Wednesday, November 25, 2020

DCA in bull market?

I see a lot of questions lately concerning DCA, mainly some variation of this one: “My normal monthly contribution gets smaller and smaller the more Bitcoin rises, it feels like I’m only adding peanuts at this point, when should I stop my DCA?”

Well, you shouldn’t. Dollar cost averaging isn’t only for bear markets, it’s about ironing out your buys in general.

Now, it’s normal to feel anxious when things go parabolic. No one wants to buy the top of a hockey stick or catch falling knives. But that’s why we DCA. It works, you just have to keep doing it.

As we near ATH and have seen a 100% increase in a matter of months, a correction or pullback seems imminent. It may happen sooner or later, but that doesn’t matter. Very soon we’ll hit 20k, and from then on Bitcoin will be in price discovery.

Just take a minute to think about that..

BTC, in price discovery, for the first time in almost 4 years. It’s a YUUGE event two hand gesture

Still think your buys are too expensive? They may very well never be cheaper than this.

So, unless you have a specific end game/exit point, this is the way to do it and ~especially~ if we enter a real bull market. Best way to keep your emotions in check? Yep, you know what to do.

Protect your purchasing power, keep going DCA all the way, just remember to save a bit for those Christmas presents.

TLDR: Yes


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