Accumulation Scheme

Definition ∞ An accumulation scheme involves systematically acquiring digital assets over time. This method strategically purchases assets at various price points to build a larger holding. Its purpose is often to reduce the average acquisition cost or prepare for anticipated market movements. Such schemes are frequently employed by long-term holders or institutional investors to minimize market impact during substantial acquisitions.
Context ∞ Discussion often surrounds the influence of large-scale accumulation schemes on market liquidity and price stability within specific digital asset markets. Observing these patterns can provide insight into the sentiment and long-term positioning of significant market participants. Future developments may include more sophisticated automated accumulation protocols to enhance efficiency.