I always believe DCA works both ways. You have to DCA in when price is under your perceived fair value and out vice versa. Many people just talk about DCA in but didn't mention the exit strategy to lock in your profits
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I always believe DCA works both ways. You have to DCA in when price is under your perceived fair value and out vice versa. Many people just talk about DCA in but didn't mention the exit strategy to lock in your profits
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So your DCA method has an extra element which is the valuation portion.
FV is simpler to apply to financial stocks. But how do we calculate FV for a cryptocurrency. Fear & greed index?
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Crypto is still a very young asset class and there is no definitive way to determine fair value. I think the fear & greed index is one to watch. In addition, I think the MVRV (market value/realized value) is also a good way to gauge if the current price is overvalued.
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