We’ve all heard the saying “Buy low, sell high.”
While this certainly sounds appealing, pulling it off can be easier said than done. To overcome this challenge, you could rely on the latest news, government data, or even sophisticated technical indicators to buy and sell at the right time…or not.
Alternatively, you could simply use dollar-cost averaging, a simple technique that involves making regular, fixed investments to accumulate wealth over time. By taking this approach, you are doing the opposite of “timing the market.”
How Dollar Cost Averaging Works
For example, let’s say you want to invest $100 into bitcoin every week. Should the price of the digital currency fall, your $100 will simply buy you more bitcoin. If the price rises, your weekly investment will buy you less bitcoin. Continue reading…