The power of Dollar cost Averaging?

DCA or dollar cost averaging

Is an investment strategy that aims to reduce risk! By spreading your investment over a period of time. Crypto currency is a very volatile market so if we can reduce some of the risk, its in our best interest.

For instance perhaps historically the lowest lows of a particular market fall on a Friday!, this will be your dollar cost average day! The benefit is regardless of market sentiment bullish or bearish, you wont be worried, because you are dollar cost averaging over time which will smooth out 'market sentiment'.

Where as if an investor had put in a lump sum of $1000, at the height of a bull market, and it collapsed 50% (extreme example), not only has he lost half his shares value but no longer has any money to invest! Where as If he had been dollar cost averaging he would be buying up shares at 50% discount ! I hope this example demonstrates how DCA can be a powerful tool!

Is it also more practical? many of us do not have thousands to invest at any one time. So this strategy benefits those who have a steady job, and have allocated X amount from there salary to invest over time each month.

In my last post i talked about eliminating financial waste! If we practice that! We can delegate more funds into our DCA technique.

Proof

Here is an example of a popular youtuber bitsizebitcoin, check him out!

He dollar cost averaged every week into lite coin for over a year! for a total investment of $5100, but made over $141,000!
If youd like to see his spreadsheet i have linked it below

https://docs.google.com/spreadsheets/d/1TG-ixvTqcuCURqZfq3a8VJxexIXl7Mh_OQe1VgO8dO0/edit#gid=768703929

Disclaimer : All investing is speculative. This isn't financial advice. Just one man's opinion of a complex fractal world with infinite variables, affecting the system, at exactly the same time.

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