What $ 1 investment in BTC can do to your portfolio ?
What this could do to your portfolio ?
This would amount to over 310 weeks of $ 1 invested and this comes to $310 in terms of fiat dollars.
Now what this does to the value of crypto ?
Starting with your first purchase which was at a price of $ 909 per btc and made a purchase every week.
This would mean you make purchases every week without bothering about the up or down trend of the markets.
This would lower the cost of purchase over time and as a result the $ 310 investment would be equal to $ 859.7 or up by $ 549.7
In percentage terms this would be up by 177.32 %
Let us say you wake one day and realize that it is not 2022 but Ist Jan 2017.
Going back in time you carry the knowledge of crypto and decide to put $ 1 into btc every week.
This is the DCA or the dollar cost averaging strategy
Here since you are making incremental purchases and if you are patient and do this long enough you could be in the money.
Do not let emotions come in
However for this to work you have to be persistent with your investment.
Is this scalable ?
Sure if instead of $ 1 you make it $10, $100 or $1000 the resulting amount would be accordingly multiplied.
Why it fails for some people ?
It would fail for people because most people fail to maintain the routine. They start and miss to follow up the purchases or think of it as a short term strategy.
If you started your DCA when BTC was at $68000 and continued it till now you would be in negative territory and new investors make get scared and give up watching so much red in their portfolio.
DCA with power up is a potent mix
What if you power up hive and with the curation rewards earned you fund your DCA strategy.
This seems doable would require persistence .
One would delegate to a voting account and the liquid returns would be used for running the DCA strategy.
What are your thoughts about this twist to the DCA investment strategy ?
Please share in comments below.
This is where DCA works but you said it right, its not a short term strategy and you need to put emotions aside and invest. Suppose if you bought at $68,000 then buy at $50,000 then $40,000 or whatever value until it reaches bottom. Your average buying will then not be at $68,000 but it will be much lower and once the market starts to recover or even the BTC reach $68,000 you will be in profit :)
very rightly put :)
Thanks for stopping by and sharing your view.
This is what exactly happens wih the people they forget to add smalll portion of the bitcoin regularly reason being lack of consistency or you can say that they are not able to follow their routine. This is called SIP and it's most working strategy for retail investors. thanks
thanks for stopping by and sharing your views @luckyali.writes
appreciate it
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hmmm...
how is it possible to invest 1$ in BTC... ???
you have to do it in CEX... and accumulate it in CEX and then wait till you have enough BTC that you can withdraw it ...but CEX will eat away your investment with the fees...
is it possible to buy just 1$ BTC through P2p or DEX... not sure...
it has to be through CEX I guess...
So BTC 1$ DCA is impractical... sure bigger amounts you can do, but small investors its waste if they do DCA via CEX coz BTC withdrawal fees damn costly...
and now no one trusts keeping funds in CEX na??
Oh yeah... DCA in hive everyone is unintendly doing...as long as we keeping writing and curating or get passive income with other curating with your delegated HP...
I used to break my head always on why CEX is chargng extorbitant fees on BTC wthdrawals earlier and it was difficult to convince others to buy BTC if you take about the withdrawal fees...
at one point all get interested in BTC when bull market, I been through that point feels like a crypto expert and all...
only later you realise Oh my God my Luna-terra recomendation, was bad and then celsius wallet recommending would have lost me credibility...
ha... anyway
Hi @mintymile I used the $1 analogy to show the analysis of the strategy.
As for buying for $1 I believe it should be doable on one of the dex exchanges and perhaps with wrapped BTC the fee can be low.
Alternatively one could check lightening wallet swaps though need to check on these.