Why Kenyan Investors Are Turning to Dollar-Cost Averaging in Crypto Markets

By Benadeta Mwaura - Reporter

Kenya, 19 December 2025 - As volatility continues to define global cryptocurrency markets, a growing number of Kenyan investors are adopting dollar-cost averaging (DCA) as a safer way to participate in digital assets, according to recent market analysis and investor trends.

Dollar-cost averaging is an investment strategy in which investors commit fixed amounts of money at regular intervals into assets such as Bitcoin, other cryptocurrencies, or stocks, regardless of short-term price movements.

By spreading purchases over time, the approach helps reduce the risk of entering the market at peak prices, smooths out volatility, and minimizes emotional decision-making, making it especially attractive in unpredictable markets.

The shift comes as major digital assets show mixed performance.

Bitcoin is trading near $88,000, while Ethereum is hovering around $2,970, both well below their 2025 highs but showing signs of cautious recovery.

While gold has traditionally been viewed as a safe-haven asset during periods of economic uncertainty, its appeal has recently diminished for some investors due to slower returns, high entry costs, and limited liquidity compared to digital assets.

In previous market shocks, many investors rushed to gold as a store of value, but its price movements have often been gradual, making it less attractive to younger and tech-savvy investors seeking flexibility and higher growth potential.

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Additionally, physical gold carries storage and security costs, while digital access to crypto and equities allows for easier, smaller, and more frequent investments, aligning better with strategies like dollar-cost averaging.

Analysts say uncertainty around global interest rates, regulatory scrutiny, and institutional investment flows continues to weigh on crypto sentiment.

At the same time, traditional stock markets have shown relative resilience, with U.S. equities recording gains led by technology stocks. This contrast has prompted many investors, including Kenyans, to reassess risk exposure and favor disciplined, long-term strategies over speculative trading.

Locally, Kenya’s evolving regulatory landscape is also shaping investor behavior. Proposed rules requiring higher capital thresholds for crypto firms and stronger consumer protections are expected to professionalize the sector and reduce fraud, encouraging more measured participation rather than rapid speculation.

Market analysts note that while DCA does not eliminate risk, it promotes financial discipline and reduces emotional decision-making, a factor increasingly appealing to younger investors navigating both crypto and traditional markets.

As Kenya’s digital finance ecosystem matures, experts say the growing use of structured investment approaches like dollar-cost averaging reflects a broader shift toward risk-aware investing rather than short-term gains.