5 Amazing Altcoins to DCA in Bear market .Which one would you choose ?
- Altcoins – What is DCA in Crypto ?
- Altcoins – How does DCA work ?
- What is DCA-CC Calculator? How does it Work ? – Altcoins
- Best ways and strategies to use dollar cost averaging in crypto
- 5 Top coins to DCA in this Bear Market
Altcoins – What is DCA in Crypto ?
Firstly, DCA is Dollar Cost Averaging . Additionally, it reduces the risk of investing going RED caused by short-term market volatility.
Secondly, crypto is very volatile in nature . Thirdly, You can make a lot of money in very short amount of time.
Most importantly, DCA is like buying a little bit of your favorite cryptocurrency each week or month regardless of the price.
Further, by buying equal dollar amounts at regular intervals , you are helping to smooth out the bumps of a volatile market.
Essentially, if you you to invest in crypto for a long time, DCA is a good way of investing.
Altcoins – How does DCA work ?
First, instead of putting lumpsum in crypto at once , you put money in small fragments . Second, even if the price goes down , your average buy price goes down.
Additionally, in bull market , this could also reduce your potential profit as you remain less exposed to the market .
Further, DCA strategy is mainly for the ones who wants to make profit over a long period of time.
Firstly, think of it as when buying a house. Additionally, when you buy a house ,you don’t just look fork over all the cash upfront.
Furthermore, you make a down payment , and then, you pay the mortgage every month . Over time, the house is yours.
Further, DCA is like that , but with investments . Similarly, you spread out your investment over time.
Additionally, you are less likely to buy when the market is high. And then, just like a house , you eventually, own more and more of your investment.
Similarly, by buying a little bit of your favorite crypos each day, week or a month ,you are making small regular investments.
Further, it will help you get the coin you want without waiting for a price dip.
Additionally, you must remember that there is always a risk that price of the coin could continue to fall.
However, this risk can be mitigated by using DCA when the market is trending upwards.
What is DCA-CC Calculator? How does it Work ? – Altcoins
Firstly, if you want to test out your investment strategy , you will need to understand how it works and what you are hoping to achieve.
Secondly, DCA-CC calculator can help you see if your strategy will generate the return you want.
Thirdly, The calculator is separated in 2 nodes. The dollar cost averaging as well as , lump sum investing calculator.
Additionally, you can use either one to budget for your investments on a regular basis , or to invest all your money at once.
Further, DCA CC is a powerful easy to use backtesting tool that can be used to test and optimized your investment strategy.
Best ways and strategies to use dollar cost averaging in crypto
To set you off on the best foot I will give you a couple of handy tips before starting.
None of these tips are going to be game-changing but if you do use them it might give you a better start and better result overall.
- Invest in several digital assets – You never know which coin will start moving in a positive trend and you definitely don’t know when. Therefore, it’s a common investment practice to choose a basket for several coins to stand a better chance of picking a good one.
- Pick coins from the top 100 – By Choosing coins from the top 100 by market cap gives you a clear edge due to the fact that they have already had time to grow a little and the cryptocurrency has had time to be seen by more people. This means that when the overall trend of the crypto market turns positive, your coins will most likely follow suit.
- Choose a platform with low fees – Since you are going to make several purchases over a period of several years it goes without saying that a good strategy is to pick a platform with the lowest fees possible. Check the table below to find one that suits you.
- Choose different investment frequencies – It is very effective to choose different frequencies on your investments if you decide to buy several different digital assets. This will act as a risk mitigator and give an advantage when prices are staying low for a longer period of time.
5 Top coins to DCA in this Bear Market
1. DOT –
Investing $100 in DOT from Dec.2022 to Mar 2023 every 7 days ($1,300 total ) would result in $1,534.3 of value Average price of $5.58 per 1 DOT + 18.02 %.
Profit / Loss every 7 days
Based on your purchase interval you would make profit 62% of the time.
What is Polkadot ? – Polkadot is a blockchain network often described as a “blockchain of blockchains”.
Additionally, it allows users to launch and operate their own blockchains on top of the main Polkadot blockchain.
Further, this main blockchain , called the relay chain , does not support smart contracts . Additionally, other blockchains connected to it can support them .
Why DOT to DCA ?
Firstly Polkadot is set to become a growing ecosystem of cryptocurrencies . Additionally, which competes with other smart contract networks such as Ethereum , as well as, Binance Smart Chain and more.
Further, DOT is the native currency of the Polkadot network . Additionally, it serves as it’s governance token .
Moreover, DOT holders can influence the project’s governance by voting on changes as well as , by electing Council of members.
Additionally, staking DOT also yields returns as holders are at the same time securing the network as well as validating transactions.
Polkadot rewards DOT stakers with newly minted tokens based on the amount they are staking.
Who was the Founder of Polkadot ?
The Polkadot project was founded by Ethereum co-founder Gavin Wood, along with Peter Czaban and Robert Habermeier in 2016.
Additionally, Wood is the developer behind Solidity , the coding language used to write smart contracts on Ethereum.
As well as , he has experience as a research scientist at Microsoft. Further, Wood is the president of the Web 3 Foundation . Which is a non-profit organization .
2. ETH – Ethereum should be your second pick . Further, it is second best cryptocurrency by market cap.
But why ETH ? – The reason for investing in it is clear. Ethereum is one of the major projects in the altcoin space , if not the main one.
Additionally, there are thousands of decentralized apps running on Ethereum network. Secondly, 25% of your portfolio must be Ethereum.
ETH to DCA
ETH holders need not worry , though there is a chance for the market to fall some more , but do not try to catch the bottom.
It is is the best coin overall.
3. MATIC –
First, Polygon (MTIC) is a Layer – 2 scaling solution for Ethereum that provides users with faster transactions and lower costs.
Mainly, as a parallel blockchain running along Ethereum-based protocols that have made their applications work on both networks.
Secondly, The Polygon network can be used through cryptocurrency wallets compatible with Web 3 applications.
Such as Metamask as well as the Coinbase wallet. Additionally, these are wallets thst can interact with smart contracts on the blockchain . As well as, it can be found built-in to some web browsers such as Opera as well as Brave.
Firstly, MATIC is currently showing decent growth rates while it’s ATH is more than 2x higher than the token ‘s current price (around $1.20) .
Additionally, MATIC has experienced a nice turnaround as of late , increasing 55.29% in value over the last 30 days as of Feb.06,2023.
Further, this price surge has crypto investors everywhere turning to Polygon as a crypto they need to buy now.
First, while Polygon had a solid last 30 days ,it had a really rough last 12 months. Further, even with that 55.29 % gain in the last 30 days , it is still down 42.64^ in the last year.
In addition , Polygon must go this year just to reach the min.projection of $1.65 for the end of 2023.
Simply, this crypto must continue it’s surge for a while before it can even get to the baseline predicted above.
Additionally, Bitgert blockchain is faster and the gas fee is cheaper than Polygon. Further, the Brise chain compatibility with Ethereum smart contracts is also making it superior to Polygon ( MATIC ).
Further, this might be one of the factor in the MATIC dropping price.
4. AVAX –
Firstly, many experts believe that AVAX has a very bright future . Secondly, the coin is well positioned to take advantage of the growing DeFi market.
Additionally, it’s unique governance model could make it a leading player in the space.
Further, Avalanche is simply #14 by current market cap and #10 in popularity on Coinbase .
Moreover, Avalanche is a promising platform focused on creating multifunctional blockchains . Again, with staggering team from the best companies in the world.
Further, after years of analysis of the Avalanche price, crypto experts are ready to provide their AVAX cost estimation for 2030.
Essentially, it will be traded for at least $762.81 with the possible maximum peaks at $935.55.
Therefore, on average, you can expect the AVAX price to be around $790.27 in 2030.
First, the native token Rose is a utility token on the Oasis platform . Additionally, it has a fixed supply .
Further, Rose can be used to pay transaction fees , staking as well as delegating on the oasis consensus layer .
Oasis Network proved to be one of the most talked about coins in the crypto space this past year.
With this mind, it is wise to say that Rose is a good choice of investment. Additionally, Rose current price is $0.071343 , with a 24-hour trading volume of $125.50 M.
Further, Rose ranks #136 by market cap. Additionally, the Rose Dollar (RUSD) is a USD pegged stablecoin .
Further , users can mint by depositing their interest-bearing tokens .
Additionally, it’s price for January, 2025 should range between $0.32 to $0.95 and the average price of Rose should be around $0.89.
Further, Rose has moved by +10.32 % in the past week. Additionally, it has pumped by 0.32 % .
There is a slight bearish sentiment in the crypto market. The long term sentiment , however, remains bullish and Rose could hit $0.069 in 2024.
Rose to DCA
Firstly, the Oasis Protocol Foundation looks to support projects focussed on making that privacy-first internet a reality .
Additionally, from building privacy- preserving applications to developing more powerful tools for the network. As well as, improving how it operates.
Further, the consensus layer is a proof-of-stake (PoS) secured blockchain with a decentralized set of validator nodes . Additionally, which is operated by independent nodes .
Furthermore, the separation of execution from consensus is secured using fraud proofs.
Additionally, on the oasis Network’s Cipher Para Time , nodes are required to use a type of secure computing technology called a TEE (Trusted Execution Environment ) .
Further, it acts as a hypothetical black box for smart contract execution in a confidential Para Time.
Further, encrypted data goes into the black box along with the smart contract, data is decrypted as well as processed by the smart contract.
And then , encrypted before it is sent out of the TEE.
Further, this process ensures that data remains confidential and is never leaked to the node operator ot application developer.
Read More Crypto Indexing – How To Trade A Crypto Index?2023
Other alts, and DCA ? if you are into new coins and are majorly in them , I would suggest you to change 50% of your portfolio to BTC.
Further, if you are down by 50% or more, know that there is a high chance of the alts you are holding to go another 90-95% down from where they are.
Furthermore, I suggest that you do not try doing DCA in alts except the ones that mentioned in the article above.
Here are , some of the most reputable and trusted bitcoin investment sites that offer DCA strategies for crypto.
Make sure to read the full review to see whether the exchange suits you or not. It should offer your local fiat currency, payment method, and regulation.
Which crypto is best for DCA ?
Is it better to trade BTC or ETH ?
ETH good crypto investment ?
What is a disadvantage of DCA ?
Can DCA be a long term strategy ?
Which crypto is best for DCA ?
Is it better to trade BTC or ETH ?
Firstly, Bitcoin is the most established and mainstream of the two, . Additionally, it makes ETH just a touch riskier. Moreover, as with most investments it’s possible Ethereum’s higher risk brings with it potential for higher rewards.
ETH a good crypto investment ?
Ethereum is good for long-term investment for the next one to three years and is bullish overall.
What is disadvantage of DCA ?
Firstly, the market tends to go up. This means, that if you invest a lump sum earlier ,it is likely to do better than smaller amounts invested over a period of time.
Additionally, lump sum will provide a better return over the long run as a result of the market’s rising tendency.
Can DCA be a long-term strategy ?
Firstly, DCA means you are continuously putting in small amounts that do not greatly limit your day-to-day life . Further, it grows value of your portfolio.
DCA is a longer -term investment strategy. Additionally, it eliminates some of the risks involved with investing.
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