Crypto survey finds 59% of investors use dollar-cost averaging

According to a survey by crypto exchange Kraken, nearly 60% of over 1,000 surveyed crypto investors employ dollar-cost averaging (DCA) as their primary investment strategy. 

Published on October 7, the survey collected data from 1,109 participants and highlighted the popularity of DCA among both high and low-income investors.

The survey revealed that 83.5% of the respondents had used DCA at some point, with 59% continuing to use it as their main strategy. 

DCA involves purchasing assets at regular intervals, regardless of market price, helping investors avoid emotional decisions and mitigate short-term price fluctuations, according to Kraken's researchers.

Income levels also influenced how respondents viewed DCA’s benefits. 

Investors earning less than $50,000 saw consistent investment habits as the greatest advantage, while those earning over $50,000, particularly in the $175,000 to $199,000 range, valued the reduction of market volatility.

While 46% cited DCA’s ability to hedge against volatility as a key benefit, around 12% believed it removed emotions from trading. 

Kraken researchers emphasised that wealthier investors were more likely to stick to their trading strategies during market turbulence. 

Specifically, 63% of respondents earning over $100,000 expressed confidence in adhering to their plans despite market fluctuations.

However, the survey also indicated that lower-income investors, especially those earning under $100,000, were more inclined to attempt market timing, a riskier strategy. 

Younger investors between the ages of 18 and 29 favored these riskier approaches, while older investors aged over 45 monitored crypto markets more closely than their younger counterparts.

Kraken researchers acknowledged that while DCA is not without flaws, it reduces the stress of timing the market and helps prevent emotional decision-making during volatile periods.