Photo by Ewan Kennedy on Unsplash
When it comes to buying crypto we all know that we should be "buying the dips" but really does this always work out or even happen in a timely manner for it to pay off even more so during a bull run.
So this has had me thinking as I buy into bitcoin and other crypto projects is it worth buying on once a week or making small daily buys. The thought was never really around till the place called Shakepay had introduced recurring buys.
Dollar-cost averaging (DCA) is an investment strategy in which an investor divides up the total amount to be invested across periodic purchases of a target asset in an effort to reduce the impact of volatility on the overall purchase.
Source
7 Daily Buys
When I started this I was not sure if it would be worth it buying 1$ a day and that equal to only 7$ a week that was not going to really be enough to make a real assessment.
| Day | BTC Price | BTC Bought |
|---|---|---|
| Once | 66,423.11 | 0.00003011 |
| Two | 70,546.73 | 0.00002835 |
| Three | 72,886.29 | 0.00002744 |
| Four | 74,266.61 | 0.00002693 |
| Five | 68,941.74 | 0.00002901 |
| Six | 58,139.53 | 0.00003440 |
| Seven | 62,111.80 | 0.00003220 |
Over the 7 days you can see the price dipped quite a bit up 18k and back down 16k, This had allowed me to buy 0.00020844 BTC over the course of 7 days.
14 Dollar Buy
I decided that it would be best to buy the BTC on the 7th day to fully compare the final amount.
| Day | BTC Price | BTC Bought |
|---|---|---|
| 7 | 63,188.30 | 0.00022156 |
With day 7 buy being 0.00022156 BTC and the daily buy being 0.0020844 BTC the difference was 0.00001312 BTC with buying once a week, in this case, netting more BTC. If you notice the dip to 58k I would have netted even more BTC. So maybe the best is waiting for the dip?
I am going to keep doing this over the next few weeks to see what in the end after say 12 weeks nets more BTC.
- All prices are in Canadian dollars.
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Buy crypto in Canada with e-transfer Shake Pay