[Stock and Cryptocurrency Investment Return Maximization Methods] DCA Method Analysis + How to Easily Use Installment Buying on Exchanges

Hello, this is SEPOWER!

Today, I'd like to introduce you to Dollar-Cost Averaging (DCA), one of the investment methods.

Those of you who have invested in the volatile cryptocurrency market know that as you buy, sell, and switch to other assets, you may find your assets decreasing over time.

So, how can we avoid being swayed by cryptocurrency volatility, focus on value, invest consistently, and mitigate risks?

In such cases, I recommend Dollar-Cost Averaging. It's a method to maximize returns stably by lowering the average purchase price and accumulating fundamentally sound coins, in anticipation of future price increases.

I will introduce the details below.

Those who are investing in coins should read this and consider DCA as well.

DCA is the best feasible investment strategy

DCA (Dollar Cost Averaging) is an investment method where you invest a fixed amount of money over a certain period of time, regardless of market trends, to lower the average purchase price. Benjamin Graham, the founder of value investing, first mentioned this in his 1949 book, *The Intelligent Investor*.

In contrast, Market Timing is a strategy where you decide when to invest based on market trends, which is a commonly used investment method in the cryptocurrency market.

Under the following assumptions, the results of comparing DCA with various market timing strategies showed that the DCA strategy achieved superior returns and Sharpe ratios overall. In particular, we believe that DCA is a more realistic and feasible investment strategy that does not rely on luck, thus highlighting its practical value.

DCA helps overcome cognitive biases

DCA helps overcome cognitive biases that hinder rational investment decisions, guiding you to make and implement sound investment choices. While the benefits of DCA are difficult to quantify, it is the primary reason why it has become the preferred investment strategy among professional asset managers.

DCA reduces the damage from erroneous decisions stemming from cognitive biases that investors typically experience, such as herding behavior, anchoring, loss/regret aversion, and extrapolation bias. It can also be used as a systematic capital allocation strategy that is not driven by emotions, allowing loss-averse investors to take appropriate risks.

DCA strategy is even more effective in the volatile cryptocurrency market

Considering the typical decision-making patterns of ordinary investors and the high price volatility of cryptocurrencies, Korbit believes that the use of DCA in the cryptocurrency market is even more crucial than in the stock market. We often see securities firms offering installment investment services in the stock market to help investors easily implement the DCA strategy.

Using such services in the cryptocurrency market would help reduce the frequent erroneous investment decisions that are characteristic of a volatile market. The Smartu service launched by Korbit on February 28th can be a useful tool in this context.

• Coin Accumulation Service Guide

You can set your desired purchase amount within the limit of 1 million KRW per order and a total order amount of 3 million KRW per digital asset, according to your desired cycle: daily, weekly, or monthly.

You can apply for up to 10 automatic orders, and create orders for various assets to accumulate them steadily. The cycle, amount, accumulated amount, and accumulated quantity of ongoing accumulation can be checked in the [Accumulation History] menu.

Through the coin accumulation service, you can expect the DCA (Dollar Cost Averaging) effect of lowering the average purchase price by purchasing regularly in installments.

🌟 Utilizing the Coin DCA Feature on Korbit

Apparently, the DCA feature that Upbit recently added has been available on Korbit from the start. It seems that you can set the cycle and time, and it supports 4 coins, which is slightly more than Upbit.

To briefly explain DCA, it's a method of investing at regular intervals with a fixed time and amount. It's a widely used strategy for achieving stable long-term returns.

If you're planning to use DCA, it might be a good idea to sign up for Korbit.

☑️ Supported Coins

• Bitcoin (BTC)
• Ethereum (ETH)
• Ripple (XRP)
• Solana (SOL)

⚡️ How to Participate

1. Korbit (https://exchange.korbit.co.kr/sign-up/?referral_code=C4FE85)
Sign up after visiting the site.
2. Service at the top -> Installment Purchase
3. Set up DCA including purchase cycle, time, and coin.

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