ASK LEO: DCA AND DIVERSIFICATION;DO THEY HAVE A CONFLUENCE POINT?
When investing in cryptocurrency,there are lot of ways and strategic means that one can imbibe to accumulate cryptocurrency wealth. Meanwhile, concerning the information about cryptocurrency investment, it's where one reaches, that's the amount of information, strategy or means that one would know about cryptocurrency information that you are looking for. In other words,you get what you are able to look for.
What both terms mean "DCA" and "DIVERSIFICATION"
Dollar cost averaging is just simple means or strategic way of accumulating or gathering cryptocurrency investment wealth bit by bit or by means of step by step to fend off effect of cryptocurrency volatility. You add up your cryptocurrency wealth with the amount of money you could afford at that moment. It's not necessary you have a big load of fund before you can invest to meet your target. You can imbibe in meeting your cryptocurrency investment target little by little. Dollar cost average allows Investors not necessarily try to invest once. For example, you can make a plan to target leotoken investment of $500,it's not necessary you wait till you have the $500 before you can buy the $500 worth of leotoken, you can be buying the leotoken bit by bit. Maybe when you have $20 you can buy the little you can at that moment,then maybe buy another little when you have like $10,just like that until you reach your target of $500 leotoken investment. That's what DCA entails. Moreso, the reason why DCA is advantageous is that, e overall advantages of Dollar Cost Averaging is that its assist potential or eventual investors to lessen the effect of volatility on the price or rate of an investment that has been targeted or planned.
On the other hand, Diversification is another means of investing in cryptocurrency by spreading your Investment across different cryptocurrency coin. I regard it as "put not your eggs in one basket". It also means, instead of investing only in Bitcoin,you can as well invest ethereum, litecoin or hivecoin.
Do both DCA and DIVERSIFICATION have a meeting point?
Both pattern of investments are not too far apart but not that so close. While DCA is to reduce the effect of how volatility operates, DIVERSIFICATION helps prevent Investors from losing their Investors at once.
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