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Bitcoin vs Ethereum Dollar-Cost Averaging — How Profitable Is It?
With over 106 million BTC owners worldwide, countless examples of investing and trading strategies exist.
Scalping, arbitrage, leverage, high-frequency, swing trading, buying-the-dip, and lump-sum investing are notable ones.
However, there’s one that garners lots of attention and has been fairly successful for most people following this approach:
Dollar-cost averaging (DCA).
Today, we’ll analyse a DCA strategy for Bitcoin and compare it to Ethereum, seeing how the two have performed between January 2018 and December 2024, inclusive.
What is DCA, and why is it appealing to many?
This involves investing the same amount of money at frequent intervals (e.g., $200/month) over a given period, irrespective of an asset’s price.
It is preferred by people seeking a simplified approach to buying various assets. This can be useful for beginners or risk-averse investors who are jumping into a market without understanding technical analysis and macroeconomic trends.
