๐Ÿ”ฅ Dollar Cost Averaging with Bitcoin - Episode #1

in HODL โ€ข 3 months ago

Hello!

A couple of days ago I was talking with @empoderat which is an altcoin maximalist about the idea of buying Bitcoin in slow quantities for a long period of time. Even he is an alt-maxi he agrees that this is a winning strategy that will give us some profit if Bitcoin follows their path.

You can read his thoughts HERE.

The most fun part of this challenge is that we started the day that Bitcoin makean All Time High, this is probably the worst day to start, but with this strategy we don't care about the Bitcoin price as we will be making small buys every week.

The plan is to make between 100$-200$ purchases every weekend and keep stacking sats for the long term. This sats are not going to be spent, I am making a full commit on this. And it will be stored forever in the blockchain. ๐Ÿ˜œ

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Source


1st Purchase - 20th of November.

I am planing to move the funds to the Celcius wallet to earn an interesting 4% APY for hodling the BTC there. I had some issues verifying my account that I think will be solved in the following days.

Until then I am hodling the BTC in the crypto.com wallet. Here the proof:

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When is the best time to start DCA Bitcoin?

Well, the theory says that if an asset is appreciating in value over time the best time to buy it is NOW!

And the reason is quite simple, if the asset is rising in price long term waiting is not a good strategy. You are fighting against the odds.

You are not able to know the price of Bitcoin in the future, but if you believe in the core fundamentals of the asset you can conclude that the earlier you are in, the better.

In addition, spreading the purchases over time gives you a massive opportunity to buy at a great price. If you don't believe me, there is a chart made by @chartsbtc that shows it perfectly.

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  • 2017: 4,283 $
  • 2018: 7,161 $
  • 2019: 7,378 $
  • 2020: 9,172 $

Take a look at the line starting to buy Bitcoin at the 2018 TOP. Look how cheap looks now that average price of 7,161 $.

I am really excited about this challenge! And I like that @empoderat is also on board!

Enjoy! ๐Ÿ˜Š


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I know this I the right thing to do but I am too lazy to stand by it ! How should I make myself stick to it ! ๐Ÿ˜†

You can set on crypto.com and other apps a recurrent purchase every week!
It is super flexible, you can change the rule to whatever you like.

You have NO EXCUSES! Join the party! ๐Ÿ˜‹

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There was sometime a narrative according to which during weekends usually the price is higher than week days, check that out and you might get more from the same price if you don't buy during weekends.

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Prices are supposed to be more stable during the weekends. In the long run it shouldn't make much of difference.

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Thanks for the advice, I am not sure if this will make a significant difference in the long run!

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It will take a great discipline and strenghth of character, patience and willingness to experience a lot of disappointing losses and unpleasant suprises, but this looks a like a winning strategy, at least for an average investor.

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I also think the same Drax!

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