Although the price of Solana (SOL) has been on an enviable trajectory in recent years, the journey has certainly not been without its ups and downs. In this regard, the well-known dollar-cost averaging strategy would have made things a lot easier.
By implementing this strategy, emotions are removed from the investment process and a stable average purchase price is achieved. This article discusses how much money you would have made if you invested €25 in Solana every week for the past two years. The results speak for themselves.
Cryptocurrency exchange Bitvavo recently introduced its DCA feature. Get a €10 welcome bonus now when you do so Create an account with Bitvavo.
Popular Cryptocurrency Investment Strategy: 25 Euro Sol Per Week
Almost everyone in the crypto world knows this feeling: constantly monitoring the price chart of your favorite cryptocurrency, day after day, trying to enter at the optimal time.
However, with the unpredictability of the cryptocurrency market, it is almost impossible to know how the price will move in the near future. Moreover, emotions play a significant role in decision making. Many wait a long time for the price to drop, but at the crucial moment they are still too eager to enter. Others are too eager and then wait for lower prices, with the risk of never entering.
With the popular DCA method, you invest a fixed amount at regular intervals, regardless of the underlying price. You decide for yourself how much money you can afford to save and choose whether you want to spread your purchases monthly, weekly or even daily. Since you expand your position during peaks and troughs, the average purchase price will stabilize over time. Moreover, you do not have to worry about the volatile price movement of the asset, which also prevents you from making wrong decisions guided by emotions.
If you had saved €25 every week for the past two years and invested it in Solana, you would have invested a total of €2,225 by now. That €2,225 investment would be worth $16,834.80 today. That’s an astonishing increase of no less than 656.62%.
SOL’s impressive result highlights why the DCA strategy is one of the most reliable and effective methods in the investment world.
Many investors who use the DCA strategy have found that it not only improves their financial results, but also improves their peace of mind. By eliminating the stress of market movements, they can focus on their long-term goals without worrying about daily price fluctuations. This makes DCA an attractive option for both new and experienced investors.
Buy XRP Automatically on Bitvavo
Bitvavo recently introduced a new useful feature to implement the above strategy without worrying about it. Instead of having to log in every week or month to make your Bitcoin purchase, Bitvavo can now automatically arrange it for you.
Setting up the DCA function is easy. You can choose which cryptocurrency you want to buy each week, fortnight or month, and the day you want the order to be executed. Bitvavo will then execute the order at a random time on the day you choose.
The purchase will be made using the EUR balance in your account. Therefore, it is important that there is sufficient balance in your account and that you understand that you must authorize Bitvavo to automatically deduct the balance from your account.
Want to start buying Bitcoin automatically but don’t have a Bitvavo account yet? Create an account via this link and get €10 free credit and trade your first €10,000 completely free.
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