What if I had put $99 a week into Bitcoin?
Using estimated historical Bitcoin price data. Results are approximations based on yearly prices.
Bitcoin Basics
What is Bitcoin?
Bitcoin is a decentralized digital currency created in 2009. It follows the ideas set out in a whitepaper by the mysterious Satoshi Nakamoto.
Why Bitcoin?
Bitcoin offers financial sovereignty, protection against inflation, and operates without the need for intermediaries like banks.
Bitcoin as Investment
Bitcoin has historically shown significant growth over long time periods, making it an attractive asset for long-term investors.
Global Adoption
Bitcoin is being adopted worldwide by individuals, companies, and even countries as a store of value and medium of exchange.
Why Dollar-Cost Averaging?
Regular Investments
With DCA, you invest a fixed amount at regular intervals, regardless of Bitcoin's price. This creates a disciplined approach to investing.
Reduces Market Timing Risk
By spreading purchases over time, you avoid the risk of investing all your money at a market peak. This helps manage Bitcoin's volatility.
Automatic Averaging
When prices are high, your fixed amount buys less Bitcoin. When prices are low, you buy more. This naturally lowers your average purchase price.
Emotional Discipline
DCA removes emotional decision-making from investing. You stick to your plan regardless of market sentiment, news cycles, or price fluctuations.
Getting Started with DCA
- Choose a reputable Bitcoin exchange that supports recurring purchases. Coinbase offers an easy way to set up automatic weekly or monthly Bitcoin purchases.
- Decide on your investment amount and frequency (weekly or monthly).
- Set up automatic purchases to maintain discipline.
- Consider secure storage options like hardware wallets for long-term holdings. Popular options include Ledger and Trezor hardware wallets.
- Set it and forget it. The power of DCA comes from consistency over time, not from constantly checking prices or making adjustments.