Bitcoin DCA Strategy ComparisonI was thinking about making a post on DCA. For the post, I will use these variables.
- Strategy 1 (Buying Every Month)
Amount to DCA: $100 per Month
When to Buy: 1st of Every Month
Duration: 1st Jan 2015 to 1st April 2022
- Strategy 2 (Buying on Monthly Red Candles)
Amount to DCA: $200 per Buying
When to Buy: Red Monthly Candle
Duration: 1st Jan 2015 to 1st April 2022
I made a Python code using CoinGecko Historical Data to get the information for Strategy 1.
For Strategy 2, I made a list of dates which had red candle, everything else was same.
Results:- Strategy 1:
No. of Buyings: 88
Amount Invested: 88x100 = $8800
Amount of BTC Own via Strategy 1: 8.079
BTCCost per BTC: 8800/8.079 = 1089.24
Current Profit: 8.079 * 43000 - 8800: $338,597
- Strategy 2:
No. of Buyings: 39
Amount Invested: 39*200 = $7800
Amount of BTC Own via Strategy 2: 6.268
BTCCost per BTC: 7800/6.268 = 1244.41
Current Profit: 6.268 * 43000 - 7800: $261,724
Strategy 1, i.e. buying on the 1st of every month is the clear winner.