What is DCA for Bitcoin
DCA know as Dollar Cost Averaging is a common long term investment approach.
It is a low mind share way to invest without emotion for the long term.
It is a common strategy to be used by the F.I.R.E community, Financial Independence, Retire Early.
Strategy for DCA
Regular payments into an investment vehicle over a long period of time (years).
For example, An automatic payment of $20 per week, into bitcoin, over the last 5 years.
`$20 * 52 * 5 = $5,200′ saved or invested PLUS any value your investment may have gained.
- Interest (bank deposit)
- Dividend (stocks, shares)
- Capital Gain (property, shares, bitcoin)
There are a few good sites out there that demonstrate the strategy much better than me.
Take a look at DCA BTC where you can change the values of the graph to see how you would have performed through history. You can even compare it to investments in other assets like gold of if you left it as cash.
Another one that is cryptocurrency specific is CostAvg.com which also shares how a lump sum would have compared.
Take a look at SwanBitcoin for an automated ACH (Currently USA Only) bank transfer into Bitcoin.
Weekly / monthly / or every paycheck.
Delivered to your personal wallet, or they will store it for you.
They have the lowest fees, and are very bitcoin centric.
If you use my referral link, you will receive $10 of Bitcoin thirty days after your first purchase clears on a Swan Bitcoin savings plan.
They are working on opening up their service to other countries.
“You don’t set out to build a wall.
You don’t say ‘I’m going to build the biggest, baddest, greatest wall that’s ever been built.’ You don’t start there.
You say, ‘I’m going to lay this brick as perfectly as a brick can be laid.’
You do that every single day. And soon you have a wall.”
Here Be Dragons
Take responsibility for yourself, everything you think, say, do. Greatest lesson ever learned.
Do research. Question everything. Decide where you are going, and set your sails.
“Hey, you created me! I didn't create some loser alter-ego to make myself feel better. Take some responsibility!”
― Chuck Palahniuk, Fight Club