So if you have been keeping up with @khaleelkazi TikTok, you must have noticed how often he talks about dollar cost averaging and how buying $10 worth of bitcoin everyday can make you a millionaire some day. Those people that started this when Bitcoin was worth below $10,000 can testify how rich they are right now, because we can see the price of bitcoin and how long bitcoin has come after all these years.
The reason Dollar Cost Avaraging is good especially when implementing it on a worthwhile project, is because you can build a tremendous amount of wealth with it when consistent. But if you are dollar cost averaging on a shitty project, then you are wasting your money, this is why you need to do a thorough research on what you are investing your money on.
Dollar cost averaging being the greatest investing weapon in the history of crypto is that, no matter how the market moves, no matter un progressive the market might seem if you are looking at it from a short time frame, you won’t see how far the market has come. If you started doing Dollar Cost Averaging 3 years ago on some reputable project for as long as a year or more, you should have made over 500% profit by now.
As long as a project is reputable and has utilities, something you should understand is that, the price you are currently seeing is 90% sure that you can never see it at that price again. If you look at all the altcoins that have had a big boom in price, check their previous price 2-3 years ago. Now imagine having done Dollar Cost Average on those coins for 3 years before the rise. The beauty of crypto is that, it’s still in the early stage, we have not gotten to the peak yet, the total market has an all time high of $3 Trillion. That’s not even up to what other digital investment sectors trade in a day.
This means that, we are so early that the probability of seeing the altcoins price be the same in the next 2-3 years is very low. Except you are XRP(Ripple) who has not hit its previous all time high in over 3 years. I guess we should blame the SEC for this. So what determines your profit in the next 2-3 years is what you are able to buy at the current price using. If you can’t afford to buy the whole, you can dollar cost average your way into it, but if you can afford a whole, then dollar cost averaging yourself into having more quantities is the goal.
With dollar cost averaging, you don’t have to worry about price getting dipped or rising up. When the price is dipping, this means more quantity, you don’t have to worry about the price of your pay purchases, the goal is to get more quantities. When the price is getting high, your past purchases that you bought at lower prices are worth a lot now, making you feel good of yourself. So you see, it gives you complete rest of mind and saves you a lot of energy and strength of getting worried about the dip. The best part is dollar costing on a project where you can stake and earn rewards, there by giving you the opportunity to have a lot more coins or token. I guess this has show how Dollar Cost Averaging should be considered one of the greatest weapon to use while investing in crypto.