Most crypto investors have adopted dollar-cost averaging (DCA) as a strategy, according to a recent survey by the US exchange Kraken. The study revealed that 83% of participants have implemented DCA, with 59% considering it their main investment approach.

"Dollar-cost averaging has persisted as a strategy for 75 years since it became popular, and I believe that's for a good reason," said Mark Greenberg, Global Head of Asset Growth and Management at Kraken. "As survey participants highlighted, DCA can help reduce emotional influences on investment decisions, emphasizing long-term perspectives, especially vital in the fast-changing cryptocurrency market."

DCA involves acquiring an asset over time through several purchases instead of a lump-sum buy. The survey, with 1,109 crypto investors, found that DCA is favored for multiple reasons. About 46% claim it protects against market volatility, while 24% appreciate its support for consistent investment habits, and 12% value its capacity to diminish emotional biases during decision-making.

Income level significantly influences perspectives on DCA benefits. Investors earning less than $50,000 emphasize the importance of fostering consistent habits, while those earning over $50,000 prioritize mitigating volatility impacts. The findings suggest that lower-income investors may require additional support for effective investment decisions and regular contributions without emotional distraction. Higher-income individuals tend to reinforce DCA strategies during market downturns, while their lower-income counterparts may pause trading or sell off to cut losses.

Surprisingly, the survey found that nearly 74% of crypto investors monitor markets more closely than traditional investors, particularly older individuals. 66% of respondents aged 45 to 60 analyze crypto significantly more often than traditional markets, contrasting with only 33% of younger investors in their twenties.