Up and down are part of market, DCA/HPUD is the art to beat it.
Up and down are part of market, DCA/HPUD is the art to beat it.
There is lot of discussion keep going whenever the market climb or whenever the market tanks. Interestingly a bull market causes a fear known as "FOMO" (fear of missing out) and on the other hand bear market causes panic selling and unfortunately both of them can be very serious dent on your investment.
Above is the chart of the BTC for last 7 days where BTC shows variance from 58341 to 44391 and might be it start looking scary to you.
But if you see the below table then you find things will not be scary if it is averaged for long period of time.
| Month | Price | Cost of .1 BTC | BTC purchased using $1000 |
|---|---|---|---|
| March 1 2020 | 8655 | 865.5 | 0.1155 |
| Apr 1 2020 | 6465 | 646.5 | 0.1546 |
| May 1 2020 | 8926 | 892.6 | 0.112 |
| June 1 2020 | 9667 | 966.7 | 0.1034 |
| July 1 2020 | 9282 | 928.2 | 0.1077 |
| August 1 2020 | 11726 | 1172.6 | 0.0852 |
| September1 2020 | 11988 | 1198.8 | 0.0834 |
| October 1 2020 | 10893 | 1089.3 | 0.0918 |
| November 1 2020 | 13822 | 1382.2 | 0.0723 |
| December 1 2020 | 19832 | 1983.2 | 0.0504 |
| January 1 2021 | 29458 | 2945.8 | 0.0339 |
| February 1 2021 | 34541 | 3454.1 | 0.0289 |
| Sum | - | 17525.5 | 1.0391 |
If you have .1 BTC at first of every month (I took max price of BTC that day, neglecting the fraction part) then you have today 1.2 BTC for $17525 . A nice Profit even you compared the dip happened.
On the other hand if you have purchase BTC equivalent to $1000 (table value are truncated to 4 decimals) then you will be holding 1.0391 BTC today for just $12000. Again look very nice profit and alternatively this approach in financial world is known as DCA (Dollar Cost Averaging.)
What is HPUD
HPUD stands for Hive Power up day that falls on first of every month. On this day we Hivians powerup the Hive increasing our stake of Hive unfazed by the price of Hive.
Currently @traciyork host the Global HPUD and @victoriabsb host the Hispanic HPUD and you can find the links below.
Link to Global Announcement post Link to Hispanic HPUD
So do not forget to powerup on March 1, 2021 on GMT times and be eligible for prizes too according to the announcement post.
I will like to see you guys there and may be you are eligible for delegation from me as I am one of the sponsor of Hispanic HPUD.
Please feel free to upvote ,comment and reblog.
Posted Using LeoFinance Beta
