Tag Archive: DCA

  1. Dollar Cost Averaging (BTCDCA)


    Hi, I’m Kathleen. I’m 20 years old, new to the bitcoin world, and here to write on the current hot topics in bitcoin while I learn about it along the way. First up, Dollar Cost Averaging.

    Timing the market for buying bitcoin can not only be extremely difficult, but stressful. There will never be a perfect time, nor will you (most likely) have the finances to buy a whole bitcoin at once. This is where Dollar Cost Averaging Bitcoin (BTCDCA) comes into play, which averages the purchase price of your bitcoin over time by automatically buying bitcoin for you with the American dollar, and transferring it into bitcoin. I prefer using Swan Bitcoin, which does this all for you with ease. You won’t have the constant worry of ‘when should I buy more bitcoin?’ because it does it for you. They use the method of Dollar Cost Averaging by doing daily, weekly, or monthly withdrawals from your bank account, starting with as little at $10.

    Let’s talk numbers, though: “Buying $100 of bitcoin every week for one year starting one year ago would have turned $5,200 into $6,295, which adds up to a return of 18 percent. Investing $100 of bitcoin every week for three years starting three years ago would have turned $15,600 into $23,125, which is a return of 47 percent. And finally, if you had put $100 into bitcoin on a weekly basis for five years starting five years ago, your $26,000 would be worth $199,626 now, a total increase of 664 percent” (Hugli, Pascal. “Bitcoin News, Articles, Charts, and Guides.” Bitcoin Magazine, 6 Oct. 2020, I think the numbers speak for themselves, but another thing to put into consideration when weighing the options, is that an everyday savings account at the average bank or credit union has ridiculously small interest rates. At my last credit union, I got $0.09 cents a month. Obviously, this is all dependent on the total in the account, but in the end, I think we both know there is a huge difference in the pros and cons of having a savings in the average American bank and a savings in bitcoin.

    Numbers aren’t the only thing to consider when purchasing, though. You also have to consider the stress factor of purchasing. So, back to the Dollar Cost Averaging bit. When using this method, it will obviously take a little bit longer than normal to build up a good chunk of bitcoin, but bitcoin is becoming more and more popular by the day. It’s best to buy now, even just a little bit at a time – it could be $10 to $50 a week or $100 a month, whatever you can afford and/or are comfortable with – so when bitcoin becomes a more popular, everyday currency, and it will, you will have a savings under your belt. Because when bitcoin is ultimately more well-known and used on a normal basis by the everyday person, it will also be much more expensive. You’ll be comfortable knowing you bought it back when it was cheaper, and not later on, when everyone else wants a piece of it. If you go through Swan, you’ll be able to build that savings a heck of a lot easier, too.

    I personally learned about bitcoin, and using Swan to buy it in a cheaper, smarter way, through my Dad. I’m still learning about bitcoin, it’s a very complex world, but at the very least, through talks with my Dad, I know of the growing popularity of bitcoin and the importance of buying now, at least until I learn more and know what I’m investing in. That’s why I use Swan, it makes it super easy for me to create a savings for my future. I don’t have to think or stress about it; the money automatically withdraws from my account every month, and so I’m building a fallback for when it comes time for me to buy a house, a car, or even just to have an emergency savings.

    If you want to start Dollar Cost Averaging, use our link and start your plan today to get $10 of free bitcoin dropped into your account:!

    And don’t forget to protect it with a CypherWheel!

    Thanks again,

    Kathleen Bitcoin

    Twitter: @KathleenBitcoin

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