This involves constant purchases of assets, even if their prices decrease over time. This strategy can be used to cover losses when an asset goes up or vice versa.
DCA’s main advantage is its lack of technical expertise that can be used to make large long-term profits. Investors who bought the asset in 2018 or 2019 still make a profit despite the nearly 80% correction in BTC.
Due to the volatility of the initial cryptocurrency, almost 100% of your losses can be covered by buying at the local top. An investor will need to have a basic understanding of the market structure and technical analysis in order to achieve this. An easier version of this strategy is to purchase an asset at certain times.
We have already mentioned that it is a popular way of exposing yourself to an asset is to buy it at a specific date. Sometimes, smaller retail investors prefer to purchase BTC every Monday throughout a year.
The average price for an investor would be $1,494 between 2016 and 2019. A late entry in the market would result in an average entry of $18,373. This puts investors in a position to make a profit at current BTC prices.
The 2017-2020 cycle, which saw the first wave in adoption of Bitcoin, is one of the most lucrative and realistic entry points. An investor would need to pay approximately $4,378 for the average entry price in the “ICO era”.
Bitcoin Currently stands at $19,778 as of press time