why the DCA in the bear market is a (very) good idea?

Although a bear market is a difficult time for many investors, it is a good time to invest. In the case of Bitcoin (BTC), the “Dollar-Cost Averaging” strategy has already proven itself for a long time. Why is it ideal to launch your Bitcoin savings plan in the bear market?

This article is written in partnership with bit stack (find out more)

The power of DCA during a bear market

It’s a fact, we are now in bear market for several months and this trend could continue for quite a while.

Obviously, no one can predict when the cryptocurrency market will rebound, but many investors see this period as an opportunity.

Indeed, it is undeniable that if you believe in the future of Bitcoin, it is better to acquire it during bearish phases like the one we are currently going through. However, since it is never really possible to buy Bitcoin at the best price every time, you can turn to the Dollar-Cost Averaging method (DCA).

This investment method, which by the way has worked very well since the launch of Bitcoin, consists of buying an asset with a certain amount at regular intervals, without taking into account its price.

The effect of bad market entry is largely limited with DCAwhere an investment at the wrong time with a large capital could prove catastrophic.

Investing in Bitcoin with the DCA therefore smooths the entry price and greatly limits losses in the event of a continuous fall in the price.

A bear market being conducive to investment, even if no one can predict when it will end, it is particularly advisable to build your portfolio while waiting for the change in trend.

For save Bitcoin in this way without taking the leadthere is a solution: bit stack. This French startup which has obtained its PSAN registration from the Autorité des marchés financiers (AMF) facilitates investing in Bitcoin through several mechanisms that automate purchases.

Bitcoin savings made easy

👉 Find our complete presentation of Bitstack, savings in Bitcoin (BTC) in a simple and fun way

bit stack

3 Ways to Save Bitcoin with Bitstack

Recurring saving is the feature in Bitstack that comes closest to a classic DCA. From a very easy-to-use dashboard, you can define an investment frequency and an amount. For example, you can automatically invest €25 per week in Bitcoin.

It is also possible with Bitstack to buy Bitcoin on an ad hoc basis with a bank cardand that from just €1.

Finally, Bitstack’s flagship feature, automatic rounding of bank transactions. For example, suppose you buy a coffee for $2.80. The amount is rounded up to €3 and the €0.20 difference is automatically converted into BTC.

All rounded amounts are accumulated in a pool for 1 week and the saver’s bank account is debited with the corresponding amount at the beginning of the following week.

Automatic rounding is particularly simple to set up, and may be suitable for the most beginners to save bitcoin effortlessly.

An internal survey conducted by Bitstack on 742 of its users provides a better understanding of why they chose DCA to invest in Bitcoin:

  • 94% of savers will keep their bitcoins for more than 3 years (29% over 10 years);
  • 59% are willing to save up to €249 per month in Bitcoin;
  • 64% decided to invest in Bitcoin to diversify their investments;
  • 96% consider it to be a savings solution for the future.

🔥 Want to try Bitstack? Enjoy 5 € offered in Bitcoin by entering the code CRYPTOAST5 in the app.

The code is functional provided you have never saved in Bitcoin with Bitstack. The €5 in BTC will be credited to your wallet after activating a savings rule (rounding up and/or recurring) and purchasing at least €100 in BTC.

Bitcoin savings made easy

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Investments in cryptocurrencies are risky. Cryptoast is not responsible for the quality of the products or services presented on this page and could not be held responsible, directly or indirectly, for any damage or loss caused following the use of a good or service highlighted in this article. Investments related to crypto-assets are risky by nature, readers should do their own research before taking any action and only invest within the limits of their financial capabilities. This article does not constitute investment advice.

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