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 12 months ago
1 Answers
HowToToken Team Staff answered 12 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