Majority of Crypto Investors Embrace This Strategy, Says Kraken Survey

A recent survey conducted by the cryptocurrency exchange Kraken reveals that a significant number of investors in the digital asset market are adopting a common investment strategy to gain exposure.

According to the findings, 59% of participants are utilizing a dollar cost averaging (DCA) approach for their cryptocurrency investments.

DCA is a strategy where investors consistently purchase assets over time, regardless of their price, instead of trying to predict market movements. Kraken notes that this method allows for a “set it and forget it” approach, enabling investors to gradually accumulate cryptocurrency while minimizing the effects of short-term price fluctuations and reducing emotional decision-making.

The survey indicated that 83.53% of crypto investors have implemented dollar-cost averaging at some point, with 59% identifying it as their main investment strategy. Respondents highlighted several key benefits of DCA, including protection against market volatility, decreased emotional involvement in investing, and the promotion of disciplined investing habits.

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Additionally, the survey found that investors earning over $100,000 annually tend to exhibit greater confidence in their investment strategies and are less likely to change their plans compared to those with lower incomes. In contrast, lower-income investors are more inclined to attempt market timing rather than maintain a consistent DCA approach.

Kraken’s data suggests that higher earners demonstrate a stronger commitment to their trading strategies, with 62.89% of those making more than $100,000 expressing a “very strong” confidence in their ability to adhere to their plans during market fluctuations. This is a notable increase from just 30% among those earning less than $100,000.

Conversely, lower-income investors may be more susceptible to losses due to limited cash reserves and disposable income, which can lead to tough decisions about exiting investments during unfavorable market conditions. In 2022, only 78% of individuals earning between $25,000 and $49,999 reported they could cover their monthly expenses, compared to 94% of those with incomes exceeding $100,000.

Alexander Stefanov

With over 8 years of experience in the cryptocurrency and blockchain industry, Alexander is a seasoned content creator and market analyst dedicated to making digital assets more accessible and understandable. He specializes in breaking down complex crypto trends, analyzing market movements, and producing insightful content aimed at educating both newcomers and seasoned investors. Alexander has built a reputation for delivering timely and accurate analysis, while keeping a close eye on regulatory developments, emerging technologies, and macroeconomic trends that shape the future of digital finance. His work is rooted in a passion for innovation and a firm belief that widespread education is key to accelerating global crypto adoption.