Coinvision Finance
رفتن به کانال در Telegram
4 419
مشترکین
اطلاعاتی وجود ندارد24 ساعت
-177 روز
-7630 روز
در حال بارگیری داده...
کانالهای مشابه
ابر برچسبها
هیچ دادهای
مشکلی وجود دارد؟ لطفاً صفحه را تازه کنید یا با مدیر پشتیبانی ما تماس بگیرید.
اشارات ورودی و خروجی
---
---
---
---
---
---
جذب مشترکین
نوامبر '24
نوامبر '240
در 0 کانالها
اکتبر '24
+1
در 0 کانالها
Get PRO
سپتامبر '240
در 0 کانالها
Get PRO
اوت '240
در 0 کانالها
Get PRO
ژوئیه '240
در 0 کانالها
Get PRO
ژوئن '240
در 0 کانالها
Get PRO
مه '240
در 0 کانالها
Get PRO
آوریل '240
در 0 کانالها
Get PRO
مارس '240
در 0 کانالها
Get PRO
فوریه '240
در 0 کانالها
Get PRO
ژانویه '240
در 0 کانالها
Get PRO
دسامبر '230
در 0 کانالها
Get PRO
نوامبر '230
در 0 کانالها
Get PRO
اکتبر '230
در 1 کانالها
Get PRO
سپتامبر '230
در 0 کانالها
Get PRO
اوت '230
در 0 کانالها
Get PRO
ژوئیه '230
در 0 کانالها
Get PRO
ژوئن '230
در 0 کانالها
Get PRO
مه '230
در 0 کانالها
Get PRO
آوریل '230
در 0 کانالها
Get PRO
مارس '230
در 0 کانالها
Get PRO
فوریه '230
در 0 کانالها
Get PRO
ژانویه '23
+1
در 0 کانالها
Get PRO
دسامبر '22
+5
در 0 کانالها
Get PRO
نوامبر '22
+3
در 0 کانالها
Get PRO
اکتبر '220
در 0 کانالها
Get PRO
سپتامبر '22
+18
در 0 کانالها
Get PRO
اوت '22
+30
در 0 کانالها
Get PRO
ژوئیه '220
در 0 کانالها
Get PRO
ژوئن '22
+107
در 0 کانالها
Get PRO
مه '22
+170
در 0 کانالها
Get PRO
آوریل '22
+190
در 0 کانالها
Get PRO
مارس '22
+122
در 0 کانالها
Get PRO
فوریه '22
+198
در 0 کانالها
Get PRO
ژانویه '22
+630
در 0 کانالها
Get PRO
دسامبر '21
+179
در 0 کانالها
Get PRO
نوامبر '21
+150
در 0 کانالها
Get PRO
اکتبر '21
+221
در 0 کانالها
Get PRO
سپتامبر '21
+352
در 0 کانالها
Get PRO
اوت '21
+692
در 0 کانالها
Get PRO
ژوئیه '21
+929
در 0 کانالها
Get PRO
ژوئن '21
+1 614
در 0 کانالها
Get PRO
مه '21
+1 874
در 0 کانالها
Get PRO
آوریل '21
+1 820
در 0 کانالها
Get PRO
مارس '21
+4 216
در 0 کانالها
| تاریخ | رشد مشترکین | اشارات | کانالها | |
| 17 نوامبر | 0 | |||
| 16 نوامبر | 0 | |||
| 15 نوامبر | 0 | |||
| 14 نوامبر | 0 | |||
| 13 نوامبر | 0 | |||
| 12 نوامبر | 0 | |||
| 11 نوامبر | 0 | |||
| 10 نوامبر | 0 | |||
| 09 نوامبر | 0 | |||
| 08 نوامبر | 0 | |||
| 07 نوامبر | 0 | |||
| 06 نوامبر | 0 | |||
| 05 نوامبر | 0 | |||
| 04 نوامبر | 0 | |||
| 03 نوامبر | 0 | |||
| 02 نوامبر | 0 | |||
| 01 نوامبر | 0 |
پستهای کانال
Coinvision pays 10% Return on Investment Daily.
Withdrawal is done daily.
Visit www.coinvision.finance or Message @doc_tonia for assistance
| 2 |  +1www.coinvision.finance pays 10% Daily, consistently and fast withdrawal.
We are experts in Crypto & Forex trading using our Automated Artificial Intelligence (AAI) Robot.
Register today at the website.
Message @doc_tonia for any Assistance. | 804 |
| 3 |  +1AI enables automation of routine monotonous tasks in areas such as data collection, data entry, customer focussed business, email responses, software testing, invoice generation, and many more.
At Coinvision, we offer 10% Daily returns on investment using our Automated Artificial Intelligence (AAI).
It’s 100% guaranteed and trusted.
Join today @ www.coinvision.finance
Message @doc_tonia for assistance | 890 |
| 4 |  +1Artificial intelligence (AI) is a set of technologies that enable computers to perform a variety of advanced functions, including the ability to see, understand and translate spoken and written language, analyze data, make recommendations, and more.
We make use of AUTOMATED ARTIFICIAL INTELLIGENCE (AAI) to generate guaranteed profit!
Join now; www.coinvision.finance
Or message @doc_tonia for assistance. | 936 |
| 5 |  +1Coinvision Finance pays!
10% Returns on investment (ROI)
Everyday is possible.
Join here ; www.coinvision.finance
DM @Doc_tonia for any questions
or feedback | 926 |
| 6 | Automated Artificial Intelligence (AAI) Robot is a complete tool for trading and profit generation.
You’ll get 10% Daily Returns on investment (ROI)
Join now, it’s completely free, no hidden charges. 👇
www.coinvision.finance
Message @doc_tonia for any assistance or questions | 1 014 |
| 7 |  +1Automatic Artificial Intelligence (AAI) is always profitable, because it is 10 step ahead of human traders.
Visit wwww.coinvision.finance to get started
Send a message to @doc_tonia for any questions or enquiry | 882 |
| 8 |  +1Our investors are growing strong using AUTOMATED ARTIFICIAL INTELLIGENCE (AAI) Robot.
We payout daily, zero risks, no hidden fees!
Join now: www.coinvision.finance
Message @doc_tonia for any private questions or enquires. | 994 |
| 9 |  +1Our investors are growing strong using AUTOMATED ARTIFICIAL INTELLIGENCE (AAI) Bot.
We payout daily, zero risks, no hidden fees!
Join now: www.coinvision.finance
Message @doc_tonia for any private questions or enquires. | 1 085 |
| 10 | +1 Automated Artificial Intelligence (AAI) is the future of trading profitable trade!
Join www.coinvision.finance to be a part.
(New users get 20% first deposit bonus) | 851 |
| 11 |  +2Using our Automated Artificial Intelligence (AAI) Robot,
Todays 10% Returns on Investment was successful. Payouts were also made.
Join now 👉 www.coinvision.finance
(Newly registered users will receive 20%
First deposit bonus)
For any enquiry or questions,
Send a message to @doc_tonia | 776 |
| 12 |  +3At Coinvsion, Our investors enjoy a fixed, guaranteed, & zero risk returns of 10% Daily using our Automated Artificial Intelligence (AAI) Robot
Join Now 👉 www.coinvision.finance
(New Users Gets 20% First Deposit Bonus) | 603 |
| 13 | For example, according to DeFi Llama, Ethereum had about $120 billion in total value locked (TVL) across its DeFi protocols as of April 2022. Solana had a little more than $7 billion.
How Solana works
Solana is built for scalability, and it accomplishes that through its unique hybrid protocol. This protocol uses both the proof-of-stake consensus mechanism popular with other blockchains, as well as Solana's proof-of-history algorithm.
Proof of stake is a way to validate blockchain transactions. Validators are chosen based on the amount of crypto tokens that they've staked (pledged to the blockchain). Validators receive rewards when they confirm new blocks of transactions and add them to the blockchain.
Proof of history verifies the order of blockchain transactions and the passage of time between them. The timestamps on transactions are built into the blockchain itself. Because the time stamp is built in, validator nodes don't all need to communicate with each other to confirm transaction times.
There are a few other technical design reasons for Solana's relative speed advantages, but the end result is that proof of history helps optimize the transaction process. It cuts down on the work that validators need to do, enabling much shorter processing times.
Partnerships
The Solana ecosystem is absolutely massive, and it's constantly growing. It's home to DeFi projects, NFT marketplaces, crypto lending protocols, and Web3 apps. During 2021, the number of projects on Solana grew from 70 to more than 5,100.
Here's a selection of a few notable partners and projects:
• Solana and crypto exchange FTX worked together to build Serum, a high-speed, decentralized crypto exchange on Solana's blockchain.
• Michael Jordan launched his debut NFT collection on HEIR, a Solana-based platform.
• NFT marketplace OpenSea is now listing Solana-based NFTs. It previously only offered Ethereum-based NFTs.
• Audius, an app designed to build a decentralized music community, chose to move to Solana. It researched more than 20 blockchain platforms before deciding.
• Solana also partners with the Arweave blockchain to permanently store large amounts of Solana's data, including transaction history and NFT data files.
Can I make passive income with Solana?
You can make passive income with Solana. Since Solana uses proof of stake to validate transactions, it gives you the opportunity to stake your crypto and earn rewards.
When you stake Solana, you pledge your SOL tokens to a validator node that checks transactions. In return, you'll receive a portion of the block rewards that the validator receives. It requires setting up a blockchain wallet and choosing a validator, but it's a good way to get more SOL tokens.
It's always worth mentioning that cryptocurrency is a very different type of passive income than cash. Like other cryptocurrencies, Solana is volatile. If the price drops, your earnings might not make up for the losses.
Unique risks
Solana's not without its issues. The most prominent is an uneven power structure, which you can see in both its initial token distribution and its validators.
Crypto research company Messari found that 48% of Solana's initial token allocation went to insiders, including the team, company, and venture capital companies. Another 13% went to the Solana Foundation.
The Solana network has well over 1,000 validators, but more than one-third of the cumulative stake is held by fewer than 25 validators. This means a relatively small number of validator nodes are responsible for verifying more than a third of Solana's transactions.
Outages have also become a concern as Solana has grown more popular. The Solana network experienced multiple outages in both 2021 and 2022, including a 48-hour outage in January 2022 that liquidated many users of the Solend lending protocol.
It takes time to stabilize a blockchain, and Solana is far from the only one to go through outages. But the frequency has attracted criticism and worried Solana supporters. | 367 |
| 14 | Solana (SOL 2.24%) is a blockchain platform known for its speed and efficiency. SOL tokens are its native cryptocurrency and are used to pay its transaction fees. Since launching in 2017, Solana has grown to become one of the largest cryptocurrencies in the world.
Because the Solana blockchain has smart contract capability, developers can use it to build decentralized apps (dApps). Its strong growth has helped establish it as a rival to other major programmable blockchains, including Ethereum (ETH 2.5%) and Cardano(ADA 3.81%).
Solana is in a competitive marketplace, but there are several reasons to be bullish on it. Read on for a detailed guide to Solana to learn more and decide if you should invest.
Image source: Getty Images.
What makes Solana unique?
The biggest draws of Solana are its fast and cheap transactions. It's reportedly able to handle 65,000 transactions per second, and the average cost per transaction is $0.00025.
Solana is able to do that because it uses proof of history, a unique algorithm to validate transactions. Most blockchains use either a proof-of-work or proof-of-stake consensus mechanism, with proof of stake being the more efficient option. Solana uses a hybrid protocol that combines proof of stake with proof of history for even faster processing.
As far as what Solana does, it's an open-source blockchain, which means that developers can use it in a variety of ways. Here are a few examples of what can be done on the Solana ecosystem:
• Minting, selling, and trading non-fungible tokens (NFTs).
• Developing decentralized finance (DeFi)platforms, such as decentralized crypto exchanges.
• Building blockchain games, including Web3games, and partnerships with big-name companies such as FTX, Lightspeed(LSPD 1.46%), and Forte.
One of the most exciting developments with Solana has been Solana Pay, a free-to-use payments framework. It allows merchants to accept payments directly from customers through the Solana network. Payments are made in stablecoins such as USD Coin(USDC -0.01%) that are designed to maintain a stable price.
By using Solana Pay, businesses can avoid high payment processing fees.
Where Solana came from
In November 2017, Anatoly Yakovenko published a white paper introducing Solana's proof-of-history concept. Yakovenko was previously a senior staff engineer at Qualcomm and a software engineer at Mesosphere and Dropbox. He went on to work with Greg Fitzgerald, Stephen Akridge, and Raj Gokal in developing a single, scalable blockchain.
The original name for their project was Loom, but Ethereum released Loom Network at the same time. To avoid confusion, the team renamed their project Solana and chose Solana Labs as the company name.
The Solana cryptocurrency was first available in 2019 during private token sales, where Solana Labs raised about $20 million. Both the Solana protocol and SOL tokens were released to the general public in 2020. The Switzerland-based Solana Foundation, which supports the Solana ecosystem today, also was founded in 2020.
Solana vs. Ethereum
Solana's biggest competitor is Ethereum, and it has been called an "Ethereum killer." Considering the popularity of each blockchain, prospective investors often wonder how the two match up.
When Ethereum launched, it used the proof-of-work consensus mechanism to validate transactions. Although proof of work was common at the time, it's not energy-efficient. Ethereum is currently in the process of transitioning to proof of stake, which is used by Solana in conjunction with its proof-of-history algorithm.
That results in a major difference in transaction processing. Solana regularly processes thousands of transactions per second and is theoretically capable of handling 65,000. Ethereum can only handle about 30 transactions per second (although once it completes its upgrades, it will reportedly be able to handle up to 100,000 per second).
Ethereum also has been around for much longer, and it's still well ahead of Solana in terms of users. | 331 |
| 15 | However, the average cost of the shares is now only $7.50/share vs. $10/share previously. Now, if the firm’s thesis is correct and the stock increases to $20/share, the position would have increased to $4,000,000. It represents a 167% return.
From this example, it is clear that buying the dip can increase the potential return, given that the original investment thesis and company fundamentals of ABC Company remain intact.
Shortcomings of Buying the Dip
While buying the dip can potentially minimize the cost of a position and increase potential returns, it can also result in a scenario where losses are magnified. At times, market participants may overreact when selling a security; however, they also can be justified in their rationale for selling.
Generally, when a security price declines, there is a valid reason why the price is decreasing. For a stock, it can be the result of lower-than-expected earnings, increased uncertainty, or a variety of other reasons. As an investor or trader, it is important to be cautious of buying the dip and have a strong rationale for why the security is mispriced.
Buying the dip is used by many investors and traders based on a preconceived notion that the price should revert to previous levels. However, it is not always the case. There are many examples of companies that have gone bankrupt, which results in stock prices of these companies going to $0/share.
Example 2
Continuing from the example above, where the investment management firm increases its position from $1,000,000 to $1,500,000 after a price decrease of ABC Company from $10/share to $5/share.
If its thesis turns out to be incorrect, and ABC Company goes to $0, the firm loses $1,500,000, losing more capital than they initially would have lost before buying the dip. | 317 |
| 16 | What is Buying the Dip?
Buying the dip is a strategy used by investors and traders that involves buying or adding to an existing long position of an asset during a period of downward price pressure, hopefully with the opportunity for the price to recover. This strategy is commonly seen for assets that are fundamentally sound but have been sold off due to larger market sentiment or overreaction.
Investors “buy the dip” and increase their exposure to that asset when prices are depressed in anticipation of prices recovering and earning larger returns. Disciplined and prudent investors base their decision on when to buy the dip on careful research and analysis as the downside risk for buying the dip is quite high as the investor is increasing their overall position on that particular asset.
Summary
• Buying the dip is a term used to describe an investment strategy of buying a fundamentally sound asset when its price falls, commonly due to outside factors.
• Investors then “buy the dip” in anticipation of prices recovering for that asset.
• As buying the dip increases an investor’s position, the returns can be higher if prices increase, but the risk of a potential loss can also be greater if prices fall.
When is Buying the Dip Successful?
Buying the dip can be advantageous when the long-term price trend of a security is positive, as the average cost of building a position decreases when there is a dip. However, it can be disadvantageous in a similar vein when the price declines persist for an extended period of time and the position has increased in size, raising the potential loss.
Using stocks as an example, the stock market has been known to overreact to news flow at certain periods, especially when there is high uncertainty. A prime example was in February and March 2020 at the onset of the COVID-19 pandemic, where economic shutdowns caused prices within the stock market to draw down significantly. The S&P 500 Index, which is a popular index that tracks the stock performance of 500 large U.S companies, saw a ~31% decline in price before hitting bottom and rallying subsequently.
While it is possible to experience a rebound after a significant price decrease, it is also just as likely for the asset price to continue declining. In the example above, the stock market negatively reacted to the uncertainty of the COVID-19 pandemic. However, fiscal and monetary stimulus, in addition to increased data and research on the virus itself, alleviated concerns in the stock market quickly.
Without the economic stimulus, or if the virus was more lethal than anticipated, the stock market might not have rebounded as quickly. There are many cases where a particular security does not recover and continues to drop, leading to increased losses. Therefore, investors and traders should be wary of such situations when considering to “buy the dip.”
Benefits of Buying the Dip – Cost Minimization
As mentioned above, buying the dip is an effective way of decreasing the average cost of a position in a particular security. It can amplify potential returns if the price ends up increasing.
Example 1
An investment management firm is considering investing in ABC Company.
ABC Company’s common stock is currently trading at $10/share, and the investment management firm believes its intrinsic value is $20/share.
With this, the firm goes long 100,000 shares, building a position of $1,000,000 in ABC Company common stock. If its thesis is correct and the stock increases to $20/share, the position would have increased to $2,000,000. It represents a 100% return.
Now, consider an exogenous event that causes the price of the stock of ABC Company to decline to $5/share. However, the investment management firm still believes it should be worth $20/share as none of the fundamentals for ABC Company, its industry, nor the competitive landscape has changed.
The firm can “buy the dip” and increase its position. It proceeds to go long another 100,000 shares, now with a position of $1,500,000 (initial $1,000,000 position + new $500,000 position). | 282 |
| 17 | For example, if a company is expected to report positive earnings, the market prices the asset upwards.
The principle is close to what’s nowadays known as the Efficient Market Hypothesis (EMH), which states that asset prices reflect all available information and trade at their fair value on stock exchanges.
There are three kinds of trends in the market
Dow’s theory also suggests that markets experience three kinds of trends. Primary trends are major market movements and tend to last months or years. Primary trends can either be a bull market, meaning that the prices of assets are moving up over time or a bear market, meaning they are moving down over time.
Within these primary trends, there are secondary ones, which may work against the primary trend. The secondary trends can be pullbacks in bull markets, where asset prices temporarily move back, or rallies in bear markets, where prices temporarily move up before continuing their downtrend.
There are also tertiary trends, which tend to last a week or a little over a week and are often just considered noise in the market that could be ignored, as it won’t affect long-term movements.
Primary trends have three phases
Traders can find opportunities by examining different trends. For example, during a bullish primary trend, traders can take advantage of a bearish secondary trend to buy an asset at a lower price before it keeps on rising. Recognizing these trends is difficult, especially taking into account the Dow theory as it says primary trends have three phases.
The first phase, the accumulation phase for a bull market and the distribution phase for a bear market, precedes a contrary trend and occurs when market sentiment is still predominantly negative on a bull market or positive during a bear market. During this phase, smart traders understand that a new trend is starting and either accumulate ahead of an upward movement or distribute ahead of a downward direction movement.
The second phase is called the public participation phase. During this phase, the wider market realizes a new primary trend has begun and either starts buying more assets to take advantage of upward price movements or selling to cut losses in downward movements. The second phase sees prices increase or decrease rapidly.
The final phase is called the excess phase during bull markets, and the panic phase during bear markets. During the excess or panic phase, the wider public continues to speculate while the trend is about to end. Market participants who understand this phase start selling in anticipation of a bearish primary phase or buying in anticipation of a bullish primary phase. | 256 |
| 18 | Why reading cryptocurrency charts is essential for traders
Reading cryptocurrency charts is essential for traders to find the best opportunities in the market, as technical analysis can help investors to identify market trends and predict the future price movements of an asset.
Technical analysis refers to analyzing statistical trends gathered over time to understand how the supply and demand of a specific asset influence its future price changes. Reading crypto market charts can help investors to make well-informed decisions based on when they expect bullish and bearish movements to end.
A bullish movement refers to an upward price movement pushed by bulls, which are an asset’s buyers. A bearish movement is a downward price movement stomped on by the bears, which are the asset’s sellers. Technical analysis can help traders to evaluate price trends and patterns on charts to find trading opportunities. The best crypto charts help to monitor market movements, but they do have some caveats.
What is technical analysis?
“Technical'' refers to analyzing the past trading activity and price variations of an asset, which according to technical analysts, might be useful predictors of future price movements of an asset. It can be used for any asset with historical trading data, which means stocks, futures, commodities, currencies and cryptocurrencies.
Technical analysis was first introduced by Charles Dow, the founder and editor of the Wall Street Journal and the co-founder of Dow Jones & Company. Dow was partly responsible for the creation of the first stock index, which was the Dow Jones Transportation Index (DJT).
Dow’s ideas were written over a series of editorials published in the Wall Street Journal, and after he passed away, were compiled to create what is now known as the Dow theory. Technical analysis, it’s worth noting, has since evolved through years of research to include the patterns and signals we know now.
The validity of technical analysis depends on whether the market has priced in all known information about a given asset, implying that the asset is fairly valued based on that information. Traders using technical analysis who employ market psychology believe that history will eventually repeat itself.
Technical analysts may incorporate fundamental analysis into their trading strategy to determine whether an asset is worth approaching and complement their decisions with analysis of trading signals to know when to buy and when to sell to maximize profit. Fundamental analysis is the study of financial information affecting an asset’s price to predict its potential growth. For a company’s shares, fundamental analysis may include looking into its earnings, industry performance, and brand value.
As technical analysts look to identify bullish and bearish price movements to help traders make more informed decisions.
Dow theory and the six tenets of Dow theory
Charles Dow helped to create the first stock market index in 1884. The creation of this index was followed by the creation of the Dow Jones Industrial Average (DJIA), which is a price-weighted index tracking the 30 largest publicly traded companies in the United States. Dow believed the stock market was a reliable way to measure business conditions within the economy and that by analyzing it, it was possible to identify major market trends.
Dow’s theory has undergone some changes thanks to contributions from several other analysts, including William Hamilton, Robert Thea and Richard Russell. Over time, some aspects of Dow’s theory lost emphasis, including its focus on the transportation sector. While traders still track the DJT, it’s not seen as a primary market index, while the DJIA is.
The theory has six main components known as the six tenets of Dow theory. Let’s go over them one by one in the sections below.
The market reflects everything
The first tenet of the Dow theory is one of the core principles of technical analysis: that the market reflects all available information in the prices of assets, and prices such information accordingly. | 232 |
| 19 | What are meme coins?
Meme coins are cryptocurrencies that were essentially created as a joke. That was certainly the inspiration for the creation of Dogecoin. Given the substantial returns that Dogecoin has delivered to early investors, a series of copycat dog coins have sprung up. The motive for the creation of these copycat meme coins likely has more to do with the desire for high returns, rather than as a joke.
Some meme coins run on their own blockchains, powered by their own decentralized network of computers. Others run as tokens on top of other cryptocurrency networks — for example, as ERC-20 tokens on the Ethereum network.
The original meme coin: Dogecoin
The first meme coin ever created was Dogecoin. Software developers Billy Markus and Jackson Palmer launched Dogecoin’s mainnet in 2013 as a fork of Litecoin. Markus initially came up with the idea, getting his inspiration from a popular internet Shiba Inu meme. Palmer later helped Markus turn his idea into a workable cryptocurrency.
At the end of 2013, Dogecoin was trading on cryptocurrency exchanges in the $0.0003–7 region. In early 2014, it surpassed $0.001 for the first time. It took more than four years for Dogecoin to surpass $0.01 for the first time in mid-2018. Then, in May 2021, it briefly reached around $0.74 per coin. That represented a more than 1000x return versus its early 2014 levels.
As of June 2023 Dogecoin’s market capitalization — the market value of all outstanding tokens — is around $21.3 billion.
What makes meme coins so popular?
SHIB/USDT Chart by TradingView
There is no definitive answer to this question. Different investors take an interest in meme coins for different reasons. Many investors find meme coins attractive due to the potential for rapid gains. Popular meme coins like Dogecoin and Shiba Inu have a well-documented history of posting rapid, exponential price gains.
Others enjoy the fact that meme coins represent crypto’s light-hearted side. Many might be a fan of the specific meme, dog, or another animal that the meme coin was inspired by. For these investors, the meme coin might serve as more of a collector’s item.
What are the risks of investing in meme coins?
1. Volatility
Meme coins are generally viewed as lacking in utility when compared to the major cryptocurrencies such as bitcoin and ethereum. Their utility mainly comes from the fact that they function as a collectors’ item. According to critics, this means they have no, or at least very little, fundamental value.
As a result, meme coin prices tend to rise and fall in tandem with the swings in emotion of their associated communities, and alongside the whims of the broader retail investment community. That means their prices can be extremely volatile and unpredictable. Adding to this volatility is the fact that meme coin distribution tends to be highly unequal. A few investors tend to hold a substantial market share, giving them an outsized ability to affect the market.
Prices can surge amid a sudden surge in Fear Of Missing Out (FOMO). Something as simple as a celebrity endorsement can trigger FOMO. Back in early 2021, billionaire Elon Musk frequently touted his support for Dogecoin. This helped pump the cryptocurrency as much as 20,000% over the year. | 347 |
| 20 | What Is Bitcoin Dollar-Cost Averaging?
Dollar-cost averaging bitcoin, also called Bitcoin DCA, is an investment strategy where you buy a fixed amount of BTC at regular intervals, no matter the price.
You can set up a specific amount of money to invest periodically, such as weekly or monthly, and stick to this schedule over time. This means you reduce the impact of short-term market volatility, as the specified amount buys more BTC when prices are low and less when prices are high, ultimately averaging out the cost per BTC. Hence, the term cost-averaging.
The result is a disciplined and low-stress investment approach. By removing the need to make decisions based on short-term price movements (i.e., trying to time the market), you can alleviate emotional reactions to market movements while growing your bitcoin investment over time.
How Does Bitcoin DCA Work?
Now, let’s take a look at how you can dollar-cost average bitcoin. Here’s how it works.
Set a budget: First, figure out how much you’re comfortable investing regularly. Some bitcoin savings apps allow you to start with as little as $10, but it’s entirely up to you how much you want to invest in the digital currency every week or month. Decide on the intervals: It could be every week, bi-weekly, or once a month. Again, it’s totally up to you. Find a good platform: You need a place to buy your BTC. So, find a reputable bitcoin exchange or app that allows you to automatically save in bitcoin using recurring payments. Examples of popular Bitcoin DCA apps include Swan (US), Relai (Europe), and Bitnob (Africa). Start stacking sats: Once you have registered for a Bitcoin DCA platform, set up regular bank transfers, and the app purchases bitcoin for you automatically at regular intervals based on the predetermined settings you have decided. Keep calm, stack, and HODL: As your Bitcoin savings app regularly buys bitcoin for you, make sure the bitcoin wallet you use is a secure, non-custodial wallet (a wallet where only you have access to the private keys) to ensure you can “HODL” your bitcoin investment safely for the long-term.
Why Is “Stacking Sats” With Bitcoin DCA So Popular?
Stacking sats is Bitcoin community jargon that refers to buying small amounts of bitcoin. Sats is short for satoshis, the smallest denomination of bitcoin. One satoshi is one hundred millionth of one bitcoin.
Anyone can do it: Dollar-cost averaging bitcoin is pretty straightforward and easy to understand. You don’t need extensive financial or cryptocurrency expertise to get started. No need to attempt to time the market: Trying to buy (or sell) just at the right time is almost impossible. That is the case for professionals and as well newcomers. So instead of obsessing over bitcoin price charts, auto-saving in bitcoin using dollar-cost averaging alleviates the headache and stress of figuring out the right time to buy. Stay cool, emotionally: By automatically saving in bitcoin, you can prevent yourself from panic buying or panic selling due to market volatility. If regularly investing in bitcoin for the long term is part of your investment strategy, then you can set it and forget it and don’t need to check the price of bitcoin every day. Start small, dream big: Bitcoin dollar-cost averaging allows you to build your bitcoin investment over time, even if you only have a small amount of money available to invest. If you continue to stack sats for several years, your small weekly or monthly bitcoin purchases can grow into sizable bitcoin savings.
Bitcoin DCA is an easy and simple way to invest in BTC without stressing over short-term price movements. Moreover, it allows anyone (even those with small investment capital) to start investing in the world’s leading digital asset.
But remember, investing in BTC has its risks, and you shouldn’t invest all your savings. Having said that, with a long-term investment horizon in mind, Bitcoin DCA could turn out to be a wise way to invest in bitcoin. | 175 |
