Among all the FIAT coins during 2016 Bitcoin was the highest return producing cryptocurrency.
Based upon this fact, quite a lot of people have started considering to buy Bitcoins.
However they always have this confusion as to what is a good time to buy the Bitcoins.
It is always uncertain whether Bitcoin will rise or fall because the valuation happens after the consolidation of approximately 1000 USD levels.
Consider Dollar Cost Averaging Strategy
Divide the total purchase amount into equal and small portions. buy with each portion consistently. the Purchase is can be made in the intervals of a week, a day, once in a quarter.
This way you will be less worried about your buying price. this method will ensure Peace of mind because Bitcoin is a highly volatile asset. this way you can also use a portion of your salary. you don’t have to invest large amounts which are generally not available.
The only drawback of the BPL method is that you will not be able to maximize your profit in bullish market. there have been many feet during which investment by this method has produced is higher profit then using one lump sum.
DCA advantage in Bitcoin for past 8 years: Low risk, High ROI
As per some analysis of results shared by Nadav Ivgi, when investors followed the DCA method, the system generated a ROI of 100% for them. Even people who joined in last 5years have seen high ROI’s. Analysis also reveals that people investing since August 2010 upto December 2016 were able to witness a staggering 58,685% ROI.
To conclude, DCA is suitable for long term investing in Bitcoin. Everybody Believe that Bitcoin will continue to rise since it is available in a very limited supply. however we cannot guarantee if right now is a good time to join or if the price is just right. DCA is a good way to hedge your interests.