Stress-free, low-risk Bitcoin investments – Bitcoin news in focus

Bitcoin prices and a number of other digital assets have appreciated significantly in value over the past decade. Some people made millions and even billions by throwing away everything they had in the first days of cryptocurrency pricing. However, there is another investment method called dollar cost averaging, or DCA, a scheme that is considered far less risky and can still produce decent profits for a cryptocurrency investor in the long run.

Since Bitcoin jumped the all-time high (ATH) in crypto assets in 2017, the digital currency has continued to appreciate in value after crossing the $ 20,000 zone. Then Bitcoin (BTC) tapped a new ATH ten days ago after the crypto asset jumped above the USD 42,000 area. Additionally, a number of alternative digital assets are approaching their 2017 ATHs, and some newer coins like Polkadot and Chainlink also hit price highs.

Now there are many people who got to invest in Bitcoin, Ethereum, Bitcoin cash and many other coins early on and this has brought these risk takers significant profits. But there is another investment method that people have used for a very long time called the Dollar Cost Average, or DCA.

The Most Important #bitcoin Advice You Will Ever Get.

– Document Bitcoin 📄 (@DocumentBitcoin) January 14, 2021

Essentially, the DCA purchase method consists of buying a set amount of cryptocurrency at regular intervals. This contrast is very different from throwing away all your money at once and waiting for profits. An example of buying a DCA would be buying $ 10 worth of Bitcoin per week for a period of three years or more.

Buying in this way is considered to be less emotionally stressful and also far less risky. The planned purchase intervals take place at this point in time, regardless of the cost of Bitcoin (BTC) or other cryptocurrencies. Then, if you aggregate the number of purchases per week and the standard price from the purchases over the three year period, the investment cost is measured as the mean average.

In addition, depending on the market performance of the crypto asset, a DCA investor can work much slower and less risky for themselves.

There is also a website that can help you estimate the interval of purchases over time and the average average over time. The web portal has a calculator to help you calculate your DCA metrics over time and if you’ve used the DCA scheme, you can check the returns on your current BTC investment.

Here is a great example of buying DCA over time, investing $ 1 a week in BTC over the past nine years. states that buying $ 1 BTC every week for nine years since January 2012, starting nine years ago at today’s exchange rates, would have turned from $ 470 to $ 289,295. That’s a whopping 61.452% increase in value over a nine-year period.

Dollar Cost Average Of Crypto Profit: Low Risk Bitcoin Investments With No StressThis graph shows a DCA Bitcoin investment for a period of three years with a purchase of $ 10 per week.

Now, if the person had started three years ago and invested USD 10 per week in BTC every week for the past three years, it would have seen a 361% increase. This method of buying DCA would have turned $ 1,570 into $ 7,249 in three years. Of course, the amount of time you start investing makes a difference to both DCA and giving up all funds at once.

Timing is the key and sometimes the earlier doesn’t make a difference because of the fluctuations in the price of Bitcoin. A good example of this is when someone invested a large sum in BTC on March 12, 2020, at a low of $ 3,800 per unit. Using today’s BTC exchange rate shows that the investments would produce a whopping 821% over time through January 17, 2021.

Dollar Cost Average Of Crypto Profit: Low Risk Bitcoin Investments With No Stress

The dollar cost average is still a lot less stressful as a person can invest without putting a lot of emotional energy into playing the lows and highs like the flat investment mentioned above. DCA investors don’t need to spend a lot of time and effort studying market charts, keeping an eye on crypto-related news, and keeping an eye on the heavyweights of the industry. The funds are simply invested without many time-consuming activities and the investment can be calculated over long periods of time without much worry.

The crypto investor who calculates using a DCA approach does not care that the market is unpredictable and the stress that is relieved by trying to rule the crypto markets is insurmountable. Throwing it all away and trading cryptocurrencies successfully takes time and research, things that some people just don’t have the time to apply.

A DCA investor understands that the price of Bitcoin changes very often and it can be difficult to hit highs and lows. However, long-term perspectives, logarithmic growth curves and an overall increase in interest show that holding digital assets for a long period of time has been an extremely profitable form of investment.

What do you think of dollar cost average? Do you use this investment method or do you trade highs and lows on a daily basis? Let us know what you think in the comments below.

Tags in this story

$ 1 Weekly Investment, $ 10 Weekly Investment, Average Purchase Price, Bitcoin, Bitcoin (BTC), BTC, Crypto Asset Investing, Cryptocurrency, DCA, DCA Average,, Dollar-Cost Averaging,, Recurring Investment , Research, trade

Photo credit: Shutterstock, Pixabay, Wiki Commons,, Twitter,,

Disclaimer of liability: This article is for informational purposes only. It is not a direct offer or solicitation of an offer to buy or sell, or a recommendation or endorsement for any product, service, or company. does not provide investment, tax, legal, or accounting advice. Neither the company nor the author are directly or indirectly responsible for any damage or loss caused or allegedly caused by or in connection with the use of or reliance on any content, goods or services mentioned in this article.

Comments are closed.