Dollar Cost Averaging – Best Way to Establish a Position Over Time

Hey everyone,

I’ve been buying Bitcoin everyday for a little over a year now and I’ve seen the results of steadily buying Bitcoin drastically eclipse the returns from my 401K and other traditional investments (my current asset allocation is ~53% stocks, 5% bonds + REITs, 27% Crypto + Stablecoins, 15% cash) so I wanted to share some of the results in case anyone else had been thinking about trying something like this.

I’ve done monthly DCA with the top Altcoins (ETH, XRP, BCH, LTC, EOS, ADA, XTZ, XLM, LINK) since around May of 2020 – these results have been much more mixed (from +19% to -26%). I don’t doubt that some would work if you stuck with them, but I’ve found the most success with Bitcoin.

High level results:

401k returns since 2016: +17% (investing in Vanguard mutual funds)

BTC returns from only DCA daily buys in 2019+2020 (as of today $14,000 price): +57%

Tracking these buys automatically and graphing the prices you buy at (if you buy at regular intervals) will give you a really good idea of when you should take advantage of a large buy. Example: When the price crashed in March I saw that the price had fallen below my cost basis (or breakeven price). That along with months of daily price data gave me the confidence to buy the dip (I am usually very skeptical of market timing, and you should be too). But identifying that opportunity and taking action was obviously very lucrative (as of today).

I think this being a halving year / post halving year (and the macro backdrop USA printing trillions in stimulus) have helped push the gains higher than they would have been otherwise, but I still think this is the most conservative way to get into Bitcoin and will continue the strategy for the foreseeable future.

How I set up automatic DCA + profit tracking with Google Sheets + Coinbase Pro API + Python + AWS


Results from DCA through the first year ($10,000 BTC price)


If you have questions / comments about the strategy, let me know I’d love to help out or improve my process 🙂

submitted by /u/Rhettre
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