Without All the Stress, here is Low-Risk Bitcoin Investing With Dollar-Cost Averaging Crypto Profits.
A better mode of investment is DCA. What do you know about it? Is it worth investing in?
It was found in the last decade, those bitcoin prices, as well as a number of other digital assets, have thereby grown significantly in value. During the cryptocurrency’s earliest days of price discovery, some people have made millions and even billions throwing down everything they have. A scheme that’s considered far less risky and can still bring a cryptocurrency investor decent profits over the long term, however, there’s another method of investing called dollar-cost averaging or DCA.
The digital currency has continued to gather a higher value after surpassing the $20k zone ever since bitcoin jumped over the crypto asset’s all-time high (ATH) recorded in 2017. After the crypto asset jumped over the $42k range, then bitcoin tapped a new ATH ten days ago. Some newer coins like Polkadot and Chainlink also touched price highs additionally as a number of alternative digital assets are nearing their 2017 ATHs.
It has produced significant gains for these risk-takers as now many people were able to invest in bitcoin, Ethereum, bitcoin cash, and many other coins early. Called dollar-cost averaging or DCA there is another method of investment that people have been leveraging for a very long time.
It was here that in intervals that are scheduled regularly, it is essentially the DCA method of purchasing that then involves buying a set sum of cryptocurrency. Than throwing all the funds down at once and waiting for profits, this contrast is quite different. Purchasing $10 in bitcoin per week for a three year or longer period of time is an example of DCA buying would be.
Far less risky as well, buying in this manner is considered less of a strain on emotions. No matter what the cost of bitcoin or the other cryptocurrency costs at the moment in time, the scheduled intervals of buying takes place. The investment cost will be measured in a mean average then if you aggregate the number of purchases per week, and standard price from the purchases over the three-year period.
What Can A DCA Investor Do?
A DCA investor can do extremely well for themselves in a much slower and less risky manner moreover, depending on the crypto asset’s market performance.
In estimating the interval of purchases over time and the mean average throughout the time period, there is also a website that can help you. If you have already been leveraging the DCA scheme you can check the profits of your current BTC investment as the web portal dcabtc.com offers a calculator in order to figure out your DCA metrics over time.
During the last nine years, here’s a great example of DCA purchasing over time with an investment of $1 per week into BTC. Now as today’s exchange rates are used, dcabtc.com explains that the purchasing of $1 of BTC since January 2012 that is every week for nine years when started nine years ago would surely have then turned $470 into $289,295. Throughout nine years, that is a whopping 61,452% gain in value.
They would have seen a 361% increase now if the person started three years ago and invested $10k per week into BTC every week for the last three years. During the three-year timeframe, that method of DCA purchasing would have made $1,570 turn into $7,249. For both DCA and just throwing down all the funds at once, of course, the period when you start investing does make a difference.
Due to bitcoin’s price fluctuations, timing is key and sometimes earlier doesn’t make a difference either. At a low of $3,800 per unit is a good example of this as if someone invested one large sum into BTC on March 12, 2020. Over the course of time up until January 17, 2021, using today’s BTC exchange rate shows that investment would produce a whopping 821%.
As a person can invest without putting much emotional energy into playing the lows and highs like the aforementioned lump-sum investment dollar-cost averaging is still far less stressful. Keeping an eye on breaking crypto-related news stories and keeping tabs on industry heavyweights, DCA investors don’t have to put a lot of time and effort into studying market charts. The investment can be calculated over extended periods of time without much worry as the funds are simply invested without many time-consuming activities.
The stress-relieved from trying to time crypto markets is insurmountable as the crypto investor who calculates with a DCA approach doesn’t care that the market is not predictable. Things that some people just don’t have the time to apply to throw it all down at once and trading cryptocurrencies successfully take time and research.
Catching highs and lows can be difficult as a DCA investor understands that the price of bitcoin changes very often. Showing holding digital assets for a long period of time has so far been an extremely profitable means of investing is whereas long term perspectives, logarithmic growth curves, and overall rising interests.