A dollar cost averaging strategy can be the best way to invest in assets if you are not ready to invest a lot of time in research.
One of the most popular Bitcoin investment strategy Dollar Cost Average, which requires the purchase of a fixed asset if its value gradually declines over time. The strategy allows covering losses when or if the asset enters an uptrend.
The main advantage of DCA is the lack of expertise required to achieve significant long-term profits. Despite the almost 80% correction in BTC, investors who bought the asset in 2018 or even 2019 still made a profit.
Thanks for the volatility first cryptocurrency, it is possible to cover almost 100% of its own losses after each correction cycle by buying above the local. But to do this, investors need a certain knowledge of market structure and technical analysis. A simpler version of the strategy is to buy an asset on a certain date.
the result of his strategy
As mentioned, a popular way to open a certain asset is to buy it on a certain date. Smaller retail investors sometimes prefer to buy BTC every Monday throughout the year.
For example, the average price through 2016-2019 will be at $1,494 for the average investor. If someone enters the market relatively late, in 2020, the average entry will be at $18,373, which makes investors profitable at the current BTC price.
One of the most profitable and yet unreal entry ranges is 2017-2020, the cycle when Bitcoin goes through the first wave of adoption. The average entry price for investors in the “ICO era” will remain at approximately $4,378.
At press time, Bitcoin was changing hands at $19,792.