Key Takeaways
- Kraken's survey shows 59% of investors use dollar-cost averaging.
- Higher-income investors prefer DCA for reducing market volatility.
- Only 8% of investors maintain strategies during losses.
A recent survey by Kraken shows that 59% of over 1,000 crypto investors use dollar-cost averaging (DCA) as their primary investment strategy. The study, conducted among 1,109 participants, revealed that 83.5% of respondents had utilized DCA at some point.
DCA involves making regular purchases of an asset regardless of price fluctuations. Kraken researchers highlighted how this approach helps investors reduce short-term volatility and avoid emotional decision-making.
The survey found that income levels influenced the perceived advantages of DCA. Lower-income investors, earning under $50,000, valued consistent investment habits. In contrast, those earning over $50,000 prioritized reducing volatility’s impact, particularly for the $175,000–$199,000 income bracket, where nearly 70% viewed volatility reduction as the top benefit.
Notably, 63% of higher-income respondents, earning more than $100,000, expressed confidence in sticking to their strategies despite market fluctuations. However, only 8% of all respondents maintained their strategies during financial losses. Additionally, younger investors aged 18-29 preferred riskier tactics like market timing, while older participants, over 45, monitored crypto markets more closely.
Kraken acknowledged that while DCA isn’t flawless, it could ease the stress of trying to time the market.
