Our weekly crypto derivatives analytics report delves into macro events; the current state of crypto and trading signals from spot trading volume; and futures, options and perpetual contracts.

At the start of the week, Bitcoin showed signs of decoupling from US equities. However, US president Trump's positive remarks about the US-China trade war (which had included a 145% tariff on Chinese goods) triggered a relief rally across markets. As a result, BTC has resumed moving up with US equities. 

This rally has led to a rise in short-tenor implied volatility and a recovery in BTC’s put-call skew, indicating that traders are seeking upside exposure.

Please check out the report’s highlights.

Perp open interest rises across the board

Perpetual open interest increased significantly this week across various tokens, especially ETH. Perpetual trading volumes also rose. Notably, Ap 7, 2025 recorded the highest trade volume of the month, following Trump's comment, "Forget markets for a second, we have all the advantages."

BTC option open interest shows a mixed picture; put-call skew in short tenor sends positive signals

President Trump’s recent willingness to negotiate a trade deal with China’s President Xi triggered a relief rally across asset classes, including crypto. Bitcoin had already risen 7% since Apr 21, 2025, prior to Trump's comments. Despite this rally, open interest in puts has outpaced calls, with options volume remaining relatively balanced. 

It's unclear if the demand for puts reflects a hedge against downside risks, or a bet against the upward movement. Meanwhile, perpetual funding rates are providing limited insight into sentiment. However, the recovery of the put-call skew at short tenors indicates that traders are seeking upside exposure to the rally — and are willing to pay for it.

ETH unexpectedly outperforms BTC in this relief rally

ETH's response to the recent crypto market recovery has diverged from previous trends: it outperformed BTC in spot prices, a rarity in past rallies, and open interest in calls exceeds that in puts — opposite to BTC's trend. In addition, ETH call open interest is nearly double that of puts, with calls dominating options volumes. This suggests traders anticipate ETH will reduce its significant underperformance against both BTC and other “ETH killers” like SUI and SOL. Additionally, the spot rally has led to another term structure inversion for ETH.

Advanced

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Bybit X Block Scholes crypto derivatives analytics report (Apr 24, 2025): Put-call skew recovers at short tenors, showing reviving sentiment

Explore all the hottest Bybit events happening during the week of TOKEN2049 Dubai in this article.

It’s that time of year again — TOKEN2049 Dubai is back, and the city is buzzing with excitement. As one of the most anticipated events on the crypto calendar, it’s not just about the main conference; it’s about everything happening around it, too. From side events and workshops to exclusive mixers and demo days, Bybit is showing up in full force this year. Here's your inside look at what to expect during this action-packed week.

The heart of TOKEN2049 Week, TOKEN2049 Dubai promises two full days of future-facing discussions and innovation in the world of crypto. At the center of it all is Bybit’s immersive booth experience, built on the theme 

. It’s not just a theme — it’s a vibe. Picture claw machines, 

If you’re heading to TOKEN2049 Dubai, be sure to drop by the Bybit booth (located at P33) and chat with our extraordinary Bybit team! And don’t miss your chance to grab a gacha token by scanning our QR code with Bybit Pay. You could walk away with exclusive Bybit merch! 

DMCC x VARA: Crypto regulations and business growth

Policy meets progress at this exclusive evening event co-hosted by DMCC and VARA. This gathering brings together regulators and industry leaders for an open discussion on the future of digital asset compliance and business growth in the region.

You can expect sharp insights, candid perspectives and forward-thinking dialogue about what it really takes to scale a crypto business in a regulated environment. If you care about the future of web3 in the UAE, this is one event to mark on your calendar.

Bybit After Hours: Exclusive Insights & Networking 

 is a private cocktail evening for top-tier traders and long-time supporters of Bybit. This event is equal parts networking, knowledge sharing and celebration.

 to strategic conversations with the Bybit team, this night is tailored to those who trade big and think bigger. With an invite-only guest list, it’s set to be one of the most exclusive experiences of the week.

The Crypto Hub x Bybit Crypto Ark Demo Day

 is all about bringing hands-on energy to the web3 scene. Hosted at the Crypto Ark inside Bybit’s office, this event welcomes founders, devs and crypto creatives for a casual evening of product showcases, idea exchange and light networking.

While Bybit provides the space, the real spotlight is on the community — those shaping the next wave of innovation in web3.

 from across the CIS region are gathering for a deep dive into the tools, tips and strategies that drive growth at Bybit. This meetup goes beyond surface-level sharing — expect actionable workshops covering our Bybit Affiliate program and affiliate best practices.

It’s also a chance to hear directly from Bybit product leads and regional managers, share success stories and walk away with fresh ideas to maximize conversions. 

Wunderbit x Bybit: “Hey, Trading Bot, where is my profit?”

 are here to stay — and this event is going deep into what makes them tick. Co-hosted by Wunderbit and Bybit, the evening workshop blends honest stories from real traders with expert insights on how to avoid common automation pitfalls.

From bot setups that work to the ones that quietly drain your profits, this is your chance to ask the tough questions, hear unfiltered answers — and maybe rethink how you’re running your own bot strategy.

 (RWAs) are taking center stage at the RWA Gulf Summit, a high-powered event co-hosted by Qatar National Bank, Commercial Bank International and DMZ Finance. This summit brings together bank leaders, wealth funds, participants in DIFC, institutional investors and industry pioneers to explore the evolution of tokenized finance in the Middle East and beyond.

Bybit’s Head of Financial Products Jerry Li will take the stage to discuss how 

 (CEXs) can harness RWAs for enhanced yield and 

Dubai's Pinnacle Mixer: Mantle, Mirana, Bybit and Ethena

High above the city, this mixer brings together some of the biggest names in web3 — Mantle, Mirana, Bybit and Ethena. Expect an unforgettable evening of casual chats, cross-chain connections and cocktails with the minds behind some of today’s most innovative projects.

This private event is all about experiencing Bybit Pay in action. See interactive demos, grab a sneak peek at upcoming partnerships and network over bites and drinks. It’s a rare behind-the-scenes look at the way Bybit is shaping the future of crypto payments. 

Wrapping up the week is the Bybit Institutional Symposium — a full-day event dedicated to aligning strategies with institutional clients and forging new collaborations. From macro views to product deep-dives, this conference is built to spark big conversations among serious players.

The day concludes with a gala dinner, a fitting finale to a week in which ideas, connections and innovation have taken center stage.

Intermediate

Bybit Learn Highlights What to Expect at Bybit

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Highlights: What to expect at Bybit (Apr 28–May 2, 2025)

Balance (EPT) is revolutionizing web3 gaming with evolving AI companions, blending blockchain, strategy, and intelligent gameplay in one powerful platform.

Artificial intelligence (AI) agents are a key growth area within the blockchain industry. Projects like Artificial Superintelligence Alliance (FET), 

 (AI16Z) and countless others have been essential components driving the overall crypto market. As of April 2025, the CoinGecko portal lists more than 500 cryptocurrencies within its category of AI Agents. These intelligent assistants are now helping individuals and businesses analyze markets, create textual and visual content, automate work processes and trade profitably.

There's a further area where AI agents on the blockchain are flourishing: the world of 

 gaming. In this sphere, bots and agents based on AI algorithms are helping users develop the best in-game strategies, succeed in the competitive world of play-to-earn (P2E) and overcome key challenges in complex gameplay.

Balance (EPT) is a blockchain gaming project that takes the use of 

 to a completely new level. The creation of the team at the world’s largest social gaming platform, E-Pal, Balance offers players AI agents that can aid them in the in-game environment and serve as their personal companions. Based on a multi-layer architecture, the platform offers some of the most cutting-edge use cases for gaming-oriented AI agents.

 (EPT) is a web3 gaming platform that allows players to easily create, own and use AI companions within the blockchain games it supports.

 Balance supports a variety of first-party (internally developed) and third-party web3 games. You can deploy your AI gaming companions and they’ll act as your assistants, friends or co-players within Balance games.

Using Balance.fun, the platform’s primary web interface, you can create your AI agents and specify various details, such as appearance, personality and functions.

Balance isn’t just another obscure crypto gaming platform. The origins of the project date back to 2020, when the E-Pal social gaming provider was launched by four young California-based technology entrepreneurs — Brian Xiong, Tung Pham, Yuzhe Norris Wang and Yuanzhe Li. E-Pal quickly became a leading force in the newly emerging social gaming field, helping players worldwide find gaming companions. By early 2024, E-Pal had become the world’s largest gaming companion platform, boasting 4.2 million users and 450,000 Epals (gaming companions).

In February 2024, the E-Pal team focused its efforts on 

 and AI technologies, starting the development work on the Balance gaming platform. In September of the same year, Balance went live.

Per the project’s documentation, the platform operates on its own chain, Balance Chain, with 

 (AA) technology used for cross-chain communication. The fungible and 

 (NFTs) held by user accounts are based on the 

A key part of the Balance ecosystem is Key Nodes — purchasable 

 that help with the processing, storage and distribution of data required in the resource-intensive environment of web3 gaming. Some applied instances are the management of real-time leaderboards and the automatic distribution of loot and in-game currency. These nodes can also support the computational requirements of training AI models. As a reward for their work in supporting the platform’s operations, Key Nodes receive a wide range of rewards and benefits, including distributions of EPT tokens, the platform’s native cryptocurrency.

As the ecosystem develops, Key Nodes are envisioned to be involved in governance, 

 launch in September 2024, Balance introduced its Points System, designed to reward early contributors to the platform. During the campaign run in September, users could earn points by completing various specified tasks in various activities, such as joining the project’s social media pages or commenting and reposting.

The 400 users with the best performance in the Points System earned a whitelist spot to receive Pioneer Badge NFTs — distinct tokens that provide owners with early access to games, future campaigns, airdrops and beta testing opportunities. Pioneer Badge NFT holders can also enjoy other benefits, such as premium NFTs and voting rights on the Balance platform.

Balance’s platform provides a set of tools to create and use intelligent companions for Balance-based games. You can design your AI companions by specifying their key traits and behaviors through custom prompts and strategies. The AI agents on Balance can assist you in battles, gaming contests, learning, routine task execution and interactive entertainment.

Balance’s platform is made up of five key layers, each one serving a specific purpose in supporting its user and developer communities. At the top of the architectural stack is the application layer, which acts as the main interface for users to interact with human and AI companions and the wider Balance community.

The application layer also contains the AI Battle Reporting System, which is designed to give users feedback and analysis tools on their performance in the platform’s gaming ecosystem. AI technology is leveraged here to provide personalized analytics and performance improvement recommendations.

A range of NFTs are also part of the layer. These include in-game asset NFTs, as well as 

 (SBTs) that serve as summaries of the holder’s achievements.

The platform layer hosts the various games within the Balance gaming universe. These include both internal games and third-party games that have partnered with Balance. The key concept uniting all of the games is the active integration of AI companions and AI players, making the platform a unique environment in which humans and AI agents play, interact and compete.

The platform layer also features an AI-driven NFT launchpad that offers a rich tool set for creating personalized NFTs for games and applications. These NFTs can be traded on Balance's NFT marketplace, which is also an integral part of the platform layer.

The protocol layer includes a trio of critical protocols — the Fans Protocol, Epal Fan Token (FT) Exchange Protocol and Asset Protocol. The Fans Protocol lets players launch and manage their Fan Tokens, creating opportunities for influencers and community builders to tokenize their efforts and launch high-potential crypto assets. Meanwhile, the Epal FT Exchange Protocol facilitates the management of (and trade in) Fan Tokens.

The third protocol, Asset, is used for the comprehensive management of a wide range of digital assets on Balance, providing easy-to-use tools for asset creation and trading.

The token layer is designed for core operations involving the platform’s native EPT token. This layer supports the use of EPT for in-game purchases, access to services and AI companions, Fan Token minting and trading, in addition to other functionalities.

This is the underlying infrastructural layer that powers the platform’s operational mechanism. It can be described as Balance's operating system, and is made up of several critical components: the node system, the Balance 

, the Balance Chain network and the platform's unique ID system.

The node system provides the computational and storage resources to power games and other functionality on Balance. In addition, the system acts as a key connecting medium between Balance Chain and the AA functionality that lets the platform enjoy cross-chain capabilities.

The Balance stablecoin, also part of the infra layer, is designed to reduce volatility and bring rate stability to the platform's gaming ecosystem. The Balance stablecoin system helps players engage in asset trading without the fear of wild market fluctuations, an important consideration in the 

Designed to support multiple chains, Balance Chain operates based on dynamic protocol adaptation, automatically selecting the optimal blockchain platform according to user preferences and needs. This dynamic adaptability is designed to reduce costs, improve operational speed and enhance overall security for users.

The final major component of the Balance infrastructure layer, the Balance ID system, is a unified and secure user authentication and identity management solution. To be introduced later in 2025, the ID system will let users access all services and games within the Balance ecosystem via a single set of cross-platform decentralized credentials. In addition to human players, also AI companions will have their unique IDs.

EPT is the native cryptocurrency of Balance. Although the platform has been operational since 2024, the EPT token was just launched on Apr 21, 2025, with a total and maximum supply of 10 billion. It was issued on two major blockchains — Ethereum and BNB Chain. EPT has a wide range of functional use cases on the platform, including the following:

The EPT token's supply allocation is per the chart below.

 as a swap pair with USDT, and through the exchange's 

 based on USDT. You can also take advantage of Bybit’s campaign dedicated to the token to grab a share of the 

Under the terms of the event, new users can earn EPT rewards by accumulating a deposit volume of at least 3,000 EPT, or by depositing at least 100 USDT and trading 100 USDT worth of EPT via their first spot trade with Bybit. Meanwhile, existing users can qualify for rewards by trading at least 500 USDT worth of EPT on Spot. The event is valid through May 5, 2025, 9AM UTC.

As of Apr 25, 2025, the EPT token has been on the market for only four days, and is trading at $0.0117, which is 26.4% lower than its ATH of $0.01708 on Apr 21, 2025, and 11.4% higher than its ATL of $0.01129 on Apr 22, 2025.

Long-term price forecasts for EPT are mostly bullish. DigitalCoinPrice 

 of $0.0412 in 2027 and $0.0615 in 2030, whilePricePrediction 

These and other emerging long-term forecasts for the token don't constitute investment advice. Given EPT's extremely short history on the market so far, 

 on the token's future prospects, carefully assess market fluctuations within the crypto gaming niche and consider all other relevant factors before investing in it or any other cryptocurrency.

Capturing emerging market trends and sensing the broader market conditions, the team at E-Pal recognized the tremendous potential of gaming companions back in 2020. Four years later, E-Pal realized that the new market dynamics in gaming called for something even more innovative — the use of AI companions, in addition to fellow humans. The resulting product, the Balance platform, is now racing to stake the claim to the best web3 gaming environment supported by AI agents.

The platform's unique features — cross-chain functionality supported by an AA mechanism, a dynamic exchange system that selects the best network for users' transactions and, most importantly, intelligent AI companions — can certainly help establish Balance as a leader in this niche of web3 gaming.

AI agents are taking the gaming industry by storm, with blockchain technology acting as a powerful enabler of these intelligent friends of ours. The Balance gaming universe — supported by the proven track record of E-Pal — has a great chance of becoming the go-to environment in which to befriend your next artificial gaming partner.

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Balance (EPT): Revolutionizing web3 gaming with evolving AI companions

Mantle has launched the Mantle Index Four (MI4), an institutional-grade fund providing diversified exposure to yield-bearing digital assets. 

The S&P 500 rose 2.03% on strong Alphabet earnings and optimism over a possible Fed rate cut. Gold jumped 1.5% to $3,338 as trade tensions rose and a weaker dollar, along with falling yields, boosted demand. Fed rate cut signals also supported the rally. The Coindesk Indices, which tracks the broader crypto market, rose 0.74%, with Bitcoin up 0.06% and Ether down 1.89%, in the past 24 hours. Trade these markets and more with up to 500x leverage on Bybit MT5 using this 

Today's top performer is INIT, up 15.4%, following the launch of Initia, which aims to revive the appchain concept with an interconnected network and an INIT token airdrop.

Initia (INIT), founded in 2022, is a modular blockchain platform that combines a Layer 1 network with customizable Layer 2 rollups, enabling scalable decentralized app development. It offers flexibility in virtual machines, gas tokens, and transaction systems, while ensuring interoperability and addressing issues like liquidity fragmentation and network congestion. Initia has 

 to revive the appchain concept by offering a network that integrates appchains in a cohesive, interconnected way. The platform emphasizes full-stack control for apps, avoiding fragmentation. Initia is also launching an airdrop with claims available until May 24, 2025. The native token, INIT, has a fixed supply of 1 billion, distributed across eight categories.

Check out the latest prices, charts, and data of 

, an institutional-grade fund providing diversified exposure to yield-bearing digital assets. In partnership with Securitize, which has tokenized over $3B in assets, the fund aims to fill a market gap by offering native yield generation in a traditional fund format. Mantle Treasury has committed up to $400M as the anchor investment. The fund will rebalance quarterly and incorporate DeFi-native staking strategies, such as mETH and bbSOL, while ensuring investor protections. MI4 targets both crypto-native and traditional investors, with Phase 1 rollout scheduled for Q2 2025.

Yesterday, BTC spot ETFs saw a total inflow of $114.7 million, all from non-GBTC funds, while GBTC recorded no flow.

Dolomite, the 10th largest DeFi lending app, is launching a 200M token 

 (20% of total supply) during its TGE on April 24, rewarding users based on platform usage. The DOLO token powers a three-token system alongside oDOLO and veDOLO, enabling incentives, governance, and potential revenue sharing. With over $800M in TVL, Dolomite expands to Berachain, integrating with its Proof of Liquidity system to offer advanced lending features and asset utility.

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Mantle launches MI4 fund for institutional-grade digital asset exposure and yield generation

Crypto

Dollar cost averaging is a popular investment strategy in crypto, but how do you do it? Read this article to find out.

The cryptocurrency market has seen some dramatic peaks and troughs in the last few years. Many people rushed to invest in 

 (BTC) and other cryptocurrencies during the 

 of 2017, and consequently lost considerable amounts of money in the subsequent 

, simply due to the lack of an efficient investing strategy. 

If you are a newbie in the world of crypto, it may seem a challenge to find a strategy that would guarantee success. Indeed, no strategy can guarantee success. However, there is an option that can minimize the risks and bring you steady profits from the long-term perspective.

This article aims to uncover the strategy known as dollar-cost averaging and give some tips on how it can be implemented.

Dollar-cost averaging, or DCA for short, is an investing technique that helps to invest a certain amount of money in small increments at regularly scheduled intervals. The strategy uses changes in the market price over long periods.

The choice of the right moment is the most challenging task for beginning traders and investors. The variety of trading signals is so extensive that, at times, it may be tough to choose when to invest. Even experienced traders often make mistakes when reading the market. DCA helps to mitigate the risks.

As DCA involves the regular purchase of a particular asset for a fixed dollar value, its key goal is to decrease the impact of the volatile market, which is a key challenge for crypto investors. This method helps to smooth out the average price when you make a purchase, instead of making a lump sum investment.

DCA is nothing new, and has been popular among institutional investors long before cryptocurrencies were invented. This strategy has been endorsed by none other than Warren Buffett, CEO of Berkshire Hathaway, who has recommended it to those who can’t spend much time on investigating the market and developing their own trading strategies.

Though no strategy can mitigate risk entirely, DCA is still able to reduce it to some extent. Keep in mind that the strategy alone can’t provide a successful investment, as there are many other factors to be considered.

To apply the DCA strategy, an investor should first decide upon the amount to invest and the targeted asset. Since we are talking about cryptocurrency investments, it may be Bitcoin or any other 

. Having specified the target price, he/she should divide the investment sum into equal parts and sell them regularly when the market approaches the defined level.

The DCA trades can be handled manually or with the help of certain automation tools. For instance, dollar-cost averaging bots working with cryptocurrency exchanges can significantly simplify the process, as they help investors automate the operations. Such bots perform automatic purchases without considering the market conditions, such as the market movement or the price of the asset. The process is automated in a set-and-forget manner. 

Sticking to a DCA strategy helps to flatten average purchase price and reduce the impact of inefficient decisions. For instance, you may have purchased an asset when its price was skyrocketing. Later, when it pulls back, you may buy more cryptocurrency at a lower price during the market sell-off period, while other market participants sell a huge volume of assets within a short time. Buying when the market is down creates the possibility of smoothing the average price and deriving profit from the investment, something that will hopefully grow in value in time. 

The results can be different when disparate assets are employed. The service 

with the help of a Bitcoin investment calculator, helps investors to explore different parameters so that they can see their performance when using DCA. The visual graphics help to see if DCA is the right strategy for investments. 

To evaluate the efficiency of your investment, specify the start day, the amount invested, and the interval of repeat purchases. The tool facilitates the purchases on a recurring basis within the specified period. The calculator uses the historical price of Bitcoin to calculate the profit of a user. The calculator’s default parameters show the profit when you — for example — have invested $10 in Bitcoin every week for the past three years.

Using this example, the investor would have spent $1,570 on BTC. This amount would have turned into $11,782 (+650%) at the time of writing. The chart doesn’t only calculate the amount of profit but also compares the efficiency of the strategy applied to other assets. For instance, the same strategy wouldn’t work so well with gold. It would have returned only +16%.

Dollar-Cost Averaging vs. Other Investment Options

In accordance with historical records, the financial markets tend to grow over time, which explains the advantages of dollar-cost averaging. This investment method differs from other methods, as it doesn’t require investors to guess when market prices will be low in order to invest at the right time. Instead, averaging the dollar’s value ensures that investors buy at regular intervals, and can take advantage of market downturns by automatically buying more assets for the same amount of money. Averaging the value of the dollar removes some of the guesswork from an investment and turns it into a more predictable routine.

Investors can also select a “buy and hold” strategy, not intending to sell the assets predicting the growth of their value. The goal of this strategy is to enter the market and remain there, despite all fluctuations. Timing the market is not an essential factor when this strategy is employed. 

Although the holding strategy seems to be easier, DCA can be a more effective option. In the end, an investor following the DCA strategy, buying at regular intervals, can end up having more Bitcoin than someone who invested the same amount in one lump sum. Both started investing simultaneously but employed different strategies.

Many investment companies offer solutions to facilitate the usage of the DCA strategy. They often allow investors to create automatic investment plans in which investors can specify the dollar amount and frequency of investment, and a bank account for automatic withdrawals of funds. Thus, the averaging of the dollar value is done automatically, ensuring that the investor doesn’t forget to make the planned purchase. It also helps make budget planning easier, as the same dollar amount is purchased at regular intervals.

The DCA strategy is one of the best options for markets with a high level of volatility. The strategy was designed to cater to an investor’s needs in such markets, mitigating the risks of buying assets when their prices are soaring. The concept of splitting a large investment amount into multiple smaller purchases is appreciated by investors who can’t afford to make investments in a lump sum. 

However, critics argue that the use of this strategy brings losses when the market performs well. For instance, when the market is in a bull trend,  traders who invest earlier reap bigger profits. So the strategy has its pros and cons, which we cover fully below. 

The benefits of using the DCA strategy include:

An investor doesn’t have to invest a considerable amount, in one lump sum, immediately. Consequently, this strategy reduces the risk of investing at the top price. It also reduces the burden of trying to time the market. In a volatile cryptocurrency market, the asset’s value can fall many times within a relatively short period. 

As we know, the crypto markets can be very hard to predict. As a result, even highly experienced traders encounter problems when predicting the movement of selected assets or even the whole market. Those who are new to the entire world of investing and trading often lose considerable sums of money because they don’t have a strategy in place. With this in mind, the DCA approach is a much safer investment strategy, as it helps to offset large market dips and works for investors with any level of expertise.

The possibility of investing small amounts

The DCA strategy is suitable for a broader range of investors, since a sizable up-front investment isn’t required immediately. This makes it affordable to those who can’t fork out a massive amount of capital at once. Also, as investors can have doubts concerning an asset and feel uncomfortable investing their savings in it, it becomes psychologically easier for them to invest small chunks from paychecks regularly. 

Those who seek quick profits may quit and stop investing, getting angry when the price of an asset drops. It’s important to understand that DCA is not a scheme for getting rich fast. This strategy is long-term, as its goal implies taking advantage of market downturns without risking capital. Beginning investors can be easily discouraged by negative episodes. Therefore, the DCA strategy can be an excellent solution for them. It gives them time to do deeper research, while investing small chunks of a fixed amount.

The opportunity to buy assets with a discount

When you don’t invest the whole sum that you have at hand, you may have some cash left over that you can use to buy more cryptocurrencies at dips. For instance, in November 2018, Bitcoin collapsed to $3,500  after it had been traded at $6,500 for several months in a row. Such periods can be used as an opportunity to dollar-cost average. Taking into account a parabolic rally soon after the price crash, the followers of the DCA strategy could take great advantage of it — especially when the price skyrocketed to $14,000  three months after the crash.

This aspect is sometimes neglected, though it is incredibly important for the mental health of market participants. Those who use the DCA strategy don’t worry so much about the price swings, which helps to avoid constant anxiety. 

The drawbacks of dollar-cost averaging are as follows:

Traders have to pay fees for making transactions. Following a DCA strategy usually incurs more trading costs. However, taking into account the fact that this is a long-term strategy, the gains received from it should more than cover the fees, which will hopefully be insignificant compared to gains achieved in the future. 

One of the drawbacks of the DCA strategy is the possibility of missing out on a considerable gain you could have obtained from investment of a large sum in one go. However, it’s necessary to use the right timing for such operations if you want to see a significant profit from an investment.

Much time is required to make the strategy work. Depending on the investor’s DCA structure, it can take from three to twelve months to get any sustainable results.

Worse performance in a strong bull market

The choice of the strategy depends upon the situation in the market. The DCA strategy may not always be the best choice. For example, it may result in losses at the beginning of the long-term bear market that may last for a few years. It may be better to invest a significant sum in cryptocurrencies if you are sure that Bitcoin is at the beginning of a bull cycle.

The DCA strategy is a good choice for less-experienced investors, who are guided by emotions and thus may be prone to making incorrect choices. If you seek long-term profits and are ready to wait for a substantial period before your investments pay off, this strategy is exactly the fit for you.

Explained: What Is Dollar-Cost Averaging?

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