The Importance of Dollar Cost Averaging
Dollar cost averaging is an important tool in the Bitcoin investors toolkit.
Dollar cost averaging or DCA is an investing method where the trader sets an amount and a timeframe for recurring purchases of an asset. The purpose of this method is to reduce the impact of volatility, and as I’m sure you’re aware, volatility in this market is high. With regular 30% daily swings, and huge monthly drawdowns and parabolic moves up it’s incredibly hard to time this market. Unless you are an experienced trader, sometimes it’s best not to try, and simply DCA.
To give you an example of the benefits of DCA, if you bought $10 dollars of bitcoin every day for the last 3 years you would have invested $10,960, but it would be valued at $52,473…a 390% gain.
If that’s not enough to convince you to start DCA, maybe the original HODLer can…In this post that created the HODL mantra, its explained….eloquently (?) why its best to DCA
Head over to the following services to begin dollar cost averaging:
Strike – sign up and receive $5 – Strike operates on the lightning network, DCA with as low as $1 per purchase with no fees. You can purchase hourly if you feel so inclined!
Swan Bitcoin – sign up and receive $10 worth of bitcoin – offering daily, weekly, and monthly purchase options, set your recurring buy and forget about it and let those sats stack. Swan also offers free withdrawal of your bitcoin to another wallet.
Amber – sign up and receive $10 worth of bitcoin. Invest with as little as $5 per purchase – get started now!