DCA is Dollar cost averaging where you put a set amount of money at set intervals into a particular asset.
For example if we talk of crypto and BTC then one can choose an amount like $100 to be invested on every first of the month.
This way one can build a BTC portfolio step by step.
The pitfalls of DCA
I have found that DCA is a very effective strategy to build a portfolio if you have a long term horizon.
for this you have to have the conviction to hold the asset for a long period of time.
A lot of times people keep looking at the day to day price and become impatient.
DCA needs a lot of patience.
Besides if you investing in BTC or ETH a $10 investment may not be very effective as the gas fee may eat up the entire invested amount.
So for low ticket size investors we need a low price token or coin.
Leo token is an excellent DCA candidate
It is low cost and the regarding power up as it can lead to a curation reward income by curating posts on leofinance.io or delegating power to a curation account.
How to get the discipline needed to do DCA?
I wish there was a pill that one could buy and pop to get the desired results.
However it is something one has to learn along the way.
LPUD taught me a lot about DCA
LPUD is leo power up day that is celebrated by the members of the leofinance.io community.
The best part about leo power up day or LPUD is that by powering up 150 or 50 leo tokens one can be eligible to win This low band of entry makes it easier for anyone to be a part of the event.
Come for the mega prizes but stay because of the power of compounding
When I started participating in LPUD there was a 150 leo requirement to be a part of LPUD.
Now the entry level has been lowered to 50 creating two sets of prizes one for those powering up with 50 Leo and other for those who power up with 150 or more leo tokens.
Every month I would power up my leo tokens and soon I began to see the benefit. I found that my leo power climbed and this resulted in me getting a higher curation reward every week.
| I kept saving up these leo tokens for the LPUD and it became a habit.
This got me in the habit of saving Leo tokens for LPUD.
The best part is that I know that the Leo tokens have tremendous potential and now I am increasing my holding in leo because it is a part of my long term crypto portfolio.
Do leo price fluctuations worry me?
Leo for me is in a classic accumulation zone before actual price discovery kicks in.
It is easier to buy and accumulate now that it is in the sub 5 cent zone. It would be more difficult to buy at a stage when leo goes to the moon and the price goes to say $5
So a lower price range is better for more people to fill their bags.
Larger numbers of holders is better than a few whales holding the leo token
The current price and a lower 50 Leo entry level for LPUD is an excellent strategy to increase the user base of leo holders.
This would encourage a wider user base holding and powering up leo tokens.
LPUD is an excellent way to DCA the LEO token
The lower price makes it easier to buy for anyone and the incentive to enter the LPUD |makes sure that the chain of monthly power ups is not broken.
Even if the price is range bound or drifts lower one begins to see the returns one receives in terms of the curation rewards.
Final thoughts
I feel LPUD has been a great teacher for me and I am more inclined to safe incrementally into an asset that I trust.
What I have learnt with LEO and LPUD is a strategy that I can apply to other coins, tokens and asset classes where I see a long term future.
So do power up leo tokens
CUB attack: Power up at least 50 $leo on the 15th
LION attack: Power up at least 150 $leo on the 15th
Based on how much $leo you power up, you will be eligible for some fabulous delegations prizes
The eligibility criteria are:
