Who says you need to be a trader to make money in BTC?

in GEMSlast year

Dollar cost averaging may be the simplest method for returns

PlanB, infamous for his stock to flow model, just put out a report showing that dollar cost averaging may be your easiest path to riches.

Well perhaps not riches, but to seeing a nice return on your money.

And you don't have to pay attention to any charts or technical indicators or anything of the sort.

All you have to do is buy in increments and then HODL and then sell in increments and you will see returns...

Sounds a little vague I know, but I'll go into a bit more detail below.

How does it work exactly?

Well, according the to report, all you have to do is dollar cost average (DCA) in one year, then wait one year, and dollar cost average (DCA) out the following year.

So, it's a total of a 3 year process.

For example, had you DCA in 2017, sat out 2018, and then DCA out in 2019 you would have seen 70% returns on your money.

Check it out:


(Source: https://twitter.com/100trillionUSD/status/1268217099433979904)

Big deal, so you timed a great spot in the market...

Well, according to PlanB's research, it really doesn't matter when you DCA in or out.

The results are pretty much the same:

“It doesn't really matter much because the (historical) odds are 9 to 1 that you earn a positive return”

It sounds like a sure fire way to make money, at least historically it has been. As you know past results do not necessarily predict future performance.

However as they relate to bitcoin and the halving cycles, they may play out in a similar fashion more often than you think...

Here's the really interesting part...

Lets say you are more of a savvy investor than the average Joe and lets say you do a bit of halving cycle timing in your bitcoin investing.

Lets say you DCA in and out around the halvings..

Lets say you DCA in during the second half of 2018 and you DCA out in the second half of 2021... what do you think your returns might look like?

I think there is a very good chance you would blow that 70% number out of the water!

You don't even have to time it around a specific price but instead a specific period of time as it relates to the halving cycle.

Anyways, might be worth trying the next time around if you already missed your shot during this cycle...


(Source: https://analytics.skew.com/dashboard/bitcoin-futures)

Bitcoin still the king of 2020...

And if you have forgotten already, it was also the king of 2019 as well.

Stay informed my friends.