DCA dubbed best trading strategy by 59% of crypto investors

Kraken’s latest survey reveals that 59% of respondents use dollar cost averaging as their main crypto investment strategy, while 83.53% have used DCA at least once in their crypto activities.

Crypto exchange Kraken found in a survey of 1,109 crypto investors that the vast majority prefer to use dollar-cost averaging when purchasing crypto. 59% of investors use DCA as the main strategy for investing in cryptocurrency.

Dollar-cost averaging is an investment strategy that involves purchasing a fixed amount of crypto at regular intervals over a set period of time. It gives investors a “set it and forget it” mentality, which is seen as a positive way to accumulate cryptocurrency over time.

About 46.13% of respondents on Kraken said the biggest advantage of using the DCA strategy is how it protects them against the volatility of the market. Meanwhile, 23.95% admitted that they like using DCA because it encourages them to develop consistent investment habits.

Additionally, 12% of participants believe they can take emotions out of the equation with DCA.

“While DCA is often viewed as a way to develop a consistent investment approach and manage emotional reactions to market changes, most crypto investors believe the DCA strategy plays a more important role,” Kraken said in the survey results.

The second most popular strategy used by crypto traders is to time the market and make adjustments. Timing the market is an investment strategy that involves buying or selling crypto based on future market price predictions for an asset.

This strategy is especially popular among young crypto investors between the ages of 18 and 29 who do not use DCA in their investment strategies. This may be due to the painfully slow process of accumulating wealth that DCA offers.

However, the survey also found that 22.77% of young investors see DCA as the most beneficial strategy.

Additionally, 73.69% of respondents admitted that they spend more time checking the crypto market rather than traditional markets. Kraken’s survey noted that older investors over the age of 45 tend to check crypto markets more frequently than traditional markets.