Bitcoin has had a whirlwind few months, surpassing the $60,000 mark for the first time ever in March before promptly tumbling down near $30,000 in less than three months.
The volatility, stemming from a wide range of factors including Elon Musk’s tweets and a FBI raid on Russian hackers, has pummeled the value of the digital token, which was drawing in waves of newcomers with its lightning-fast growth.
But despite the volatility of the coin, some investors have continued to steadily build their holdings. That includes Adam Traidman, CEO and co-founder of BRD, a popular crypto wallet with more than 7 million users. Traidman is a veteran of bitcoin’s massive price swings, which is why he doesn’t try to time the market.
Rather, Traidman uses a more conventional investment strategy: dollar-cost averaging.
To take advantage of dollar-cost averaging, you invest a fixed amount on a regular basis instead of buying a lump sum of stock all at once. This allows investors to avoid trying to time the market and takes the emotion out of investing.
For Traidman, that means buying a little bit of bitcoin every few days, no matter the price at the time. This, he says, helps him avoid the psychological stress of buying at, say, $60,000 only to see his investment lose 20% of its value in a day.
“Casual investors have a tendency to buy into