We write more often about dollar cost averaging (DCA), or the average periodic purchase of bitcoin. At the moment, sentiment is not too good, because the price has been falling for a few weeks. Nevertheless, DCA appears to be resistant to these decreases. If you had bought every week for 10 dollars from the beginning of this year, you would have been in the plus for almost 50%.
Average purchases in 2019
Don’t you believe us? Cryptocurrency influencer Anthony Pompliano says the same thing. We actually say the same thing as he does at the moment, but at least we agree.
0 / If you bought $ 10 or Bitcoin each week for the last year, you would be up 49% currently. pic.twitter.com/EJAzSlmdj6
– Pump ? (@APompliano) November 25, 2019
Average purchases from January 2018
The bitcoin rate in 2019 shows a better trend than the rate in 2018. Because 2018 is primarily known for the bear market. But even in 2018 the argument for DCA can be defended. If you had bought $ 10 in bitcoin every week from the beginning of 2018, you still have a return of 27%.
2 / If you bought $ 10 or Bitcoin each week for the last three years, you would be up 156% currently. pic.twitter.com/sBuxZRTWTr
– Pump ? (@APompliano) November 25, 2019
Average purchases from January 2017
It is even more fun to include 2017 in this. If you bought $ 10 in bitcoin every week since the beginning of 2017, you have a return of 156%. To put that in perspective, if you had bought $ 10 on the AEX shares every week from January 2017, you would have a return of almost 11%. And if you applied the same to gold, you would have a 13% profit.
3/3 Lots of fear and fatigue in the Bitcoin market recently.
Those who remain disciplined and stick to a simple plan are able to ride the ups and downs without worrying.
You can do your own research at https://t.co/lF4wrXovKj
– Pump ? (@APompliano) November 25, 2019
Do you want to calculate your return on investment? Then use the tool from dcabtc.com.
Always look at the long term
These are impressive figures and argue why DCA is a good strategy, but above all why bitcoin is a good investment in the long term. Certainly at moments like this, where the daily candles have been red for a few weeks, it is good to keep the long-term perspective in mind. DCA even works in a bear market like that of 2018, with the price starting at $ 18,300 and the year ending at $ 3,870.
So, if you panic because the price is extremely volatile again, think carefully about selling (or buying) bitcoin. For the time being, the long term shows that the return is good. And certainly in the run-up to the block halving of May 2020, where much is expected in terms of price action.
Set off with your salary
And not unimportant, average shopping provides you peace of mind. You are less dependent on the whims and the chaos of the race. If you do not know how to start with DCA, you could agree with your employer that part of your salary will be paid in bitcoin every month. Then you don’t have to worry about it anymore. We can help you with that.
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