2023-02-23 20:30:05
TOP-3 unobvious strategies | VA, LSI, Buy the Dip - what to choose? What to do if you want to invest in crypto, but don't know where to start? Today we will talk about investment strategies that can serve as an alternative to DCA.
1. Value Averaging - cost averaging
2. Lump Sum Investing - one time investment
3. Buy the Dip - buying at the bottom price
Let's discover each
Value Averaging (VA)For example, you are going to invest $3600 in 36 months from March 1st. Using VA, you aim for a portfolio of $100 in early March, $200 in early April, and so on.
If assets have dropped (to $95 last month), then replenish the portfolio for the amount of losses (+$105 in the new month); and if assets have grown ($110), then add less (+$90 in the new month).
Lump Sum Investing
You put all your money into the market as soon as you have it in your hands and enjoy the effect of compound interest.
In addition, the more time passes since the investment, the more your assets grow (unless, of course, the market is bullish).
Buy the DipFavorite strategy of crypto bloggers. You buy an asset only after it falls in price. It is believed that a lower price represents a bargain, as the asset will bounce back and rise in value over time.
Remember that each strategy is compiled individually depending on the amount of investment, goals, distance and risks.
- if it was helpful!
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