Here is the fast five of what you need to know about the crypto market in November 2022:

1. Bitcoin has remained rather rangebound for the month of December, having only shed 1.5% of its value so far. There was a brief reclaim of $18,000 USD and this will prove pivotal to break if we want to go higher. Bitcoin's market cap hovers over $300 Billion USD. 
   
2. Ethereum continues to underperform against Bitcoin as the bear market continues. During the month of December it has shed 4.3% of its value. Its market cap floats around $140 Billion USD. ETH has strong support at $1,000 USD and if it holds, puts it in a strong position for a Christmas rally.
3. The total crypto market cap has reflected the sideways price action of the top 2 coins. It currently retains a value of $825 Billion USD, which is approximately 50 times smaller than the total market cap of the S&P 500. Some might say, we're still early.  
4. The best performing coin for the month is currently ZeCash having put in a gain of 5.5%. This is primarily driven by a slight demand for privacy coins, as they tend to do well in a deep bear market.
5. The worst performing token for the month was Filecoin. As it was aggressively sold off due to concerns surrounding DCG, many of the Grayscale altcoin trusts experienced the same aggressive sell off.

• Just over 75% of all exchange volume now comes from Binance
• A loophole allowed FTX to secure its Aussie license without full checks
  
• GBTC hits a new low in its discount relative to its net asset value
• Hedge Fund Sues Grayscale for Data on Battered Bitcoin Trust
• Hardware wallet company Ledger announces new hardware wallet design
• SBF arrested and faces charges money laundering, wire fraud and securities fraud 
• Grayscale will explore returning portion of investor capital if SEC refuses spot Bitcoin ETF
• Ethereum devs target March 2023 as release date for unlocking staked ETH

One of the most battle tested strategies that can provide investors an edge when taking on the markets is Dollar Cost Averaging (DCA). In this month's edition of the Rake Review, we will conduct a beginner's guide to the DCA strategy, where it works best and some of the drawbacks of the strategy. Let's dive in and start learning!

What is dollar cost averaging? 

Dollar cost averaging is the act of making a fixed investment into an asset at a predetermined schedule and interval. For example, on the first Monday of every month, an investor allocates $1,000 to purchase Bitcoin. 

Why is this effective?

• It takes the emotions out of investing and it avoids trying to time the market. 
• By continually buying a fixed dollar denominated amount (e.g. $1000), you will automatically take advantage of dips and buy more when the market is low, (as well as less when the market is high).  This reduces the average purchase price of a volatile asset.

When does it not work?

The strategy can come undone if one overcommits and exhausts their capital allocation too early or invests on a time basis that's too short to give them enough runway. For example, an investor may have $10,000 allocation to use on Bitcoin but chooses to make a $2,000 weekly DCA. In this scenario, they will run out of funds in 5 weeks and be at the mercy of the market for the rest of the year and not have enjoyed the benefits of DCA.

DCA will be less effective if you have a short time horizon or a high risk tolerance that might be better suited to aggressively buying dips.

When can you get started with a DCA strategy?

This is the best part, you can start right away as all it needs is an asset you wish to start averaging into, and to choose a time interval and amount that you'll be able to sustain over the longer period.  DCA can also be used on top of an existing position to reduce the average purchase price and be better positioned for when the bull market returns.

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