Majority of Crypto Investors Favor Dollar-Cost Averaging, Kraken Survey Reveals

A considerable proportion of bitcoin investors favor dollar-cost averaging (DCA) as their preferred method, according to a recent Kraken survey. A noteworthy 83.53% of the 1,109 participants reported using DCA at least once during their investing experience, and 59% of them verified using it as their primary approach for purchasing cryptocurrency.

Why DCA Is a Popular Choice

Dollar-cost averaging involves purchasing a fixed amount of cryptocurrency at regular intervals, regardless of market conditions. This approach helps investors develop a “set it and forget it” mindset, gradually accumulating crypto holdings over time. According to the survey, 46.13% of respondents believe the biggest benefit of DCA is its ability to minimize the impact of market volatility.

In addition, nearly 24% of investors appreciate how DCA encourages consistent investing habits. Another 12% mentioned that DCA helps eliminate emotional decision-making, a key factor in navigating the highly fluctuating crypto markets. Kraken explained, “While DCA is generally seen as a way to develop a consistent investment approach and manage emotional reactions to market changes, most crypto investors believe the DCA strategy plays a more important role.”

Although DCA is the most common approach, some investors choose to use market timing. The second most common tactic is market timing, which entails purchasing or selling cryptocurrency depending on projected future prices. It’s interesting to note that investors under the age of 29 seem to favor it the most. While 22.77% of younger investors continue to find value in DCA, this group seems less oriented toward the slower process of wealth growth associated with DCA.

The survey also indicated that 73.69% of participants spend more time monitoring crypto markets than traditional financial markets, with senior investors (aged 45 and above) more regularly examining crypto movements.