Market timing is among the hardest things to do when it comes to trading or investing. The main benefit of dollar-cost averaging is that it reduces the risk of making a bet at the wrong time. Let’s see how DCA works and why you might want to consider using it. It involves buying equal amounts of the asset at regular intervals.īy buying at regular intervals, users can potentially smooth out the average price that they acquire an asset at. What is dollar-cost averaging?ĭollar-cost averaging is an investment strategy that aims to reduce the impact of volatility on the purchase of assets.
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Or just a more passive investment style.īut what if you want to buy crypto but don’t really know how to start? More specifically, what would be the optimal way to build a longer-term position? In this article, we’ll discuss a popular strategy known as DCA, or dollar-cost averaging.
Like many users, you might be looking for an investment strategy that is less demanding and time-consuming. However, there are other options out there. The executive further says the SEC hasn’t historically asked about forks of bitcoin like litecoin, but based on recent comments to the House Appropriations Committee that bitcoin “may” be a commodity, that could change soon.Dollar-cost averaging is an investment strategy that aims to reduce the impact of volatility on the purchase of assets.Īctive trading can be stressful, time-consuming, and still yield poor results. The executive said these instances are separate from standard procedure the SEC regularly conducts-for example-asking exchanges if they’ve had any communication with the team that created a newly listed asset, are in touch with anyone raising money for the newly listed asset, or if the team ever made representations about how the token might accrue value. Binance.US de-listed one of the assets listed by the SEC earlier this week. cryptocurrency exchanges have likely received Wells Notices used to formally inform companies when an action is about to be brought against them, and that most are under investigation.
The most likely crypto bill to see traction before the year’s over is the recently delayed stablecoin bill that describes how banks might be allowed to issue their own stablecoins, which the source says could be attached to the appropriations bill by the end of the year.Ī senior executive at a large cryptocurrency exchange also said, on background, that based on chatter he’s hearing from members of the SEC, many U.S. exchange collapsing, could rally lawmakers, he says. The only way either bill would pass this year is if a catastrophic black swan event, like a major U.S. Ironically, Senator Lummis’ staffer gives both bills a less than 50% chance of being passed this year. Senator Lummis herself co-sponsored with Senator Kirsten Gillibrand (D-NY), the Responsible Financial Innovation Act, a bipartisan legislative proposal for the regulation of digital assets that is even more comprehensive in scope. Senators Debbie Stabenow (D-MI), Chairwoman of the Senate Committee on Agriculture, Nutrition, and Forestry, and ranking member John Boozman (R-AR), introduced the Digital Commodities Consumer Protection Act of 2022 to give the CFTC new powers to regulate digital commodities. Perhaps self-servingly, the source described the conversations between the SEC and CFTC as not particularly fruitful, arguing that the final decision about who gets what authority will likely fall in law-makers’ hands.