Kraken survey: 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.

In a survey conducted with 1,109 crypto investors, crypto exchange Kraken found that a large majority of them have opted to use dollar-cost averaging when making crypto purchases. As many as 59% of investors use DCA as their main strategy for investing in cryptocurrency.

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

Around 46.13% of Kraken’s respondents said that the biggest advantage to using the DCA strategy is how it helps protect them against the market’s volatility. Meanwhile, 23.95% admitted they like using DCA because it encourages them to develop consistent investing habits.

Furthermore, 12% of respondents believe that with DCA, they can take emotions out of the equation.

“While DCA is generally seen 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,” said Kraken in its survey results.

The second most popular strategy used by crypto investors is timing the market and making adjustments. Timing the market is an investment strategy which involves buying or selling crypto based on future market price predictions regarding an asset.

This strategy is especially popular among younger crypto investors, aged 18 to 29 years old, who have not taken to using DCA in their investment strategies. This could be due to the painfully slow process of accumulating wealth that DCA offers.

Though, the survey also found that 22.77% of younger investors saw DCA as the most beneficial strategy.

Additionally, 73.69% of respondents admitted that they spend more time checking the crypto market instead of the traditional markets. Kraken’s survey stated that older investors, aged above 45 years old, have a tendency to check crypto markets more frequently than traditional ones.