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Educational content, not investment advice.

Souq Dailyسوق ديليSouq Daily

Lesson 9 of 104:005 Sources

Investing in crypto: DCA, long-term storage and diversification (risk first)

Video coming soon

Presented by NourIn Arabic, with captions. Other languages are coming.

Educational content, not investment advice. Nour explains how markets work. She never tells you what to buy or sell.

No method guarantees profit. Start with risk: only use money you can afford to lose entirely, never borrowed or emergency money.

  • Dollar-cost averaging (DCA) invests equal amounts at regular intervals, buying more units when prices are low and fewer when high.
  • DCA organises timing but does not remove risk: the BIS estimated that over four-fifths of bitcoin app users would have lost money by end-2022 even with monthly investing.
  • Long-term holding needs secure storage: cold wallet and a paper seed phrase.
  • Diversification helps but guarantees nothing, and coins can fall together: Bitcoin and ether both fell about 75% in 2022.

Quick check

Three questions. Pick an answer to see why.

0/3

  1. 1.$100 a month at prices $50, $25 and $100. How many units do you hold?

  2. 2.What does dollar-cost averaging NOT do?

  3. 3.Why is holding ten different cryptocurrencies not necessarily real diversification?

Sources

Every fact in this lesson is backed by the sources below.

  1. 1.SEC / Investor.gov – Investor Alert: Crypto Asset Securities (Mar 2023)The only money to put at risk in a speculative investment is money you can afford to lose entirely
  2. 2.Investor.gov – Glossary: Dollar Cost AveragingDefinition of dollar-cost averaging: equal portions at regular intervals; buys more when low, less when high
  3. 3.BIS Bulletin No 69 – Crypto shocks and retail losses (Feb 2023)Even with monthly investing, over four-fifths of users would have lost money; bitcoin and ether fell around 75% over 2022; retail chased prices
  4. 4.Investor.gov – Diversify Your Investments'Don't put all your eggs in one basket'; diversification can't guarantee investments won't suffer if the market drops
  5. 5.bitcoin.org – Secure your walletOffline wallet (cold storage) provides the highest level of security for savings

Educational content, not investment advice. Risk warning: trading forex, CFDs, gold and crypto carries a high level of risk and may not be suitable for everyone. You can lose more than you put in. Souq Daily is an education platform. Nothing here is investment advice, a recommendation or an offer, and past performance does not predict future results.