Based on hard data, I wanted to find out what the best days are to buy Bitcoin when Dollar Cost Averaging. For this analysis, I have gathered historical Bitcoin prices from 1st January 2012 to 31st December 2023.
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Dollar Cost Averaging — A Brief Introduction
If you are not a professional trader and want to accumulate Bitcoin, one of the best ways is DCA (dollar cost averaging), meaning that you invest in Bitcoin with a fixed amount of money on a regular basis — for example on a certain day every month.
Here are the advantages of using DCA:
Less stress: Bitcoin price is volatile compared with other assets such as stocks. With Dollar Cost Averaging, you do not have to try to time the market. It’s very simple.
Saves time: Some traders spend large amounts of time analyzing Bitcoin charts and trends to find the best buying and selling opportunities. With DCA, you don’t have to do that.
Opens more opportunities: DCA ensures that you do not go all in at once and have money left to buy the dips when opportunities arise.
Trains you to have discipline and good investing habits: Setting some money aside and investing regularly helps you to reduce spending and stick to a…
