DCA With CHK | Investment Perspective

Market situation

Bitcoin yesterday fluctuated around $ 34,000 and at one point dropped to $ 32,000. Altcoins also fell slightly in line with BTC.

Fear still pervades all financial markets. Inflation in the US is now at a 40-year high. Real estate interest rates are at the highest level in the past 12 years. So the US futures market remains red. US stocks after opening the second session at the beginning of the week also fell.

The protracted war between Russia and Ukraine continues to affect the supply chains and economies of many countries around the world. However, in the long term, the overall economy is still growing.

Average price by capitalization

In this share, Thuan will talk about how to average his price for your reference. Thuan has been steadily averaging crypto prices from 2017 to present. It was the crypto winter when prices were very low that helped Thuan have a low price average. When the market grows and reaches the expected return, investors also need a strategy to gradually take profits on their investment.

For effective price averaging, it is first necessary to select assets with growth potential. This choice requires information, market and potential assessment. With the crypto market, Thuan averages prices mainly on BTC and ETH. There are also a number of other altcoins with a small percentage of the total portfolio. Because over the years, BTC has always held the top position in the market and most altcoins also follow the trend of BTC. Next is ETH, which also holds the second position for many years.

From the information learned and selected crypto to price averaging, investors need to ensure other sources of income to be able to average the price steadily. At the same time, it is necessary to trust and be persistent and disciplined with your strategy.

One way to average prices that don’t take too long for investors is to average prices by market capitalization. Investors will choose to average the price of the top 10 coins or, as in the stock market, to average the price of the 10 largest capitalization stocks. The top coins will have changes after many years, but there will be coins that stay and grow strongly after many years. So this price averaging method will not take too much time to choose and is simple to apply.

For a specific example for price averaging by capitalization, Thuan is averaging the top 10 coins with the largest capitalization today. The amount in the coins will be in proportion to the market capitalization of those coins.

This demo account will be averaging the price at regular monthly or weekly basis. Each time, if a coin has a lower value than the capitalization then more capital will be added to average the price and raise the rate gradually to the capitalization rate.

This is a simple and easy way to do crypto price averaging once an investor understands. Hope this share adds a reference perspective for you about the average price. Thank you for your support and have a great week!