alts big dump 30% Bitcoin Auto-Invest strategy becomes a good hedge.

Recently, the Crypto Assets market has undergone significant changes, leading many investors to have doubts about alts. However, from another perspective, this market adjustment may also be a positive signal that helps eliminate poor-quality projects and leaves behind truly valuable assets.

Currently, most alts have experienced a decline of over 30%, while mainstream Crypto Assets, although affected, still serve as a market barometer. This situation has sounded the alarm for investors: do not invest all your funds into a single coin, but rather keep about 50% of your funds allocated to mainstream Crypto Assets like Bitcoin and Ethereum.

For investors who want to participate in mainstream Crypto Assets investment, a viable strategy is to invest in Bitcoin and Ethereum regularly. This approach differs from traditional speculative trading, as it does not seek to time the market but instead involves buying according to a set schedule, regardless of price fluctuations.

The advantage of a dollar-cost averaging strategy is that, in the long run, the investment cost will approach the average price over the entire investment period. Since the rapid rise phases in the Crypto Assets market are usually short, and most of the time the prices are within a relatively reasonable range, this makes the dollar-cost averaging strategy more attractive.

However, dollar-cost averaging also has some limitations. It cannot guarantee profitability at any given starting point or within any investment period. For example, a 5-month dollar-cost averaging starting from December 2021 may face losses. An extreme example is that if the Bitcoin price falls below $28,000, investors who have been dollar-cost averaging Bitcoin for nearly 3 years may incur losses.

Therefore, the key to the dollar-cost averaging strategy lies in selecting assets that are favored for the long term and having the patience to wait for the next cycle high point. Only assets that appreciate in the long term can offset the impact of short-term market fluctuations.

When implementing a dollar-cost averaging strategy, it is recommended to adopt a fixed time and fixed amount approach, choosing to invest once a month or once a week. Since you have chosen dollar-cost averaging, you should try to avoid making subjective judgments about market timing and reduce decisions to temporarily increase or decrease the investment amount. In the long run, the cost of a single investment is not the most critical factor.

The current market environment may be an appropriate time to start dollar-cost averaging. Each time there is a significant drop or a decline of more than 5000-10000 points, it can be seen as the starting point for dollar-cost averaging.

The Crypto Assets market is full of opportunities and challenges, requiring investors to maintain rationality and a long-term perspective. Through reasonable investment strategies and risk management, investors can expect to achieve considerable returns in this emerging market.