The markets look to have hit near bottom.
During the last bear market of 2019-20 I was dollar costing into bitcoin and Ethereum every month for $250 each.
DCA is a good strategy to increase your holdings and while in theory I should have kept buying regardless of the price when Bitcoin blew up to $60K it was a clear over price from where it had been a few weeks beforehand. The same with Ethereum when it hit $4K. Anything that goes up that fast is destined to come back down.
Dollar cost averaging is a way to invest in a particular security, such as a stock or crypto, by putting a fixed amount of money into that security at regular intervals, regardless of the price. This helps to reduce the impact of volatility on the investment, because if the price of the security goes down, you will be able to buy more shares, and if the price goes up, you will be able to buy fewer shares.
For example, let's say that you have $1000 that you want to invest in a stock. Instead of investing the entire amount all at once, you could use dollar cost averaging to invest $100 every month for 10 months. This means that if the stock price goes up, you will be able to buy fewer shares with your $100 investment, but if the stock price goes down, you will be able to buy more shares.
The advantage of dollar cost averaging is that it can help to reduce the impact of short-term market fluctuations on your investment. By investing at regular intervals, you will be able to average out the price of the security that you are investing in, which can help to smooth out the returns on your investment over time. This can be especially beneficial in times of market volatility, when prices can be very unpredictable.
In time it might not be a bad buying price but when the markets moon like they did last year it's an unsustainable bull run and I sold out my holdings for a nice profit.
Sell the top then regroup to go again.
The end goal is to own a full bitcoin but not at any cost. There is a time to buy and a time to sell in any market if your looking to make some money. HODL isn't a full strategy.
It's a good strategy when you are feeling the panic of the markets crashing and others are cutting their losses. Or even better, buying their panic and biding your time until the markets recover.
People have lost a lot of money so far these past few months. It's unfortunate but it's also opportunity for the people who can take it.
The ones who sold the top or kept some powder dry when others were going all in. It's a harsh reality but for somebody to win then others will have to lose.
Bitcoin is still the safest reserve in crypto and destined to reach 60K again at some stage. With the price sitting around 17K at the moment it's an easy 3x if you wait long enough.
Time to get buying and use up that useless fiat that's sitting there not earning me and dividends or profits while losing value all the time.
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