One of the best known and simplest bitcoin (BTC) investment techniques out there is DCA. This activity, called thus by “dollar cost avarage”, consists of investing the same amount of money in a systematic way every certain time. It can be every year, semester, month, week or whatever is most comfortable for the investor, as long as it is maintained for a scheduled period.
In this way, the DCA technique allows averaging the investment made in the long term and increasing savings if the value of the asset rises. Precisely, investors who made the same bitcoin purchase every month during the last year until today managed to increase the value of their funds by 38.73% (measured in dollars), as revealed by dcaBTC data.
How to use the DCA technique?
If you bought a small amount of $ 25 worth of Bitcoin last year, you would spend a total of $ 300 and today you will have $ 416, which is an additional $ 116. The same applies to larger amounts.
If the savings rate is higher, you would spend a total of $ 1,500 buying $ 125 of Bitcoin per month last year, and today you will have $ 2,080, which is an additional $ 580.
Those who are likely to get more, like $ 1,000 per month in BTC during this period, will spend a total of $ 12,000, and today they will have $ 16,647, which means a profit of $ 4,647.
Buying bitcoin every month reduces the risk ?. The answer is Yes
The famous Colombian analyst, Juan Rodríguez believes that although the price of BTC may fall in the short term, funds may be lost in the short term, but at the same time he believes that this is a profitable opportunity to buy at a lower price. This is due to the fact that he believes it will increase in the long run. In other words, depending on your idea, it always ends in profit. Therefore, he plans to continue this investment for five years.
So now you know, in the footsteps of little ants, we will become great whales