If I had $5 for every time a friend or family member of mine would ask me "Do you think now's a good time to buy 'X' Cryptocurrency?" I probably wouldn't be writing this post right now. Cryptocurrency is and always has been volatile and while it may look like the right time to buy in a dip today, that could all change tomorrow with the real massive dip in price. So usually my answer to that question is "Probably not, but have you heard of Dollar Cost Averaging (DCA)?"
What Dollar Cost Averaging is is buying a fixed dollar amount on a set interval, so you may buy a bit more when the price is lower and a bit less when the price is higher. In the end you should come out with a price that is below the average paid during that time.
Sounds simple in theory but rarely works that way in practice for one reason, humans are emotional. We think we're getting a great deal on something so we bend the rules a little and pay for a bit more, well whoops that day was actually a high day that month. Then on a day that seems to be priced high we don't buy any, well low and behold that was actually the low that month.
Dollar Cost Averaging works when applied rigidly and on a set schedule, it's been a tried and true long term investment strategy in the stock market for a while now. That's just the issue though, it must be applied rigidly and demands consistent effort towards it's application otherwise it will not work. That's where DeltaBadger comes into play, they're a beginner-friendly Dollar Cost Averaging Bot that works with most exchanges and can support all tokens.
For 10% off your first purchase use this link - HERE or use the code SPOONER on signup (this 10% off will remain active whether you make your first purchase tomorrow or 20 years from now). The nice thing about DeltaBadger is if you need to test it out before buying their first plan ($49/year), their basic plan is free for up to $500/year. Forever.
Why Automate Your Crypto Purchases with DCA?
First lets make the case for DCA, and to do that I'll use this quote from the DeltaBadger website -
You buy an asset for a fixed dollar amount on a regular schedule regardless of its current price. You get more of the asset when the price is lower, and less of it when the price is higher. As a result, you achieve a lower average price.
Example: You decide to buy Bitcoin for $100 every month:
In January, the price is $7000, you buy 0.0143BTC.
In February, the price is $5000, you buy 0.02BTC.
In March, the price is $8000, you buy 0.0125BTC.
Your average price is $6410 which is a bit lower than the average price in that period ($6666) since by fixing the amount spent, you adjust how you get more bitcoin than by spending the whole $300 in January at once.
Now I wanna make this clear, this is not a way for people to trade their way out of a declining market and it definitely is not a way to get rich quick, DCA is a get rich slow method. This is simply a way for you to automate and get more Crypto for your dollar over the long haul. This is a great addition for people that are going to be buying Crypto anyway and eliminates the gamble of trying to buy at the right time. It also reduces FOMO (fear of missing out) and panic buying or selling by tempering your emotions knowing you have a long term strategy in play.
To highlight the long-term benefits of DCA, below is an infographic showing what a $100 weekly purchase of BTC over the course of 3 years ($15,700 investment), from 2018-2021 would yield ($115,470) - source: dcabtc.com
Setting up DeltaBadger is pretty straight forward. First you'll need an account at any one of the exchanges supported (Binance, Binance US, Gemini, Coinbase Pro, Kraken, BitBay, Bitso or FTX). For this post I'll be setting it up using Coinbase Pro but I've had it setup with Kraken and Binance US for quite some time now. Once you've got one of your exchange accounts funded with some fiat you'll go to your DeltaBadger account and click the exchange you're using. A new bit of info should pop up explaining how to setup your API Key (Binance is much more complicated than this).
Once you follow the instructions there it will ask you the interval you'd like to purchase and if you'd like to use Smart Intervals, I personally have it turned on but it's up to you. They have a pretty good explanation on the DeltaBadger site so I won't try to re-do it here.
Then that's it, once you click Start and have it setup you can forget it. As long as you have enough funds in your exchange account you will continue to place buy orders and reap the benefits of Dollar Cost Averaging!
Final Thoughts & Results
Even though it's in the title of this post I don't usually like sharing what my earnings are on projects. I hate sharing personal information like profits or income for many reasons I won't go into here. However for this I will share because I think sound investing strategies like DCA and DeltaBadger could definitely help people.
I personally have been using DeltaBadger with a $100 investment each week since March of last year and that ~$6,000 investment has turned into a little over $40,000. That's not insane money but it has kept me from buying into each dip and rise on the crypto market, allowing me to invest some of my money soundly and let it stack.
Since I have some of my funds allocated to a stable investing strategy, it frees up the rest of my funds to invest in higher risk/higher reward projects and thus further increase my profits.
As per usual I'm not a professional and this is not investment advice, this is just a tool I found helpful but I do think the results speak for themselves. If you're already having great success with whatever you're doing by all means ignore this! But if you'd like to have a steady investment into a coin you planned to pickup anyway, DeltaBadger may be for you!
If you missed it above you can get 10% off your first purchase by using this link - HERE or by using the code SPOONER on signup (this 10% off will remain active whether you make your first purchase tomorrow or 20 years from now).
Thanks for reading, if you enjoyed don't forget to follow, like and tip. If you didn't enjoy still thanks for clicking in on this post and let me know what you disagree with! Either way happy earnings!
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