The Dollar Cost Averaging(DCA) Strategy: As Long As You Persist, You Can Get Unimaginable Returns.
From May to June, surprises continued in the market: BTC exceeded $ 9,000 in a short time. Litecoin rose 40.35% in 30 days, and EOS rose 39.17% in 7 days.
In the face of the bull market, you might think, how much would I earn if I entered the market in early May? What if I invested enough cyptocurrencies in the bear market last December?
Don’t worry at this time, as the market will change frequently. You may lack good luck to buy at the lowest point and sell at the highest point, but as long as you stick to the DCA strategy, you will get rich returns next time.
What Is The Dollar Cost Averaging(DCA) Strategy?
For beginners in investment, it is difficult to analyze complex data indicators and choose the timing of purchase. So the DCA strategy is benefit and suitable for everyone.
You just need to choose the cryptocurrencies you want to invest in and invest a fixed amount of money every so often. For example, you can plan to invest 10% of your salary on monthly paydays to buy LTC, or you can agree to buy R $100 of ADA every Friday.
The DCA Strategy Can Reduce Costs and Increase Profits
Although the price of cryptocurrencies has great volatility, fixed investment has a lower cost than a single purchase. For example, if you budget $3000 and invest in a cryptocurrency with a unit price of US$ 20:
Compared to a single purchase, the average cost of a fixed investment will be lower.
Persist In The Fixed Investment, And You Will Get Rich Returns
If you strictly implement your fixed investment strategy, the rewards you receive in the end will be quite generous.
Let’s take BTC history as an example: If you buy $100 BTC on the 1st of every month:
Referring to the time point of the two bull markets and two bear markets of the Bitcoin, we can simulate the results of the DCA strategy:
As can be seen from the chart above, the DCA strategy can get rich returns, but what you need to do is:
Patience: In a bear market, you should still insist on a fixed investment. The decline in the price of the cryptocurrencies is an opportunity for you to lower the cost of holding positions.
Sustainability: The fixed investment must be sustainable. As long as you persist in the next bull market, the income will be huge.
Timing: Regardless of the time of entry and no matter when you start to make a fixed investment, as long as you leave the market in a bull market, you will get rich returns.
Bitcoin’s bull market is characterized by “every time the price is higher than the last time.” From the current market view, BTC has just recovered from the bottom of the bear market, but still has not reached a new high.
If you want to implement a DCA strategy, start from now.
The yields in the next bull market may be shockingly high.
