I had $1000 to invest in bitcoin and had never invested in anything before. I knew from some class I had actually attended for once that I should not make one buy worth $1000. That the best strategy would be to make more than one purchase.
I googled buying strategies and learned of Dollar Cost Averaging. This is where you make more than one purchase over time.
So with that in mind I decided to make $20 purchases every week until the $1000 was gone. And that was my mistake. I did not realize how fast that bitcoin can move in price. I made my first purchase at $4200. After two weeks the price went up to $6000. Then it went up again. Then again. It is now over $16,000.
Yes the price could’ve dropped just as fast but bitcoin always seems to rebound. To make matters worse my wife said to just make one buy with the entire $1000. She also now knows how much money I missed out on. She won’t let me live that down.
What I should’ve done is make two purchases of $500 each over a week’s time. Or four purchases worth $250 each over two weeks time. If you have a large amount of money available at one time this is a better approach.
My original idea was solid but didn’t work out. It was a learning experience for me, so learn from my mistake.