https://preview.redd.it/ufumayantbyd1.jpg?width=1566&format=pjpg&auto=webp&s=decb3588a5a5f7ac9aaa0c6cc23ec62e76f9485b

Wrapped crypto assets are tokens backed one-to-one by an underlying asset, typically native to another blockchain or platform.

The concept of wrapped tokens aims to bridge the gap between different blockchains, enabling the seamless transfer of value and functionality across different blockchain networks.

You can think of a wrapped token as a tokenized version of an original token.

This additional tokenization step is taken so that a token which is native to one blockchain can be used on a different blockchain as well.

For example, bitcoin (BTC) is not natively compatible with the Ethereum blockchain. This incompatibility means that bitcoin holders cannot directly participate in decentralized finance (DeFi) protocols and earn yields on their assets.

Using wrapped tokens, however, they can now enjoy these benefits.

Use cases of wrapped crypto assets

Wrapped crypto assets have found applications in a variety of use cases, primarily centered around enhancing interoperability and expanding the utility of digital assets. Some notable use cases include

• Cross-chain trading: Wrapped tokens enable users to trade assets from multiple non-native blockchain networks on a single decentralized exchange (DEX). This functionality unlocks access to a much wider range of trading pairs and liquidity options.
• Liquidity provision: Liquidity providers can bridge their assets across different blockchains, allowing them to participate in yield farming and liquidity mining on multiple platforms.
• DeFi applications: Wrapped tokens facilitate the integration of assets from different blockchains into decentralized finance (DeFi) protocols. This integration includes using wrapped assets as collateral for loans or participating in yield farming.
• NFT interoperability: Non-fungible tokens (NFTs) can be wrapped, making them compatible with NFT marketplaces and applications on other blockchains.
• Cross-chain payments: Wrapped assets can be used for cross-chain payments and remittances, providing a fast and efficient method of transferring value across different networks.

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How do wrapped crypto assets work?

There are several ways to create wrapped cryptocurrency tokens.

Crypto users can create some types of wrapped coins by simply depositing tokens into a smart contract, and receiving an equivalent amount of wrapped coins in return.

However, the original way of creating wrapped tokens like wrapped bitcoin (WBTC) typically involves three intermediaries:

• A merchant.
• A custodian.
• A decentralized autonomous organization (DAO).

Any crypto user who wishes to use wrapped tokens can interact with a merchant to swap and redeem these tokens types.

Merchants can be centralized exchanges or individual projects. However, to prevent centralization issues, merchants cannot create their own wrapped tokens at will. Instead, they must collaborate with other institutions called "custodians".

Custodians are often regulated entities that specialize in cryptocurrency storage. Merchants interact with custodians on the users' behalf.

Minting

A merchant initiates the wrapping process by sending cryptocurrency to a wrapped token smart contract. This automated computer program manages the transaction between the merchant and the custodian.

A merchant may start this process to increase their own supply of WBTC in response to rising crypto market demand.

In this example, we'll assume the merchant transfers over 100 BTC. Upon delivery, the custodian commits the original asset to its secure storage and mints 100 Wrapped Bitcoin (WBTC) tokens. To be compatible with the Ethereum blockchain, custodians mint these new tokens using the ERC-20 token standard.

You can learn more about the ERC-20 standard in our Kraken Learn Center article What is Ethereum? (ETH).

The assets held in reserve back the wrapped tokens 1:1, and ensure their prices remain accurately pegged. You can think of it as holding tokens in a digital vault until it's time to redeem them.

The custodian completes the initial part of the minting process by sending the newly created coins to the wrapped token contract. The contract then releases these coins to the merchant.

Redeeming

If the merchant decides to redeem their WBTC tokens for BTC held by the custodian, they must submit a "burn request". Burning is a process of permanently removing tokens from circulation. This request instructs the custodian to remove the merchant's WBTC balance from the circulating supply and release the equivalent amount of BTC from storage.

The wrapped smart contract completes the wrapping process by transferring the bitcoin from the custodian to the merchant.

Governance

A specifically created decentralized autonomous organization (DAO) manages the institutions involved with wrapping Bitcoin on the Ethereum blockchain.

This group plays an important role, as the wrapping process heavily relies on trusting centralized institutions — something that highly contradicts the decentralized foundations of cryptocurrencies like bitcoin.

The WBTC DAO consists of many merchants, custodians, and other entities. These parties can add or remove new members, and adjust contract conditions by collectively signing a multi-signature contract. This smart contract governs all activities within the DAO.

Challenges and considerations

While wrapped crypto assets offer significant benefits, they also come with certain inherent risks. The main issues being centralization, security risks, and regulatory concerns.

Users must trust the issuer of the wrapped tokens to mint and redeem native assets when requested. They must also rely on custodians to guarantee the security of assets held in reserve. These single points of failure can make wrapped tokens significantly higher risk than other asset types.

Additionally, the wrapping smart contracts used to facilitate trades between merchants and custodians may be prone to vulnerabilities and exploits.

It also remains unclear how regulatory bodies around the world view these types of tokens and what protections may be afforded to people in different jurisdictions.

Importance of wrapped crypto assets

Wrapped crypto assets have emerged as a powerful solution to bridge the gap between popular cryptocurrencies on different blockchain ecosystems. Their ability to enhance liquidity, accessibility, and blockchain interoperability holds promise for the continued evolution of decentralized finance, cross-chain interactions, and beyond.

However, it's essential to balance the benefits with the potential risks and challenges associated with centralization and security. As the blockchain space continues to mature, wrapped crypto assets are likely to play a pivotal role in shaping the future of decentralized ecosystems.

Examples of wrapped crypto assets

In 2019, three institutions created WBTC — the crypto industry's first wrapped token. These companies were BitGo Inc., Republic Protocol (now called Ren) and the Kyber Network.

Since then, dozens of other projects have released their own wrapped coins.

Now, hundreds of coins that were previously incompatible with other blockchain networks can exist synthetically on non-native platforms.

These include:

• Wrapped Ether (WETH)
• Wrapped Tron (WTRX)
• Wrapped Dogecoin (WDOGE)
• Wrapped EOS (WEOS)
• Wrapped Matic (WMATIC)
• Wrapped AVAX (WAVAX)
• Wrapped Fantom (WFTM)
• Wrapped BNB (WBNB)

Get started in DeFi with Kraken

Kraken makes it easy to participate in the decentralized financial economy.

Whether you are looking to purchase cryptoassets before using them in a DeFi protocol or looking to convert your crypto holdings back into cash, Kraken makes it easy.

Kraken offers trading on the most popular DeFi assets as well as the most popular cryptocurrencies in the market today.

Get started

I was about to buy some $TAO today on Kraken and initially the exchange showed its price to be $487. However, when I get to the transaction confirmation page, it showed the price as $499 dollars. I know this was not due to momentary volatility because I went back to the trading page and once again it showed the lower price of $487. I don't want to be pay 2% above market rate on top of Kraken's transaction fees. Is there anyway to mitigate this?

do i really need 10 million dollars to do margin trading in the US on kraken? am i actually reading that right?

Anyone in the UK deposit gbp and had any issues? Never ever waited longer than 4-5 mins on my deposit hitting however currently 3hrs!

Appreciate it does say 0-3 days however one of the main reasons I use Kraken is because it’s near instant.

If I etransfer fiat or sell some coins? Can't seem to find a straight answer. Less than 4 figure.

are xmr deposits possible before 31.10.24 for german customers?

hi u/KrakenSupport

I am currently engaging in a research project, focused on the intersection of European Regulations (MiCAR, AMLR, etc) and crypto-assets.

The goal is to understand how evolving regulations have impacted the wider DLT ecosystem, especially as related to European Fundamental Rights such as privacy (Art. 7), data protection (Art. 8), and property (Art. 17).

The study is a follow on from a previous research project, conducted in 2019, published in 2020:(https://journals.sagepub.com/doi/abs/10.1177/0268396220944406)

I would be very much interested to engage with Kraken, as they have been at the forefront of this intersection, and have been directly impacted by the evolving regulatory landscape (as have their platform users).

Is this something that Kraken would like to engage with? I believe the output of this research will be greatly beneficial to academic, policy, and DLT communities.

I hope to hear from you soon.

Any idea when, if at all? I’m having to use Coinbase over Kraken which I don’t like!

kraken.com has announced that it will halt XMR deposits on October 31. I thus want to deposit some XMR to my Kraken wallet to sell it, before it becomes impossible. However, when trying to get a deposit address, I get the following message:

You can't deposit XMR XMR is not available to deposit in your country. Choose another currency to deposit.

Does anyone know why this is? Has kraken.com broken it's promise to accept deposits until Oct. 31.?

I am completely verified and have access to all of krakens high level features, I have been for months , yet all of my deposits are put on a 72 hour hold? Before it was new accounts. Now it is all accounts?

Hi, I want to transfer some crypto from MEXC to Kraken, how do I go about doing this - does it need to go to Kraken Wallet or Kraken Pro.

TIA

I initiated a withdrawal of small amount of gbp and it's been stuck on "confirming" for couple hours. Usually it withdraws within 5-10 minutes.

Anyone else having similar issues?

I want to be an early investor in Krakens new Layer 2 “Ink” token but I can’t find any information about where to buy in. Is this just a protocol/chain or is this an actual token? I thought this would compete with Binances’ BNC token…but am I misunderstanding?? Please tell me if you have heard of this and any information about how I can invest.

I have monero in kraken and I want to sell it on bisq, but I am not sure how to. If someone could help me that would be great

Does the withdrawal fee for bitcoin cover the on chain fee, or is it in addition too?

Made a bank transfer deposit over an hour ago, still in the ''initiated' stage, method says Banking Circle (FPS) anybody have any idea of when the deposit will be successful?

I was pleasantly surprised when I managed to create a Kraken account with minimal friction and was allowed to wire transfer up to $100,000 worth of cash into the account per day. However they immediately held my first deposit and demanded an invasive KYC photo with me holding a statement and my ID, which I complied with. Then a normally 10-minute process of confirming identity on other exchanges has taken a day and counting.

Support ticket is completely silent. The chatbot and telephone support refuse to help me other than referring to the ticket. The support at r/KrakenSupport has assured me my ticket is escalated but that doesn't seem to do anything. The thing is, those kinds of cases are so common on the support subreddit that I have a suspicion it is intentional. I don't want to shill for other platforms but it seems that there are places where they demand a verification before you put money in, rather than surprise you with a ransom later. This experience is incredibly stress-inducing and has wasted one day of life and counting. I am looking to file a CFPB complaint if this indeed is a common experience.

We are thrilled to launch Kraken Bitcoin (kBTC), a fully backed, cross-network-compatible ERC-20 representation of Bitcoin custodied by Kraken.

https://preview.redd.it/hk35t507obvd1.jpg?width=1535&format=pjpg&auto=webp&s=84685dc6536c62bfa9672d69c9570ff12e110ca4

Our mission constantly challenges us to find innovative ways to accelerate the global adoption of crypto. kBTC builds upon Bitcoin’s fundamental strengths – security, scarcity and its role as a store of value – and extends its utility further, into DeFi and beyond. 

What is kBTC?

kBTC is a fully backed, cross-network-compatible ERC-20 token. Each kBTC token is fully backed 1:1 by an equivalent amount of Bitcoin and held securely in Kraken’s custody. Clients can verify this for themselves at any time by inspecting our reserves onchain.

kBTC can be used in decentralized applications (dApps) through interoperability with networks like Ethereum and OP Mainnet (formerly known as Optimism).

Learn more about kBTC

Why kBTC?

We’ve always championed the transformative potential of Bitcoin, the original and most resilient digital asset ever created. Now, with kBTC, you’re not just getting a wrapped token that lets you dive deeper into DeFi, you’re getting Kraken’s 13+ years of industry-leading custody infrastructure. This ensures that when you use kBTC, it is backed 1:1 by Bitcoin, securely stored and always accessible.

Kraken’s best-in-class custody procedures

Kraken’s full-reserve practices and regulated framework provide an unparalleled level of security and trust. Each kBTC token is backed 1:1 by an equivalent amount of Bitcoin held at Kraken Financial, a Wyoming-chartered SPDI (Special Purpose Depository Institution). 

Don’t trust – verify!

Don’t take our word for it, see for yourself. We encourage you to inspect our onchain reserves and independently verify the transparency and security that we’ve built into kBTC:

Verify that kBTC is 1:1 backed

kBTC OP Mainnet smart contractkBTC ETH smart contractBTC custody address

Geographic restrictions apply. These materials are for general information purposes only and are not investment advice or a recommendation or solicitation to buy, sell, stake, or hold any cryptoasset or to engage in any specific trading strategy. Kraken makes no representation or warranty of any kind, express or implied, as to the accuracy, completeness, timeliness, suitability or validity of any such information and will not be liable for any errors, omissions, or delays in this information or any losses, injuries, or damages arising from its display or use. Kraken does not and will not work to increase or decrease the price of any particular cryptoasset it makes available.

Some crypto products and markets are unregulated, and you may not be protected by government compensation and/or regulatory protection schemes. The unpredictable nature of the cryptoasset markets can lead to loss of funds. Tax may be payable on any return and/or on any increase in the value of your cryptoassets and you should seek independent advice on your taxation position. Geographic restrictions may apply.

Custody services provided by Kraken Financial, a Wyoming-chartered Special Purpose Depository Institution. Kraken Financial is not an FDIC-insured bank and deposits are neither insured by nor subject to the protections of the FDIC.

Recently I needed to get some information about a withdrawal I made a while ago on Kraken. I found it easily enough in my Ledger history, but was surprised to see that it didn't show the txid of the withdrawal on the blockchain. Upon investigating, I found the following info on one of their support pages:

Limited availability for blockchain transaction IDs

Blockchain transaction IDs are only available for recent transactions (from the last 2-3 months) and cannot be found in the ledger. If you will require your blockchain transaction ID at a later date, then we suggest storing a copy of your blockchain transaction ID in advance.

The withdrawal address is also not displayed, but that wouldn't be an issue if the TXID was provided. It seems odd to me that something like a blockchain transaction hash, which is a fundamental element of almost all types of crypto transactions, would be intentionally omitted from transaction reports. Surely they have this information, so what is the logic behind limiting customer access to this info? Anyone have any idea? Educated guesses? Uneducated guesses? Shots in the dark? Disinformation? All replies welcome. Thanks.

Hello !

I'm trying to build a small app and connect to the Kraken API (REST), I just want to start by simply fetch my balance account but I always have the error : EAPI:Invalid key

I'm using CryptoJs to generate the API-Sign key

Maybe some of you can see what's the issue ?

export const fetchCryptoKraken = async () => {
  const nonce = Date.now().toString();
  const postData = JSON.stringify({ nonce });

  const uriPath = '/0/private/Balance';
  const apiKey = 'gf*******';
  const apiSecret = '/+M*******'; 

  const message = nonce + postData;
  const hash = CryptoJS.SHA256(message);
  const hmacMessage = uriPath + hash;
  const hmac = CryptoJS.HmacSHA512(hmacMessage, CryptoJS.enc.Base64.parse(apiSecret)).toString(CryptoJS.enc.Base64);

  const config = {
    method: 'post',
    maxBodyLength: Infinity,
    url: '/api/0/private/Balance', 
    headers: { 
      'Content-Type': 'application/json', 
      'Accept': 'application/json', 
      'API-Key': apiKey, 
      'API-Sign': hmac
    },
    data: postData
  };

  axios.request(config)
    .then((response) => {
      console.log(JSON.stringify(response.data));
    })
    .catch((error) => {
      console.log(error);
    });
};

https://preview.redd.it/b8bdjbx0f9vd1.png?width=1584&format=png&auto=webp&s=0b0516ea7a90cac55b7999d5cff465d73a709d25

Thank you so much, wish you all the best

Hi I want to inform everyone that I am a victim of a crypto theft which happened on Sept 28th/29th . All assets in ETH, BTC and USDT were transfered to HitBTC. Tx IDs and tracking links are listed below. The police has already requested HitBTC to share the information, but as I know there has been no reply so far.
I will appreciate any info which could help in crypto recovery or/and finding a thief.

Payment Wallet:

ETH

Wallet: 0xbbc3bad4a94f3579103b81d32ef95b0e1e6d669d

txid: 0x3d8fd2b9c1a4f610ddb6a7fbdff339ba2a76a646d751e4100f6f42b433016d37

https://etherscan.io/tx/0x3d8fd2b9c1a4f610ddb6a7fbdff339ba2a76a646d751e4100f6f42b433016d37

Transfer 21.261631517031737907($50,239.37) ETH To 0x44B086c675C7CeB44cc13fFfCefE8c370213E306

track: https://dashboard.misttrack.io/address/ETH/0x44b086c675c7ceb44cc13fffcefe8c370213e306

BTC

Wallet: 1GQF6hRPUbG8MwAxpTgbhXanEQujppzpbv

txid: 184b2290eb802132413b01657721a8e27f8c08d650ba37da33a90a53eee83967

0.44856336 BTC ($29,419 )

https://dashboard.misttrack.io/address/BTC/bc1qm6g8rp04ygwe2cymh0d6y5euqyd7cz4krp6qc5

Litecoin (LTC)

Wallet: LadCMujDZFWBcjs7zbftyYeYSdH1trL2kQ

tx id: b854ee944ed8a69f0ad51a8ab20d1a25d0f00bec3d48de8ca06d02a65291fac8

Amount: 1.53180828 LTC

Tether USDT ERC20

Wallet: 0xbbc3baD4a94f3579103B81D32eF95b0E1e6D669D

txid: 0x5fb30f2149af87c673aff2123604c5bbe85d063823fd977eab50d693588a5e61

Transfer 1,958.991767 ($1,958.99)

Bitcoin Cash (BCH)

Wallet: bitcoincash:qz5w7w853zujl27v9zunkwsey8pxumm975fs90yemm

0.43031978 BCH

https://blockchair.com/bitcoin-cash/transaction/670bf5979074dcf5ab8cbdb7ace147f3d5414ecd975bba8a543fd1d7a958660a

670bf5979074dcf5ab8cbdb7ace147f3d5414ecd975bba8a543fd1d7a958660a

==============================================================================================

Income Wallet

ETH

Wallet: 0xab7ce639d42dfb5d7e9223b6b328f259a56e9580

txid: 0xd3896b63191e046bf717a5690b6b7f69094de6c6924015b80faac6b0159e60f3

https://etherscan.io/tx/0xd3896b63191e046bf717a5690b6b7f69094de6c6924015b80faac6b0159e60f3

Transfer 3.895792765044279361($9,211.49) ETH To 0xf04E8f9B0C192803347897220F3C240dCD671c2C

track: https://dashboard.misttrack.io/address/ETH/0xf04e8f9b0c192803347897220f3c240dcd671c2c

==============================================================================================

Mining Wallet

ETH

txid: 0x1572dcf538482e7f29c57e0892a9483d2cd7f5697307942f287569072ced67be

https://etherscan.io/tx/0x1572dcf538482e7f29c57e0892a9483d2cd7f5697307942f287569072ced67be

Transfer 16.457522389071524518($38,943.22) ETH To 0xd6e6a1764ffe3682367E824170d00626E3e471c4

track: https://dashboard.misttrack.io/address/ETH/0xd6e6a1764ffe3682367e824170d00626e3e471c4

On January l've created my kraken account. I've deposit 4000€. Converted to USDC (at time around d 4300USDC). Then I invested all that amount in BTC, ETH, INJ and AVAX. All invested, none left.

I've left all these lo the my money there and I 10 months later found I lost big time.

Despite almost all those valued a lot since January, I've lost 1000USDC ... so think it was rollover fees or something like that, despite I didn't have any money not invested in USDC during this 10 months.

Who else got fooled with this?

Cheers! F

UK client here. What's the best way to buy the AUDIO/USD pair when I can only deposit GBP? Do I need to buy USDT/GBP and then sell USDT/USD? Is there a better way?

https://preview.redd.it/btb2t6q8x5ud1.jpg?width=1116&format=pjpg&auto=webp&s=f4a0f38afc00a6e827e4a0154c2206da94c0fc0c

Intro to DCA strategy survey 📖

Dollar-cost averaging (DCA) is an investment strategy where an individual purchases a fixed amount of an asset, such as a cryptocurrency, at regular intervals over a period of time. 

Because it offers a "set it and forget it" way to steadily accumulate crypto over time, dollar-cost averaging has also become a popular trading strategy for investors looking to reduce the impact of short term price volatility and remove emotions that can cloud judgment.

Our survey found that a large majority (83.53%) of crypto investors have used dollar-cost averaging, and 59% of respondents use DCA as their primary crypto investment strategy. 

But how many of these investors stick to their guns for the long-term and continue to invest in the space regardless of market conditions?

We dug a little deeper with a survey of 1,109 crypto investors to see how they actually respond to market fluctuations and whether they successfully avoid emotional decisions by using the DCA strategy.

Read on to see how crypto investors across different ages and income levels utilize the dollar-cost averaging strategy to consistently grow their crypto portfolio.

Key takeaways 🔑

• Our survey found that the majority of crypto investors use DCA (59%) as their primary means of investing in the crypto ecosystem
• Younger crypto investors prefer to take on more risk, with 50% of 18-29 year-olds opting to time the market rather than commit to DCA (41%). 
• Investors making less than $100,000 are more likely to try timing the market and make adjustments to their crypto investment strategies than higher-income investors. 
• Investors earning more than $100,000 are significantly more confident about their investment strategy and less likely to pivot than lower earners. 63% of investors above this threshold feel “very strongly” about their ability to stick to their plan despite market fluctuations. 
• Almost three-quarters of crypto investors keep a closer eye on crypto markets than traditional markets.

Majority of crypto investors say DCA’s biggest advantage is hedging against market volatility 🏔️

While DCA is generally seen as a way to develop a consistent investment approach and manage emotional reactions to market changes, most crypto investors believe the DCA strategy plays a more important role. 

46.13% of crypto investors in our survey said that the most significant advantage of DCA is that it helps them hedge against market volatility — almost 13 points higher than the second-place benefit of supporting consistent investment habits. 

Overall, only 12% of respondents believe removing emotion from trading is DCA’s top benefit. Of all the age groups surveyed, this benefit of DCA was most popular among younger investors ages 18-29, where 22.77% of respondents ranked it as the most significant advantage. Of note, our survey also found that this group is also more likely to try and time the market rather than DCA’ing into the market than older generations. 

Similarly, investors making less than $50,000 a year also believe the most significant advantage of dollar-cost averaging is the ability to remove emotions from trading decisions.

Those making under $10,000 still appreciate DCA’s ability to protect against market volatility (28.95%), while 21.05% believe its ability to remove emotions from decision-making is the top value — more than higher-income investor respondents. 

Otherwise, the most significant benefit of dollar-cost averaging selected by investors earning less than $50,000 is that it encourages consistent investment habits.

Over the $50,000 threshold, the interest in reducing the impact of market volatility increases. Particularly for those earning $175,000-$199,000, of whom 66.96% believe reducing the impact of market volatility is the biggest advantage of DCA. 

Comparatively, just 23%-29% of investors earning less than $50,000 named reduced impacts of market volatility a top benefit. That’s a 43 point difference between the lower-income and higher-income investors surveyed.

This difference might indicate that lower-income investors need more support with investment decisions, including maintaining regular contributions and sticking to a trading decision without emotional influence.

https://preview.redd.it/0ym77irhx5ud1.jpg?width=1116&format=pjpg&auto=webp&s=4cf0e1a245584085dbd32bba65c901c27add7423

Lower-income investors are the most likely to react emotionally 🔍

Our survey found that 59.13% of crypto investors dollar-cost average as their primary crypto investment strategy, while 30.19% try to time the market. However, these results can vary significantly by income. 

When we look at the most common investing strategy across different income levels, the results of our survey indicate that lower-income investors most often choose riskier strategies like trying to time the market. The results also indicate that these investors are more likely to react to market volatility by pivoting their investment strategy than higher income earning respondents. 

Here’s how this breaks down for those survey respondents earning less than $100,000:

• $0-$9,000: 57.89% use DCA, 26.32% time the market
• $10,000-$24,999: 30.77% use DCA, 50.77% time the market
• $25,000-$49,999: 49.49% use DCA, 31.31% time the market
• $50,000-$74,999: 43.48%% use DCA, 43.48% time the market
• $75,000-$99,999: 55.56% use DCA, 31.48% time the market

Crypto investors earning over $150,000 prefer DCA strategies:

• $150,000-$174,999: 66.67% use DCA, 14.79% time the market
• $175,000-$200,000: 75% use DCA, 20.54% time the market
• $200,000+: 77.70% use DCA, 17.48% time the market

It’s worth noting that these results are generally similar across both crypto and non-crypto investments. However, we did find that younger investors are still slightly more likely to try to time the market with cryptocurrencies than traditional assets. 

This divide in the primary investment strategy according to income is also visible when we ask how investors rank their ability to stick to a trading plan when markets fluctuate. 

Our survey found that the more an investor earns, the more confident they are about sticking to their investment strategy. 62.89% of those with incomes over $100K say they have a “very strong” ability to stick to a trading plan when facing market fluctuations, a major jump from the 30% earning less than $100,000 a year that rate their ability to stick to a plan as “very strong.” 

Lower-income earners may face increased risk from trade losses because they assumedly have less cash reserves and disposable income. Even if markets turn against them for just a short term period, lower income crypto investors can be confronted with a difficult decision that forces them to exit their investment. In 2022, only 78% of people making $25,000-$49,999 expect to afford their monthly bills, compared to 94% of those earning over $100,000.

Considering the tradeoff between this financial need and increased risk, some crypto investors with lower incomes may be more likely to stop trading or cut their losses once they see things turn. Losses can end up being relatively more significant to them and their financial safety net may be smaller

Because the price of bitcoin can go up and down rapidly during periods of market volatility, investors across all income levels should consider their risks carefully and do their own research.

Only 8.13% of DCA crypto investors maintain their investment strategy when they face losses, so market fluctuations and narratives can directly affect most of this group’s investment decisions. People using other crypto investment strategies were more likely to stay the course during market turbulence, but how they pivot varies. 

https://preview.redd.it/2efzgjqmx5ud1.jpg?width=1116&format=pjpg&auto=webp&s=2435c839a0ada89b2822fa8b4d8ca4e939f359a9

However, it’s also notable to see that lower- and mid-income crypto investors are far more likely to stick to their strategy when facing losses (though still at relatively low rates) compared to earners making more than $100,000. 

Meanwhile, more than half of crypto investors earning more than $100,000 stated that they had a “very strong” ability to  stick to a trading plan when facing market fluctuations.

https://preview.redd.it/nnfs351px5ud1.jpg?width=1116&format=pjpg&auto=webp&s=109cd1db5daea1888770c0261902f157753b064b

Only 8.13% of DCA crypto investors maintain their investment strategy when they face losses, so market fluctuations and narratives can directly affect most of this group’s investment decisions. People using other crypto investment strategies were more likely to stay the course during market turbulence, but how they pivot varies. 

73.69% of crypto investors watch crypto market conditions more closely than traditional investors 👀

Regardless of investment strategy, investor age or income level, all eyes are on crypto markets. 

Over 55% of respondents say they check crypto markets significantly more than traditional markets. Less than 12% of crypto investors say they watch traditional markets more. 

Still, older investors aged 45+ keep the closest eye on markets. 66% of those aged 45-60 check crypto significantly more often than traditional investments compared to 33% of those ages 18-29. 

High earners are also more likely to watch crypto markets extra closely, while lower-income earners watch crypto markets less than average and have a slightly increased interest in traditional markets compared to other earners. Fewer than 5% of crypto investors earning over $125,000 check traditional investment markets more often than crypto markets.

DCA strategies benefit crypto and traditional investors 🤝

DCA strategies have numerous advantages, like reducing the stress of timing the market and offsetting emotional decision-making. 

These perks are part of why a majority of investors use a dollar cost averaging strategy while investing in both traditional and crypto assets. But it’s not perfect, and the increased risk for certain investors may still drive them to watch the market closely and pivot their strategies to manage volatility. 

Sources like Kraken track crypto prices and performance so you can make better-informed trading decisions when buying and selling highly liquid cryptocurrencies.

Start DCA'ing with Kraken

Dollar-cost averaging offers an easy way for people to constantly build their crypto portfolio.

Kraken allows clients to set up recurring buys on hundreds of different cryptocurrencies, so they can always accumulate coins regardless of the market’s conditions.

Start dollar cost averaging by setting up recurring buys with Kraken today.

DCA on Kraken

Making sure before I buy on the platform. It’s giving me options to buy and sell crypto but not send. Insight appreciated.

How long do deposits take from bank?

After deposit and purchase of crypto, how much time do I have to wait to send it to my offline wallet?

I can’t find a way how to set them at the same time is it possible?