Lesson from the FTX debacle: What should the scaredy cat consider to DCA in the bear market?

The bear market is depressing.

We all know that. There is hardly any excitement in the market, only shocking news such as the FTX debacle.

It takes guts to continue to keep investing or DCA in this market condition. The fear is that it will drop further.

But the seasoned long-term investor would see the bear market as the best time to invest.

Buy everything cheap, and sell at a tidy profit in the bull market.

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For the scaredy cat like us noob investors, we are even confused as to what to DCA in the bear market?

The FTX debacle tells me one thing: certainly not to DCA into a fundamentally centralized asset class like FTX. The uncertainty and risk of assets that can fail because of concentrated ownership make them less desirable for DCA.

By that rationale, these are the assets that I think are safer to DCA because they are unlikely to fail due to some mistake from a CEO and the like.

1. S&P 500 - Self-cleaning list of top 500 US companies forming the index.
2. Bitcoin - Robust decentralized crypto asset.
3. Hive - Robust decentralized crypto asset.

The commonality of the three above is the lack of a CEO. That takes away the risk associated with centralized leadership.

If one believes that the price now is low enough, and will grow over time, the scaredy cat investor can consider DCA in these assets in a bear market.

My point is, be careful what you DCA into.

Imagine if you had DCA into FTX?

P/S: This is not financial advice, and please do your own due diligence before investing.

If you read this far... and if you are a like-minded Hiver who is on the path to learning more about Hive and crypto investing, and if you like to be tagged when I write such posts, I welcome you to leave a comment below and let me know. We can form an alliance to support each other's growth.

You might be interested in this post, @jacoalberts, @young-kedar, @vickvan, and @hankanon!

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