A clear explanation goes for those who were overbearing by Bitcoin as far back as 2021, they bought the coin at $68,000 in the name of having believed in Bitcoin and DCA strategy is supreme, can they still be in profits after over 3 years (in 2024) judging by the current price of Bitcoin? The answer is a capital NO.
Why not, unless you never buy again after that.
When you buy with DCA, you are essentially automatically buying at a lower average price. Let’s say you buy 1 bitcoin at $68k, then you buy another bitcoin at $60k, another one bitcoin at $55k and another one at $50k, so you have roughly spent $233k to buy 4 bitcoin. At the current price, you still have $20k in profit because your average buy price was lower. At least that’s how the system works when you talk about strategy, but everyone has their own measure.
In a more obvious case, Michael J. Saylor has made huge profits from his DCA strategy on bitcoin. So why should we doubt him for the long term?
This is why we should rather be reasonable than be brainwashed by a certain strategy. No doubt, the DCA strategy is a very good one, still, the right applications matter depending on the market condition and not just buying and buying even as the market is clearly at an overbought region.
Yes, there is no perfect strategy, but you can perfect it yourself by developing it. You are free to choose any strategy that you think is profitable, but whatever you think is profitable sometimes does not apply to others, and vice versa.