Dollar-cost averaging has survived as a strategy for 75 years since it was first popularized, and I'd argue that's for good reason. As participants in the survey noted, dollar-cost averaging can help remove emotion from decisions and focus on long-term outlooks; that's especially critical in rapidly evolving technologies and markets like cryptocurrencies.
The survey found that 46% of respondents said the strategy helped them hedge against market volatility, while 24% said it encouraged consistent investment habits and 12% said it removed emotions from their decision-making process.
Investors making less than $50,000 a year said the most significant benefit of dollar-cost averaging was the encouragement of consistent investment habits, but those making over $50,000 had more interest in reducing the impacts of market volatility.
This difference might indicate that lower-income investors need more support with investment decisions, including maintaining regular contributions and sticking to a trading decision.
#dollar-cost-averaging #crypto-investment-strategy #market-volatility #survey-insights #investor-behavior
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