Hello UMR fighters! Have you ever heard about investing in Bitcoin but thought, "wow, the capital is huge"? Or are you confused about when is the right time to buy Bitcoin? Well, this article is not to lecture you, but to invite you to get acquainted with an investment strategy for Bitcoin that is perfect for us with UMR salaries: Dollar Cost Averaging (DCA).
What is DCA? Why Does It Sound Complicated?
Calm down, DCA is actually very simple. In short, DCA is an investment strategy where you regularly buy Bitcoin (or other assets) with the same amount of money, at predetermined time intervals, regardless of whether Bitcoin's price is going up or down.
For example, you decide that every payday, on the 2nd or 25th, you will set aside Rp200,000 to buy Bitcoin. Whether the price of Bitcoin is 1M, Rp500 million, or Rp300 million per coin, you still buy with Rp200,000. Flexible, right? You can adjust it to your financial capability.
Why is DCA Suitable for UMR Bitcoin Investors?
Reducing Stress and Worrying About Prices: This is the most important thing! With DCA, you don’t have to worry about "wow, Bitcoin’s price is high now, what if it drops later?" or "oh no, why is Bitcoin constantly dropping, maybe I should wait?". You just need to be disciplined and buy according to your schedule. When prices rise, you still buy. When prices fall, you also still buy.
Minimizing the Risk of Wrong Purchases: Many beginners lose money because they are carried away by emotions. Buying when prices are at a high "hype", and then shortly after the price drops. With DCA, you spread your purchases over time. So, even if there is a price drop, your average purchase price will be better in the long run. It's like getting a "discount" when Bitcoin's price drops.
Investing Becomes More Affordable: This is the key for us who earn UMR. You don’t need to deposit millions of rupiah at once. You can start with a small amount, even Rp50,000 or Rp100,000 per week/month, according to your capability. The important thing is to be routine and consistent.
Building a Habit of Saving and Investing: Unknowingly, by applying DCA, you develop a good habit: setting aside money for investment. This is very important for your financial future!
How to Start DCA Bitcoin?
Determine a Specific Amount: Decide how much money you want to invest each month. Remember, adjust it to your financial capability. Don't let it interfere with your basic needs!
Determine Purchase Frequency: Is it every week, every two weeks, or every month after payday? Choose what is most comfortable for you.
Choose a Trusted Crypto Exchange Platform: Make sure you choose a platform that is registered and supervised by Bappebti. Look for one with an easy-to-use DCA feature or at least facilitates recurring purchases.
Discipline and Consistency: This is the hardest but most important part. The key to successful DCA is discipline. Keep investing according to schedule, even when the market is volatile.
DCA is Not Magic, Not Sorcery!
It is important to remember that DCA is not a strategy that promises instant profits or doubling your money overnight. Investing in Bitcoin, like any other investment, still carries risks. The goal of DCA is to minimize the risks of price fluctuations and help you invest regularly in the long term.
With patience and discipline, the DCA strategy can be one of your ninja paths to start investing in Bitcoin, even with a UMR income. Let's start learning more and take the first step towards your financial freedom!