What if you raised DCA $25 a week in Bitcoin back in 2017?

• Within an eight-year time frame, Bitcoin generated returns that were more than seven times higher than gold and exceeded eight times the returns of stocks.
• DCA (dollar cost averaging) is a great choice for beginners and experts, but not without its flaws.
• This is the preferred investment strategy of a majority of crypto investors, with 59% using it as their primary approach.

With the price of Bitcoin hovering around 93k, there is no shortage of discussions about its steadily rising value. So what if you hop on board in 2017 and DCA-ed (regularly invest a predetermined amount of money in a specific asset, regardless of the current market price) $25 per week?

Spoiler alert: you would have a lot of money now. In addition, in those 8 years, Bitcoin would surpass gold and stocks in ROI.

Let's break it down. Starting in 2017, if you DCA-ed $25 a week, you would now have about $10,450 invested. So, your investment would return about $16,946.00 in gold or about $15,358.23 in stocks.

However, for Bitcoin, it would be a whopping $133,689.39! That's 8 times more than stock returns and 7 times more compared to gold. Although this is a 'what if' scenario, it shows Bitcoin's huge growth over the years, and the potential for dollar cost averaging.

If you want to see for yourself and play around with different investment periods and levels, check out this chart here.

What is good for DCA?

The primary use of DCA is to reduce market volatility as investing a fixed amount at regular intervals helps reduce the impact of market fluctuations.

It is also newbie friendly because it simplifies investing, making it accessible even to those with no experience or extensive market knowledge. In addition, DCA eliminates the need for constant and obsessive market research if the market is doing well.

As such, it became a popular strategy, with last year's survey showing that a substantial 59% of crypto investors prioritize dollar cost averaging as their top investment strategy they have

Note however that DCA does not offer guarantees of any kind, and you may miss out on higher returns if the market rises consistently during your investment period. So, it is not for everyone.

That being said, if you decide to experiment with DCA in crypto, start by choosing the cryptocurrency you want to invest in. Next, establish your investment budget and the frequency of your donations. In addition, make sure you do a thorough assessment of your financial situation, as well as any required research.