Bitcoin vs Ethereum Dollar-cost Averaging: Which is Better?
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It’s an age-old debate for anyone in crypto, for both veterans and noobs:
Which is more profitable — Bitcoin (BTC) or Ethereum (ETH)?
Specifically for this piece, which one performed better in dollar-cost averaging (DCA)?
What is DCA, and why is it appealing to many?
DCA involves investing the same amount of money at frequent intervals (e.g., $200/month) over a given period, irrespective of an asset’s price.
It is preferred by people seeking a simplified approach to digital assets, let alone investing. This can be useful for beginners or risk-averse investors jumping into a market and understanding technical analysis and macroeconomic trends.
Methodology and assumptions
- I took the closing price of BTC on the 15th day of each month, based on statistics provided by CoinMarketCap, and stuck with this date for consistency.
- I opted for a plausible figure of US$200 per month in each asset = $2,400 per year.
- The DCA investment intervals range from…