This week has seen all-time price highs for both Bitcoin & Ethereum. There are often drastic, sudden price changes in digital currency, and whenever the price starts to move there’s never any shortage of “FOMO” around whether it’s the right time to buy or not. As with any kind of investment, this can cause a lot of anxiety, uncertainty, or fear to participate at all.
One of the best strategies I think people can employ is dollar cost averaging, effectively lessening your exposure to price shifts by investing over a longer period of time. It’s pretty simple: think of a dollar amount you’re willing to spend on a regular cadence ($100 a week, for example).
Past performance
Obviously mileage varies depending on the asset, and past returns are not indicative of future ones—but let’s take a look back at how this strategy would have performed for the assets we currently support on Coinbase:
What if, 1 year ago, I invested $100 a week in…
Bitcoin
Ethereum
Litecoin
Historically, digital currencies have been quite volatile — and will likely remain this way as the ecosystem matures. This strategy is a great way for new participants to get involved without the anxiety of committing a significant amount of capital at a fixed price. Not to mention you also get the added benefit of adjusting this amount up or down as you go.
Over the coming months we’re planning new features that will continue to make it simpler for our users to grow, manage and track their digital currency portfolios.
The best time is NOW lol. Bitcoin is only going to go up with supply and demand, and Ethereum is mainly influenced by optimism. While ethereum has incredible potential, it's been hacked before and the computer is being led by a 23 year old kid. Bitcoin is the safest bet, ethereum is the gamble.
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Hi! I am a robot. I just upvoted you! I found similar content that readers might be interested in:
https://blog.coinbase.com/when-is-the-right-time-to-invest-in-digital-currency-8550f4024278
Great stuff and a different way of looking at things! Really puts investing in crypto into perspective.
Check out my technical analysis on my blog for a good reentry point for bitcoin, if you wish to deviate from the accumulative strategies.
Cheers!
Interesting post. Interesting to see I'm not the only one that is thinking about this. Buy and hold for the upcoming 2 to 5 years and the market will find it's way. We do need to look better at the insights of every coin. What team is behind it, is there any management. How strong is the product, is there any product at all? Does anyone know about: https://www.coincheckup.com An amazing crypto research site. They researched every single crypto out there. This is truly great.