Facing Crypto Winter, Crypto Investors Can Apply the Dollar Cost Averaging Method

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JAKARTA - After being hit by a bearish phase in 2022, crypto optimism is predicted to start building in 2023. Especially with the Bitcoin Halving Day moment which will have an impact on increasing the price of Bitcoin later.

For crypto investors, this moment in 2023 is certainly the right moment to accumulate a crypto portfolio at a fairly low price. One strategy for accumulating crypto for long-term investment is through the dollar cost averaging method.

Dollar Cost Averaging is an investor's effort to divide the investment portion by entering the same nominal amount and regularly, within a certain time frame.

Indodax CEO Oscar Darmawan explained that dollar cost averaging is a fairly good way to avoid losses and so that investors can avoid being impulsive, invest according to plan, and be wiser in managing expenses.

"By buying crypto using the dollar cost averaging method, for example, investors have cold money of three million rupiah. Compared to buying Bitcoin directly worth three million, using the dollar cost averaging method, investors buy Bitcoin regularly for 250 thousand every month for one year," said Oscar in a statement received in Jakarta.

That way, Oscar said that the potential risk of loss would be smaller, especially if the Bitcoin price suddenly dropped. In fact, with this dollar cost averaging method, investors will tend to be luckier at certain moments.

Oscar added, although with the DCA strategy the profit growth is not too big and tends to be slow, it is a natural thing, considering the nature of investment is as a hedge not merely looking for large amounts of profit.

"Dollar Cost Averaging Method. The increase in profit is not too big, but if we look at it from a long-term perspective, this has the potential to produce higher asset values," explained Oscar.

Not only for long-term investments, the dollar cost averaging method is a suitable method for novice investors and investors who don't have a lot of free time.

"So, investors who want to use the dollar cost averaging method can start at the current price when the market is bearish," he concluded.