How to regularly accumulate crypto assets (cryptocurrencies) (dollar cost average method)

Bitcoin, a leading cryptocurrency, is once again in the spotlight. It has been reviewed as a long-term investment target, partly because it has once exceeded its peak three years ago.

On the other hand, in the world of stocks and foreign exchange, an investment method called "dollar cost average method" has long been known as a low-risk high-return investment method. Can the dollar cost averaging method be applied to crypto assets?

Dollar Cost Average Method

There is a site where you can simulate how much assets were growing by using the dollar cost averaging method using crypto assets.

9-year simulation

Dollar Cost Average Method Simulation Screen

In this case, $10 per month has been used for bitcoin investments since 9 years ago, indicating how much assets have increased compared to DJI (Dow Jones Index) and gold. Gold and DJI were between 38% and 57%, while Bitcoin was 37,265%.

3-year simulation

Let's take a look at the toughest case, one that we've built up from December 2017 to the present.

Dollar Cost Average Method Simulation Screen 2

If I started investing every month and quit a year later, my assets were down to about half, but by continuing to invest every month, I have reached 90% of gold and DJI performance. Below you'll find links to sites that you can simulate, so you can change your investment frequency (daily, weekly, every two weeks, monthly) or change the investment period, so you can try it out for yourself. Please take a look if you like.

The dollar cost average method is a method that regularly continues at the same investment amount for investments with various fluctuation patterns, and is widely supported as a very clear and solid investment method. It may be said that crypto assets work effectively in the long run.

Japan's crypto-asset exchanges that can be automatically accumulated

Zaif also had a previous build-up, but has now discontinued it.


Posted by atommy