Why I Buy Bitcoin Every Day: An Intro to Dollar Cost Averaging
I get it. Buying Bitcoin is scary. What if you buy right at the top and watch your investment plummet downward for days, weeks, months, years, forever? Hopefully, if you’re buying Bitcoin at any price it is because you believe in its long term value proposition as an inflation-resistant digital money that can preserve wealth into the future without loss so long as humanity maintains an electrical grid here on planet Earth. But still, even if you were the most skilled investor with the highest conviction, the market is just too unpredictable to time. Although there is merit to just buying in one lump sum, most average investors would be served well to slowly accrue a position into an asset of such high volatility over time by setting up an auto-purchase on a daily, weekly, bi-weekly, or even monthly timeline. You can do this with whichever timeline and value amount suits you. When you schedule an auto-purchase of an asset, you effectively average into your holding position over time without thinking. This means even if there is a top, you only purchased a small portion at that price and thus your losses would be less severe.
This all said, given Bitcoin’s track record of being currently 99.9% profitable for all purchasers of the past, this tactic gives you exposure to the long term upside while easing your tensions about taking a big loss early. This is what I do. This is what I recommend everyone do to get started. You can always add more later when the price dips to a level you’d be comfortable buying more at, but for now, let’s just be sure we’re getting off zero and get started putting a little of our money into the greatest savings technology of our lifetime.
Here are the two easiest ways to auto-buy Bitcoin:
Get a Free $10 when you Download Cash App
Get $10 if you buy $100 on Coinbase
