the-market

DCA in DeFi (I)

Donald ElefsonMarket AnalystDecember 31, 2024

Many boomers cannot retire because they haven't saved enough, and Social Security only goes so far.

Me, I am retired, thankful. I got lucky.

It is basic, if you want to be able to retire someday, buy a house, or even buy that dream car, you must save.

Unfortunately, many people think they do not have enough money to save. And yes, monthly expenses can gobble up income. But there are ways to save small amounts; there are ways to start a long-term savings habit with small amounts of money.Two components for starting a savings habit are DCA (dollar-cost-averaging) and tokenized real-world assets.

DCA is an investment strategy that involves buying into an asset at regular intervals regardless of the price.

Tokenized RWAs are backed by 'traditional' assets and issued on a blockchain in token form. They are held in a crypto wallet and priced based on the underlying asset.If DCA is used, rising interest rates can be a gift to savers who want the security of a traditional asset, in a decentralized form.

Whether bonds, stocks, or commodities, these assets follow the trend of their counterpart capturing some high and some low returns, resulting in a steady average overtime.

Among crypto natives, DCA is nothing new. According to a 2023 DCA survey, dollar-cost averaging was the top investment strategy among crypto investors, with 59.13% of respondents identifying it as their primary strategy.

If it is done to buy crypto, it should work for on-chain assets.

With RWAs and DCA, small amounts of money can be invested on a regular basis, and a diversified portfolio of traditional assets can be created for all investors, no matter how big or small.

Don't make the same mistake my generation made. Start saving now. Use tokens, blockchain, and stable bonds to your advantage.

It is NEVER too early to start a savings habit, and with the blockchain no amount is too small.

Stay tuned for more information on stable bond opportunities for DCA programs.

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This blog is for educational and informational purposes only, covering general market trends, industry developments, and asset features. Nothing herein is investment advice, a solicitation, or a recommendation to buy or sell any assets. Etherfuse and its guests may hold stakes in some or all of the assets discussed.

Donald Elefson

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Donald Elefson

Market Analyst

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