We all know what DCA is, and more or less we all use it based on our preferences.

For the few that still don't know what DCA means or what DCA is (Dollar Cost Average), simply put, it is a strategy for investing your targeted amount while you are splitting the amount in smaller investments throughout the week/month/year, etc. The main purpose of doing that is to avoid buying the tops and missing the dips.

Many new investors risk amounts way more than they can actually afford to lose and this is mainly because of the fear of missing out (FOMO). 

Below I created a chart showing the benefits of investing with DCA constantly. 

The chart is based on the below criteria:

-Prices based on the 15th of each month for the past 2 years (2019-2020)

-Buying 0.025BTC monthly

As you can see below, sometimes the price is higher and sometimes is lower. With DCA our main goal is to invest periodically to avoid going all-in at a peak price. Unfortunately, it is impossible to know the future, therefore, it is impossible to know if you are buying at the peak price. Averaging your investments is less risky but probably less profitable in the short term. Trying to win the market will get you rekt.

If you followed this example throughout 2019-2020 you would have invested on average $182.53 every month and $267.06 in 2020. And you would have owned 0.6BTC by the end of 2020 worthing $11.536,80 while you only invested $5395.03. Not a 1000x but very still attractive returns!

Also below showing your returns for 0.6BTC today!

And this, my friends, is the reason I love DCAing! Having peace of mind while investing in the future and the technology you believe in while also getting some unbelievable returns.

Your 0.6BTC ($5.395,03) is now worth $22.852,89!!

For myself speaking, I find this strategy a peace of mind and I hope it can help you too not going all-in while FOMOing!

Please note: I am NOT a financial advisor and you should not get these returns for granted. This post was created only to help newcomers to understand the possibilities of DCA. You should ALWAYS DO YOUR OWN RESEARCH (DYOR).

You can find my other post about My favorite portfolio for long term holdings here.

Thank you for reading