What If You DCA $25/Week Into Bitcoin Since 2017?

Question

With Bitcoin's price fluctuating around 93k, there is no shortage of conversations about its continuously increasing value. So what if you had joined in 2017 and DCA-ed (continuously invested a predetermined amount of money into a specific asset, regardless of its current market price) $25 per week? Let's analyze together. Starting from 2017, if you invest DCA $25 a week, now you will have an investment of about $10,450. So, your investment will yield about $16,946.00 in gold or about $15,358.23 in stocks. However, for Bitcoin, that number will be $133,689.39! This figure is more than 8 times the stock profit and more than 7 times the gold profit. Although this is a "what if" scenario, it shows the strong growth of Bitcoin in recent years and the potential for dollar cost averaging.

What Does DCA Do? The main function of DCA is to reduce market volatility by investing a fixed amount of money at regular intervals to mitigate the impact of market fluctuations. It is also beginner-friendly because it simplifies investing, allowing those with limited knowledge or experience in the market to access it. Furthermore, DCA eliminates the need to constantly monitor the market and obsessively check if it is performing well or not. Therefore, it has become a popular strategy, as last year's survey showed that up to 59% of cryptocurrency investors prefer the dollar cost averaging method as their main investment strategy. However, please note that DCA does not provide any guarantees and you may miss out on higher profits if the market continues to rise during your investment period. Therefore, it is not suitable for everyone. In that case, if you decide to try DCA in cryptocurrencies, start by selecting the cryptocurrency you want to invest in. Next, set your investment budget and contribution frequency. Additionally, make sure to thoroughly evaluate your financial situation, as well as any necessary research. DYOR! #Write2Earn #Write&Earn $BTC {spot}(BTCUSDT)

WhatToBuy,WhatToBuy · Accepted Answer

Tonight's non-farm payroll report has caused a lot of bloggers to spread panic. I think the viewpoints are exaggerated. Market declines are all pre-emptive reactions. The non-farm payrolls determine the probability of a rate hike in January, and the 12.18 monetary policy meeting itself has already released the expectation of no rate hike in January. The recent adjustment is just the presentation of the result, which has been almost digested by the market. Therefore, the expectation of no rate hike is established, and the market reaction caused by tonight's non-farm payrolls is not so exaggerated.
The market rises and falls like waves. The US stock market was closed yesterday, and last night's Rebound in the Asian market was a natural resistance from long positions. With BTC's daily chart showing three consecutive declines, a Rebound is necessary, and this Rebound must be accompanied by trading volume. Therefore, tonight we need to bet on a Rebound, rather than continue to short (at low levels). The price pulling back to 95,000-96,000 is expected today.