Survey by Kraken Reveals Most Crypto Investors Rely on One Key Strategy

According to a new survey by cryptocurrency exchange Kraken, the majority of investors in the digital asset field are using a similar approach to increase their exposure to the market. According to the survey, 59% of participants utilize dollar-cost averaging, or DCA, as their main investing strategy.

Regardless of market volatility, buying assets at regular periods is known as dollar-cost averaging, or DCA. By using this strategy, investors can stay away from the dangers of trying to time the market. Kraken claims that the reason DCA has gained popularity is that it enables investors to “set it and forget it,” gradually increasing their portfolios over time and reducing the impact of transient volatility.

Kraken’s report also states, “Our survey found that a large majority (83.53%) of crypto investors have used dollar-cost averaging, and 59% of respondents use DCA as their primary crypto investment strategy.” The strategy is praised for its ability to reduce emotional decision-making, encourage consistent investing habits, and offer protection against market swings.

Income and Investment Confidence

Kraken’s findings further reveal a correlation between income levels and confidence in investment strategies. Higher-income investors, particularly those earning over $100,000 per year, exhibit greater confidence in sticking to their plans during market volatility. The survey notes that 62.89% of these higher-income earners believe they have a “very strong” ability to adhere to their strategies, compared to just 30% of lower-income investors.

Risks are higher for investors with lower incomes since they are more likely to use market timing techniques. Since they frequently have less cash reserves, if the market moves against them, they can be forced to sell investments before they should. Kraken also makes the point that those with lesser incomes could find it more difficult to maintain their financial security during uncertain times.

The poll conducted by Kraken highlights the relationship between investing techniques and income levels, providing insight into the variables influencing decision-making and confidence in the dynamic cryptocurrency market.