications have joined The Motley Fool in recommending DCA for bear market investing, including Altcoin Buzz, Analytics Insight, Bankless, BeInCrypto, Benzinga, BlockPublisher, Cointelegraph, DataDrivenInvestor, Financial Post, GOBankingRates, Investing.com, Kiplinger, NFT Evening, Seeking Alpha, The FRED Report, The VR Soldier, Ticker Tape, Wealth Professional, and many more.
And now they have academic data to back up their position.
In a study published at Elsevierâs SSRN research network on June 14, 2022, University of Connecticut professor Thomas OâBrien demonstrates that DCA can deliver better results than optimal lump-sum investing. OâBrienâs âDollar Cost Averaging vs Optimal Buy-and-Hold with Equity Momentum and Reversalsâ takes into account real-world market factors that were overlooked in earlier studies.
Kriptomat Recurring Buy allows investors to implement a customized DCA strategy easily in just minutes. There is no charge except for normal transaction fees, and Kriptomat customers can skip purchases, cancel participation in the Recurring Buy program, or withdraw funds at any time with no penalty.
About Kriptomat
Founded in 2018, Kriptomat revolutionized the cryptocurrency world with the introduction of the simplest platform in Europe. Kriptomat makes digital finance so simple that everybody everywhere can access the freedom, fairness, and fulfillment that crypto represents. Hundreds of thousands of customers across Europe and in 120 countries worldwide trust Kriptomat when they buy, sell, swap, earn, share, and invest in crypto.
Disclaimer
The views and opinions expressed in this article are solely those of the authors and do not reflect the views of Bitcoin Insider. Every investment and trading move involves risk - this is especially true for cryptocurrencies given their volatility. We strongly advise our readers to conduct their own research when making a decision.