INVESTMENT STRATEGY
At a broad level, our portfolio strategy considers an allocation of 70% into Bitcoin and 30% for altcoins.
We intend to use a dollar-cost-averaging (DCA) investment strategy. This involves making investments of the same amount in a target asset at regular intervals over a set period of time. This method provides a disciplined approach to investment while making it easier to deal with market and economic uncertainty.
Key advantages of DCA:
- DCA allows a systematic accumulation of a target asset over time, reducing risk and volatility exposure.
- DCA is a sound strategy to grow an investment position while decreasing downside risk.
- DCA mitigates the risk of poorly timed purchases and the “fear of missing out” (FOMO) phenomenon.
- Regular smaller investments into a target asset through a DCA strategy can potentially yield better results over a long-term investment horizon than a big one-time investment as DCA smooths out the market’s highs and lows.