One method to lower your investment risk

Cryptocurrency is created through crypto mining, which you can do with your computer at home. Unfortunately, this has given cyber criminals a new target as they can secretly use your computer to mine crypto without your knowledge.

And we recently discovered that a popular antivirus company added crypto mining to its users’ devices and took a percentage as a fee. Tap or click here to view our report.

Crypto prices are volatile so you need to be careful when venturing into this form of investing. We’ve got some tips to get you started.

Using dollar cost averaging to reduce risk

When you buy regular stocks, you can set up buy orders to activate automatically when certain prices are met. You can refine these purchases over time using the dollar cost average. This also works for cryptocurrency.

Instead of investing a lump sum in one commodity and risk falling victim to volatility, you can invest in increments. Pick an amount you want to eventually invest and buy smaller amounts of crypto over time for an equal price.

RELATED: How One Crypto Investor Lost Everything

How it works

Let’s say you want to put $5,000 in crypto. You can invest it all at once, but if a major dip occurs, you could lose most of your money. Instead, break it down into smaller purchases over time. For example, you can put in $500 every month for Bitcoin, Etherium or Solana. This happens automatically when you set up recurring purchases.

Over a longer period of time, the dollar cost average tends to have lower risk and therefore greater reward. This is a long-term strategy that helps protect against market fluctuations.

Dollar cost averaging takes the stress out of trying to time the crypto market, which is essentially impossible.

Many cryptocurrency exchanges such as: Binance, Coinbase and twin lets you set up recurring purchases. Coinbase even offers a tutorial in its app to learn about dollar cost averaging.

Developers and companies sometimes broadcast crypto to their early users and investors, but be careful if you receive crypto seemingly out of nowhere. Tap or click here how scammers use the gift of crypto to attack new victims.

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