Tip for newcomers: don't go all-in but buy bitcoin at set times

Jared has been in cryptocurrency for years and he shares his experiences on Medium. In one of his latest articles, he argues for “dollar cost averaging” or your crypto purchasing resources. And that is certainly interesting for newcomers who want to invest for the long term.

Contents hide

1 Am I too late to board? Do I have to wait a little longer?

2 What is resources?

3 The benefits at a glance

4 Related posts:

Am I too late to board? Do I have to wait a little longer?

Not so long ago, Bitcoin crossed the border of ten thousand dollars. If you look at the rate of 2019 you will see that bitcoin is on the rise. We started the year rocking between three thousand dollars and see where we are now! Now the question is for many who do not yet have a bitcoin but would like to get in: am I late? Do I have to wait for a lower buy-in price?

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The same question is not only being asked now (when passing a value of ten thousand dollars), it was already asked in January of this year. “Do I have to wait until bitcoin is under three thousand dollars?” After all, the right moment is almost unpredictable in such a dynamic market.

Did you know that if you just bought $ 1 or Bitcoin every day for the last 9 years you would have turned ~ $ 3,285 into about $ 18M by accumulating 2189 BTC? Just launched a tool to explore how DCA strategies would have performed using historic btc prices! https://t.co/DohCQ7C9S8
– John Cantrell (@ JohnCantrell97) June 14, 2019

What is resources?

Investopedia describes dollar cost averaging as follows: “Dollar-Cost Averaging is a strategy that allows an investor to buy the same dollar amount or an investment at regular intervals. The purchases occur regardless of the asset’s price. ”So you buy bitcoin for a fixed amount at a fixed time in the week or in the month. Regardless of how the price is at that moment.

A few examples:

Suppose you have a thousand euros to spend. Instead of spending that amount in one go on bitcoin, you can also choose to buy in every week on Monday at 09:00 for one hundred euros for ten weeks. This makes your portfolio less vulnerable, the chance that you have purchased at the highest point is smaller.
Another commonly used strategy is to make funds based on when your salary is paid. Spend two percent (or more / less) every time you get paid your salary to stock up on crypto.

The benefits at a glance

Jared lists the benefits of resources:

You run less risk than with large purchases or then go all-in.
You relieve stress to time to step in.
You have a lot less trouble with FOMO, because you purchase on average.
You build up your portfolio gradually, so you keep your interest in bitcoin, even if the price drops.
The impact of volatility in the short term is eliminated, because it is about the long term.
The tweet below explains that the most upward action of bitcoin is achieved within ten different days per year. You will experience all of this.

2 / Reminder that BTC generally generates all of its performance within 10D or any year.
–Ex the top 10 days, BTC is down 25% annually since 2013 pic.twitter.com/zoEocEEZvu
– Thomas Lee (@fundstrat) April 2, 2019

This is not an investment advice but a summary of the Jared on Medium article.

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