The best time to invest in Bitcoin – the DCA Method

Many people find it difficult to determine when is a good time to invest in Bitcoin. We are often asked, “Is it a good time to invest in Bitcoin?“. Unfortunately, we don’t know the answer either. Although you can estimate whether the Bitcoin price is going up or down, you NEVER know for sure. There are simply too many factors influencing the Bitcoin value.

People or companies who tell you that they know for sure what the price is doing, are lying. All cryptocurrency traders place their trades based on opportunities, history and chances. For example, this could be based on a pattern that may repeat itself, or based on rumours, events, or messages. They expect the price to rise or fall and make an estimation of the chance, but they never know for sure.

Since we can’t tell you exactly when it is the right time to invest in Bitcoin, we would like to introduce you to a common investment method. Virtually every investor who uses this method is in the plus in the long run. Even when they invested at the top of the bull market in 2017.

This is not investment advice and may only be used for information purposes.

Investing in Bitcoin using the Dollar Cost Averaging method

The method used to invest in Bitcoin is called the Dollar Cost Averaging method. This method is also used for traditional stocks and commodities. What the method boils down to is that you buy a certain amount of Bitcoin monthly, biweekly, or weekly (just what you want) on the same day. So, for example, you are going to buy $100 of Bitcoin every 6th of the month. You don’t look at the price or what happened to the coin. You are not watching anything.

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This method is so effective that if you started during the all-time high on December 17, 2017 and invested $100 per month you would be 29.27% in the plus. Keep in mind that this really would be the worst time to get in. By continuing to invest monthly, you are buying Bitcoin at the price you were buying at that time. Of course, this method can also be used for other cryptocurrencies / assets.

Calculate the Dollar Cost Averaging yourself

On the dcaBTC website, you can calculate what you would have earned if you invested a certain amount of money in Bitcoin. You can choose the amount, how often you want to invest each month, and for how long. Of course, you can only look into the past.

What are the benefits of Dollar Cost Averaging?

There are several advantages to using this method. Of course, for most people, it is all about making a return, but there is more.

Reduced risk of buying during an all-time high

Do you have the talent to always buy crypto at the highest point? That chance is greatly reduced by applying Dollar Cost Averaging. Because you buy periodically, the price can rarely always be at the highest point.

No major investment required

Investors often find Bitcoin too expensive and a too large investment. By applying Dollar Cost Averaging, you don’t have to make a large investment all at once. You can set your monthly fee and adjust it during the process. Of course, you could earn more with a higher amount, in theory.

No stress by keeping an eye on prices

You buy on the same day every month and you don’t have to keep an eye on the prices anymore. This reduces emotional stress and also ensures that you do not act out of emotion. Often when you act out of emotion you make the wrong decisions that can cost you dearly later on.