In our last article, we discussed if you should continue DCAing during a market turndown. If you haven’t read the article yet, here’s the link for you
In today’s article, let’s explore the returns on few tokens in past few months/years. Let’s explore an example of dollar cost averaging in the crypto market might be an investor who decides to invest $500 per month in bitcoin. Rather than buying all $500 worth of bitcoin at once, the investor could divide their investment into four equal purchases of $125 each, made at weekly intervals. This would allow the investor to average out the price that they pay for their bitcoin and potentially reduce the impact of volatility.
Let us take an example of four tokens, i.e. Shiba Inu, Ethereum, Apix & Dogecoin, and analyse what would the return be if you would have invested in these tokens in the last cycle
If you would’ve invested $10 weekly from 1st Aug’20 to 11th June’22, the returns would look like:
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Shiba Inu ( +2780160% )
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Ethereum ( +42% )
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Apix ( +548319% )
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Dogecoin ( +534% )
Portfolio Returns are whooping +832000% OR +832K% ( Gas fee Not Included). This is the power of DCA
How to invest in DCA
Step 1: Build a portfolio by researching about different tokens or by selecting a set of tokens. Example: Invest in just ETH or invest in set of tokens like ETH, BTC, MATIC, etc.
Step 2: Choose the amount you wish to invest and choose the interval (Daily, Weekly, Monthly, Quarterly, etc)
Step 3: Select a platform to start the DCA. One of the few project that will provide decentralised and secure DCA is DZap. You can choose to invest either manually by batch buying or automated DCA where DZAp does it all for you.
DZap will soon roll-out DCA feature. And this feature will be very useful for long term investors, retail investors or passive investors who wish to INVEST rather than TRADE. Follow DZap socials for more updates.