Dollar-Cost Averaging (DCA) vs Buying the "Dip"
Hi all, I have been learning about Bitcoin for the past few months and am trying to figure out the best investing strategy for myself. As an experiment, I analyzed and compared two strategies, DCA and Buying the "Dip" and I have some interesting results that I wanted to share with you guys. Disclaimer: This is not financial advice but for educational purposes only. Period : Between April 2020 and April 2021. Strategies : DCA (weekly on Wednesday, bi-weekly on Wednesday, monthly on the 1st): Total $800/month Buying the "Dip:" I define the "dip" here as when the price of Bitcoin drops to a certain threshold after its most recent all-time high (ATH). For all the periods that I am not investing, I am simply accumulating my USD. I am assuming that I will be able to add to my fund $500 twice a month, on the 15th and 30th. My investment fund will be divided into three parts and it will be invested as follow. I will invest 1/3 of my fund when BTC dro...