Bitcoin Investing: Dollar Cost Averaging vs Going All In

When investing in Bitcoin (BTC) there are various strategies that you can use. Two of the most common are Dollar Cost Averaging (DCA) and going all in. With DCA, you invest a set amount at regular intervals, while going all in sees everything you have to invest put into the market at once. There are advantages and disadvantages to each, so let's take a closer look these.

Going All In
Advantages

• You know the price that your entire investment will be made at

• If the price goes up quickly you get the full benefit of the gains made
• If Bitcoin forks or airdrops occur, you will likely receive a larger cryptocurrency dividend, as these are awarded in proportion to the quantity of BTC that you hold

Disadvantages

• If the price falls you will have missed an opportunity to get some Bitcoin for a cheaper price
• You may have to pass up on other investment opportunities that arise
• If an extended bear market follows, you could be holding a loss position for a considerable period of time

Dollar Cost Averaging
​Advantages

• You get more Bitcoin if the price falls during the period of time that you're putting money into the market
• You have money on hand during the investment period that could go towards other things if your circumstances change or new opportunities arise
• If you don't have a lump sum to invest, you can still grow your Bitcoin holdings using a percentage of your regular income

Disadvantages

• There is uncertainty about what the price of Bitcoin will be at each investment interval
• If the price rises rapidly, you will receive less Bitcoin than if you had invested everything up front
• You may receive lower cryptocurrency dividends from any Bitcoin forks or airdrops that occur prior to all of your investment payments being made

In the current market it is difficult to judge which investment strategy will give you the best result. My personal choice at the moment would be DCA as I think there could be a further downward correction in the not too distant future, however, long term I'm bullish. No matter which strategy you choose, it is important to only invest money that you can afford to lose. This is a volatile market where the price can rise and fall quickly, so you need to be prepared for anything.