It Is Still Not Too Late to Buy BTC Despite the Price Boom
Bitcoin price jumped to $ 24,000, bypassing major barriers days before the end of 2020. Those who think it is expensive to buy bitcoin now might consider the dollar-cost averaging technique.
Last week, the leading cryptocurrency drew a very successful graph. It broke the $ 20,000 level that it had not been able to beat for a long time, and reached $ 23,000 within a few days. Finally, with the impact of Elon Musk‘s bitcoin comments on Twitter, the price surpassed $ 24,000.
The mainstream media has been full of bitcoin news for the past week. Some say these levels are still low, hoping that the price will jump even further. Others say even $ 24,000 is high enough and they are now late. Although everyone has different comments, crypto supporters are certain that the price will continue to rise in the near future.
At the time of writing, the leading coin is trading at $ 23,866, up 1.34% in 24 hours, according to CoinMarketCap data.
DCA Investment Technique for the Volatile Crypto Market
Bitcoin trading can be done in different ways. As a short-time trader, you can earn hundreds or thousands of dollars from such momentary price increases. Or you can be a “hodler” and keep your bitcoins for a long, despite whale movements and price drops.
Between these two, there is another type of investor who doesn’t have time to follow BTC / USD technical analysis because of their full-time jobs. These average investors can neither buy large amounts of Bitcoin nor spend time on the techniques of short-term price fluctuations. Here is another way to trade BTC in times of bullish and bearish cycles for such investors who are also risk-averse.
The dollar-cost average (DCA) is an easy and more effective technique to invest in volatile markets such as cryptocurrencies. The logic of the technique is briefly defined in this way. Instead of trading a large amount at once, an investor can divide that amount over time and make small but continuous transactions.
As shown in the chart, if an investor had invested 100 dollars per week in BTC for three years since 2017, they would have a portfolio worth $ 40,867 at the current Bitcoin value. The investment, which was 100 dollars a week, $ 15,700 in total, would have gained 160% in three years. All in all, if you are an investor who is afraid of taking huge risks, it’s not too late to invest even now.
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Disclaimer: All information provided in the content is for informational purposes only and should not perceive as an investment, financial, or trading advice. Any investment decision you make should be a personal choice based on financial knowledge, experience, and market research.