Here is the ultimate bear market crypto trading strategy

investors to develop a strategy that will not result in a one-time loss. Dollar Cost Averaging (DCA) is the strategy that has consistently yielded positive long-term results in both crypto and equity markets.

DCA works on the principle of regularly investing a predetermined amount of money (e.g. daily, weekly, bi-weekly or monthly) in a selected asset by adjusting the price of average purchase of the asset in order to reduce the impact of price volatility.

The investor divides his funds into small sums which are distributed at regular times rather than making a single large purchase.

This means that if an investor wants to invest $30,000 in Bitcoin, for example, and he invests all of a sudden, if the price drops 20% the next day, he will have already suffered a net loss of 20%.

But if he buys $1000 worth of Bitcoins every month, regardless of the price, for a period of 30 months, his losses will be mitigated. And better, it is very likely to take advantage of a rise in Bitcoin over a period of 30 months or 2 and a half years.

DCA Automation

DCA is an ongoing process that runs for a fixed period of time and therefore requires time and commitment. Investors can overcome this problem by automating the DCA process by depositing the amount they wish to invest on a platform that offers periodic purchases in fixed sums. The platform purchases the asset on their behalf at the pre-determined price and intervals.

Read also Investing in Dogecoin crypto: should you buy DOGE before $0.2?

How to apply the DCA method with the recurring purchase of cryptocurrencies?

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