One of the biggest concerns for prospective crypto investors is whether it's too risky to invest in Bitcoin (CRYPTO: BTC) and other digital currencies. It's a fair question to ask given how volatile Bitcoin has been over the years. While some investors have gotten rich from investing in crypto, many others have lost big.

But rather than making a big one-time investment in crypto, you may want to consider spreading out your investment over time, through a strategy known as dollar-cost averaging. Below, I'll show how an investment in Bitcoin would have fared if you invested the same amount at the start of each month last year, compared with how you would have done if you just made a single purchase.

An advantage of setting a plan to use dollar-cost averaging is that you take out the emotional part of the decision-making process in investing. And that's the part that can sometimes get you into trouble, by going on a gut feeling or making an impulse decision. With dollar-cost averaging, you can just make a plan to buy at the start, end, or middle of every month, regardless of what the price is.

Continue reading

Source Fool.com