Dollar-Cost Averaging 101
You’ve no doubt heard from friends and family about the long-term benefits of investing in digital assets, noting how they promise far better returns than a standard savings account. The wealthiest people in the world often have impressive investment portfolios, and financial advisors will tell you that investments are a critical part of a comprehensive saving plan.
However, unless you are one of the few people who have studied finance, you probably don’t have the time to be staring at charts all day. Research shows that the most successful investors put their money in and then literally forget about their portfolios. This type of “set and forget” investing may not be sexy, but it works.
Dollar-Cost Averaging (DCA)
This is where the idea of dollar-cost averaging comes in — an investment strategy developed for investors who don’t have the time or knowledge to trade markets effectively. Dollar-cost averaging involves investing a set amount of money into your portfolio on a scheduled basis, irrelevant of current price or market movements. This means you’ll occasionally buy at a high price and sometimes at a low price, but in the long run, it’ll even out.
With dollar-cost averaging, you reduce the risk of suffering large losses while at the same time sacrificing the potential for large gains. It may be less exciting than trying to buy the dips and sell the tops, but it’s far safer if you don’t know what you’re doing. If you are investing in a trusted asset that promises decent gains in the long-term, then you’ll always come out on top with dollar-cost averaging.
Simple, effortless investing with Bamboo
Bamboo is an app that allows you to DCA into your favourite assets effortlessly, without the need for signing up to complicated exchanges and trying to time the market. Bamboo takes the risk and stress out of investing by simply rounding up any small purchases that you make and investing the remaining money for you. You’ll barely notice the difference, but these tiny amounts of money add up in the long run.
With Bamboo, you can easily start investing in a range of digital assets easily, securely and effectively. Over time, these small investments could grow into a serious amount of money for your retirement or large future purchases.
From Beginner to Pro
You can start your investing journey by selecting a custom portfolio of Bitcoin, Ethereum, Gold and Silver. Over time, you may want to rebalance your portfolio, but the idea is to invest consistently. The beauty of Bamboo is that it’s so easy, even your grandma could do it.
You can download the app via PlayStore at the following link while the iOS app can be found here. 🚀
The information provided in this article is for informational purposes only and should not be construed as financial advice. The information provided should not be relied upon for financial decisions. The author is not a financial advisor and is not qualified to provide financial advice.
The author does not endorse any of the products or services mentioned in this article and is not responsible for any losses or damages that may occur as a result of using the information provided in this article.
It is important to do your own research (DYOR) and understand the risks involved before investing in any cryptocurrency or other financial product. You should also consult with a financial advisor before making any investment decisions. Investing in cryptocurrencies is a high-risk investment. You should only invest money that you can afford to lose.