Investing by using the Dollar cost Averaging technique is something I have been doing for around 18 months now and the hope is the longer I continue sticking to this it will unlock the wealth eventually. Chainlink above was if you invested from day 1 and have been investing a constant $100 per month ever since December 2017. This is nearly a 7 x ROI and this is when we are in a Bear Cycle and if the ATH is reached again this investment would be worth around $240K.
If we compare Bitcoin over the same time period as above it reveals that one would have only achieved roughly 3 x the ROI. This is over a 6 year period so it does give a decent time period highlighting that being early is obviously far more profitable. For instance if you had gone into bitcoin 3 years before this chart back in 2014 the $10 800 invested would be worth $234K.
The only problem with these 2 examples is the Chainlink is if you got involved from day one and unless you are aware of the project the chances of that happening are slim. Staking today would still be regarded as early when you look back in 5 years from now due to how few people are invested in crypto compared to the global population. This is why finding projects that you think are investable for what they offer is important and to slowly build a decent portfolio by using DCA method.
The idea of DCA by buying a certain amount each month continuously with the idea of increasing your investment value over time will work if you give it the time required. These days you can stake and earn APR rewards which compound increasing your total portfolio value.
The DCA site doesn't have all the crypto listed and I was hoping to calculate my COTI portfolio value on what I had purchased over the roughly 24 months I have been involved. I suspect I have roughly broken even with the portfolio value being around $5K currently with the prices down by over 90%. The hope is over the next 5 years this will highlight the being early part and the numbers will not be comparable to today's values. Just the ATH's returning would see the investment do a 15 x and more like what we would all like to see on our efforts. If I had started this 3 years earlier however this would be
similar to Chain Link with a good 4 or 5 x the ROI.
The crypto cycle depending on where you are in the cycle can give you a false reflection of what is happening and why you have to zoom out. Within 6 months my COTI investment could easily double or treble from where we are currently. There is no concern about the values currently due to where we are in the cycle and what is more important is the number of tokens and how many are being earned daily swelling the overall number. The real dollar values will only be revealed much later on.
