Between November 2021 and November 2022, Bitcoin lost 77.6% of its value. However, some investors who bought the cryptocurrency at its all-time high of $69,000 are profiting 10% from the recent rally of the largest cryptocurrency in the market.
We are talking about investors who have adopted the monthly contribution strategy, also known by its acronym DCA (Dollar Cost Averaging).
The method has its advantages. While it avoids overbuying at a higher price, it also allows for positions when the market is low. Perhaps more importantly, DCA wastes no time following news and charts and still delivers good results.
Whoever started DCA at the top of Bitcoin is already making a 10% profit
Besides the average price, which reduces the risks associated with Bitcoin’s volatility, another advantage of monthly contributions is the flexibility.
That is, while a European investor has been buying 400 euros (R$2,250) worth of Bitcoin per month since 2017, a Brazilian can invest a smaller amount, based on his reality, but get the same percentage return. The strategy is so famous that even Jack Dorsey, founder of Twitter, uses it.
Another point that proves the efficiency of the method is that all the investors who started this strategy when Bitcoin was at its all-time high are already making a profit.
“People who started using DCA to invest in Bitcoin at its all-time high of $69,000 are now making a 10% profit.”
JUST IN: People who started DCAing into #Bitcoin at an all-time high of $69,000 are now up 10% 🚀 pic.twitter.com/upyrzL6OFU
— Bitcoin Magazine (@BitcoinMagazine) March 20, 2023
As explained by an investor, the technique requires “patience and nerves”, but it works. In other words, Bitcoin’s 2022 crash may have alienated some investors, but it rewarded those who stood firm.
Finally, for example, those who bought $100 (R$523) per month in Bitcoin since November 2021 managed to add about 0.0642 BTC with their 17 contributions (US$1,700). Today that amount is worth $1,816.
Michael Saylor is still in the red
Another investor followed by the community is billionaire Michael Saylor. His company, MicroStrategy, has bought 132,500 in the past two years for a total of $4 billion.
The average price is $30,415 per BTC, which means that MicroStrategy is still losing as Bitcoin trades at $28,275, but that is about to change. After all, analysts point out that Bitcoin has a clear path to $32,000.
Anyway, Saylor has already stated that Bitcoin is a long-term asset. However, it is worth remembering that the billionaire did not apply the DCA strategy, but it could have helped him.
Source: Live Coins
Barry Siefert is an accomplished journalist and author at The Nation View. He is known for his expertise in the field of cryptocurrency, and has written extensively on the topic. With a background in finance and economics, Barry has a deep understanding of the underlying technology and market forces that drive the crypto industry.
