Main navigation

Here Are Results of One of Most Popular Bitcoin Investment Strategies

Sun, 09/04/2022 - 10:13
article image
Arman Shirinyan
Dollar cost averaging strategy may be best way of investing in assets if you are not ready to invest too much time in research
Here Are Results of One of Most Popular Bitcoin Investment Strategies
Cover image via

Disclaimer: The opinion expressed here is not investment advice – it is provided for informational purposes only. It does not necessarily reflect the opinion of U.Today. Every investment and all trading involves risk, so you should always perform your own research prior to making decisions. We do not recommend investing money you cannot afford to lose.

Read U.TODAY on
Google News

One of the most popular Bitcoin investment strategies is Dollar Cost Averaging, which requires constant purchases of assets if their price gradually decreases over time. The strategy allows covering losses when or if an asset enters an uptrend.

The main advantage of DCA is the lack of expertise one needs to successfully gain significant profits in the long term. Despite the almost 80% correction on BTC, investors who purchased the asset back in 2018 or even 2019 are still in some profit.

Bitcoin chart
Source: TradingView

Thanks to the volatility of the first cryptocurrency, it is possible to cover almost 100% of own losses after each correction cycle by purchasing at the local top. But in order to do that, an investor would need certain knowledge about the market's structure and technical analysis. The simpler version of the strategy is to buy an asset on certain dates.

Strategy's results

As we have mentioned, a popular way to expose yourself to a certain asset is to purchase it on a certain date. Smaller retail investors sometimes prefer purchasing BTC every Monday throughout the year.

For example, the average price through 2016-2019 would be at $1,494 for the average investor. If someone entered the market relatively late, in 2020, their average entry would be at $18,373, which puts investors at a profit at the current BTC price.

281 Billion SHIB Shifted by 3 Mysterious Wallets, Here’s Where These Coins End Up

One of the most profitable and yet realistic entry ranges would be 2017-2020, the cycle in which Bitcoin went through the first wave of adoption. The average entry price for an investor in the "ICO era" would stay at approximately $4,378.

At press time, Bitcoin is changing hands at $19,792.

article image
About the author

Arman Shirinyan is a trader, crypto enthusiast and SMM expert with more than four years of experience.

Arman strongly believes that cryptocurrencies and the blockchain will be of constant use in the future. Currently, he focuses on news, articles with deep analysis of crypto projects and technical analysis of cryptocurrency trading pairs.