Dollar cost averaging<\/h4>\n
If you are investing for the long term, remember that dollar-cost averaging is one of the best techniques for evenly distributing your capital.<\/p>\n\n
Dollar-cost averaging is the process of making small investments regularly, rather than in one lump sum. The idea is to spread your capital over a longer time frame in order to take advantage of fluctuations in the market (i.e. when the price drops). Sticking to a regular schedule also helps eliminate the emotional side of investing \u2013 such as buying after seeing a big rally in price \u2013 which can be a trap for new investors.<\/p>\n\n
This could mean making a series of small investments weekly, monthly or quarterly, depending on what's best for you.<\/p>\n\n
This allows you to ignore short term changes in price and eliminates the need for you to try and \"time the market\". Over time, if the underlying cryptocurrency has increased in value, your average purchase price will be much less than the current market price.<\/p>\n\n
If you don't fancy setting this up this yourself, you could use a recurring buy service through exchanges such as Coinbase<\/a>, Crypto.com<\/a> or Gemini<\/a>. Although keep in mind that the fees are usually a bit higher here than through purchasing on the spot market. Alternatively, you can use a round-up app such as Bamboo to make regular microinvestments.<\/p>\n\n\n<\/div>\n<\/article>Compare cryptocurrency exchanges<\/h3>\n