A survey by Kraken reveals that dollar-cost averaging is a favored strategy among crypto investors.

Benefits of Dollar-Cost Averaging

Dollar-cost averaging involves regularly purchasing an asset, such as Bitcoin or Ethereum, regardless of current market price. According to Kraken's research, this strategy helps investors minimize the impact of short-term market fluctuations and remove emotions from investment decisions. Approximately 46% of respondents cited its ability to hedge against market volatility as the primary advantage.

Income and Age as Strategy Factors

The survey also revealed that income and age significantly influence investment strategy choices. Wealthier participants, earning over $100,000, showed greater confidence in adhering to plans even during market downturns, with nearly 63% showing strong commitment. Meanwhile, younger investors aged 18 to 29 are more inclined to opt for riskier approaches.

Conclusion: Dollar-Cost Averaging in Numbers

Despite its popularity, only 8% of investors stuck with dollar-cost averaging during periods of financial loss. Nevertheless, the strategy remains a preferred choice among various age and income groups according to Kraken.

Dollar-cost averaging remains popular among investors for its ability to mitigate volatility and ensure consistent investing. Kraken's survey highlights the significance of this strategy across different age and income groups.