Does dollar cost averaging strategy really work or is it just another way to lose money pretending to know what you are doing?

10 000 question challengeCategory: Profits (trading, ICO, mining)Does dollar cost averaging strategy really work or is it just another way to lose money pretending to know what you are doing?
HowToToken Team Staff asked 7 months ago
1 Answers
HowToToken Team Staff answered 7 months ago

Here is a very interesting reddit post by a user of forum u/werd22190. He started to buy Eth weekly not a long time ago, went through peaks and experienced a fall from 1300+ to 400. What made his portfolio still bringing positive returns now is DCA!

“I started an experiment (to prove DCA to myself) at the beginning of the year: deposit $50 into GDAX every week and buy ETH as soon as it arrived, regardless of the price.

A new $50 transfer was initiated as soon as the last one arrived. Bank Transfers took 6-8 days. I avoided all of Coinbase’s fees this way to get the most ETH per $.

Edit: a lot of people are calling out Lump Sum being better than DCA, which is true. However, I don’t have thousands of dollars sitting around. This is money I’ve budgeted from every paycheck to put into crypto.”

A real-life example of Dollar Cost Averaging (DCA), or "How I’m in the green even after buying at $1300" from ethtrader