Would you like to invest in Bitcoin, but do you find that the whales make the price to unstable? The Dollar Cost Averaging is a great way of investing for you.
In this article, I’’ use the data from www.dcabtc.com
The idea of DCA is that you use the highs and lows more effectively than normal investors. Normally, they will search for a high and buy at a low price. The problem with that, is the difficulty of timing the market. Hence, this is almost, if not truely, impossible.
When you invest with DCA, you have to be disciplined enough to buy frequently and to HODL in between. Sure, it’s by far not the most sexy way of amassing your digital tokens, but hey, in the long run, you may very well have the well deserved benefits.
Example of DCA
‘’It’s January 1st, 2018, and John decides to purchase $5,000 worth of Bitcoin today. The Bitcoin price at the time was $13,800 per coin, which means that John now owns 0.362 BTC. It’s January 1st, 2018, and Alice decides she wants to purchase $5,000 worth of Bitcoin. However, instead of investing the entire amount today, she decides to purchase $500 every month, for 10 months. 10 months later, Alice owns 0.61 BTC. That’s almost twice as much as John, even though both invested the same amount. - www.dcabtc.com
On the website, you can fill out all you investing information and the tool will automatically show the amount of profit you would have had when you would have made the investment earlier.
Warning: this is no financial advice. Take responsibility for your own profit and loss.