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DCA Gains Ground, Especially Among Higher-Earners

Kraken’s latest survey has confirmed what many crypto investors are already whispering in the digital halls. The exchange found that 83.5% of crypto investors have dabbled in dollar-cost averaging (DCA), with 59% keeping it as their mainstay strategy. Kraken’s data reveals a sharp divide based on income, with high-earners leaning heavily on DCA, while those earning less are tempted to time the market.

DCA, for the uninitiated, is the strategy of buying assets like Bitcoin or Ethereum at set intervals, regardless of the market price. This technique, according to Kraken’s researchers, cuts through the emotional fog that clouds judgment and neutralizes short-term price spikes and plunges.

Income and Strategy Split

The research exposes a key difference in how income influences strategy. Those earning under $50,000 mostly praised DCA’s role in promoting disciplined, consistent investing habits. But the high-rollers, those earning over $175,000, saw DCA as their safety net against market whiplash. Almost 70% of this elite group zeroed in on DCA’s ability to smooth out volatility, keeping them zen while the markets churned.

But it’s not all rosy. Just over 8% of Kraken’s respondents confessed they stayed on the DCA wagon even when losses loomed large. In contrast, those wielding other strategies, such as market timing, seemed more willing to ride out the storms. Kraken researchers observed that bigger earners were more likely to stick to their plans when volatility hit, with over 63% of respondents making more than $100,000 flexing their resolve.

Risk-Takers vs. Cautious Observers

Younger investors, the survey showed, aren’t exactly playing it safe. Those aged 18 to 29 are ditching DCA and running after riskier market-timing tactics. Half of them try to call the market’s ups and downs, while older investors over 45 stay glued to their screens, monitoring the crypto space more often than they do traditional assets. In contrast, only a third of young traders admit to watching the market closely.

Kraken’s final verdict? DCA is not without flaws, but it’s still a stress buffer for those looking to dodge emotional investment decisions.