Post
Topic
Board Bitcoin Discussion
Re: DCA method
by
nullama
on 12/09/2024, 03:36:37 UTC
DCA strategy is always a long term profitable strategy. The DCA strategy is for middle-income people, that is, those who don't have a lot of money but are interested in investing in Bitcoin. If such a person had started investing in Bitcoin 5-10 years ago, he would still have made a lot of profit.

As an example I am showing a DCA chart for the last 5 years: ~snip~

Here you can see that if a person had invested $50 on a monthly basis using DCA 5 years ago today, his total investment portfolio would have been $3000 today, and holding these 5 years his profit portfolio would have been worth $6926, which is his investment, 230% more than that, and his total savings would have been $9926. Also it's current price is $56,185, so imagine if you continue investing like this, and when Bitcoin crosses 100K, then how much be your profit? This will benefit you considerably. So always think of DCA, it is the best way to invest. This will benefit everyone in the long term holding.

The thing is that comparing DCA with lump sum will always depend on the actual prices in the period of time involved.

Using historical data you can always move around your window until it fits either DCA or lump sum as the better strategy.

So, in some cases DCA will be the better strategy and in others it will be lump sum at the beginning.

In a simplified way, if the price goes up, lump sum is better, but if the price goes down DCA is better because you end up with more Bitcoin for your fiat in the end.