Dollar-cost averaging is almost similar to Systematic Investment Plans (SIPs). In other words, dollar-cost averaging is a simple investment strategy where the investors break up the total investment amount and invest it regularly in fixed time intervals without worrying about the current price.
How to Dollar-cost average?
Follow these 3 simple steps:
Note: The amount, the breakup, and the period of investing may differ from person to person, so make sure you analyze your investing style and choose the right fit for you.
Tracking the whales basically means analyzing the bulk activity and finding out where the big money is flowing. Remember, whales know what they are doing and they leave their footprints. We just need to follow that.
Tracking whales can help you to:
How to track whales?
Method 1: Using various whale tracking websites
These websites use bots and APIs to fetch the on-chain data from the blockchain explorer and extract the bulk transactions which might mean something. Some whale tracking websites are:
Method 2: Tracking the whale's wallet address
Tracking a whale's wallet basically means identifying what investments do particular whales have and when are they moving their money. This can help investors like us find golden gems. Now you might wonder how do I find a whale's wallet address? Follow these steps:
Go to etherscan.
Search for any token ( I usually search for USDT)
Go to the holder's section
See the wallet address of major holders (I would recommend leaving the top 10 as they are usually owned by the team)
Once you have the wallet address, select any portfolio tracking website and scan their investments. I usually use Zapper.
<aside> ⚡ Note: This will only help you make a watchlist, you will still need to analyze before investing.
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An automatic investment plan is a type of investment program where investors add money to a wallet and a bot automatically invests the amount at regular intervals, triggered by a predefined strategy. Funds can be automatically deducted from an individual's paycheck or paid out from a personal account.
This can be very useful to "Buy the dips." Investors can set a percentage drop at which the bot instantly purchases the coin. This becomes very helpful in averaging out the total investment.
I like to use the "Vauld" app to set up my AIPs.
"Buy the dips" means purchasing an asset after it has dropped in price. The belief here is that the new lower price represents a bargain as the "dip" is only a short-term blip and the asset, with time, is likely to bounce back and increase in value.
Buying the dip basically means buying a certain asset after it has dropped in price. Investors believe that a fundamentally strong asset is bound to bounce back and currently they are getting it at a discounted price. Buying the dips also helps the investors to average out their investment price and make strong gains in the future.