Is DCA the ultimate strategy for maximizing Bitcoin (BTC) profits?

With the many fluctuations and workings of the cryptocurrency market, investors need to identify and opt for an effective strategy to give themselves every chance of making a profit. From staking to one-offs to Dollar Cost Averaging or DCA, there are many options available to traders. For some analysts, more than a strategy, DCA is the best ally for bitcoin (BTC) hodlers. According to them, it’s a method that enables bitcoin holders to secure profits on the cryptocurrency market.

A profitable strategy, according to analyst Wicked

DCA or single amount: which strategy should you opt for? While this question may present a Cornelian dilemma for some investors, analysts are not hesitating to decide in favor of the former strategy. In a recent tweet, the analyst known by the pseudonym Wicked asserts that Dollar Cost Averaging is a successful strategy for bitcoin hodlers, despite the period in which they began investing.

Wicked shared with its subscribers a chart on which the weighted average purchase price of bitcoin was $31,233 on July 3, 2023. This is the cryptocurrency’s highest level since June 2022. The analyst says: “When the entire orange line crosses below the dotted white line, that’s when ALL investors who opted for the DCA in daily make profits.”

Just a reminder that every single pleb who has been dollar cost averaging #bitcoin is now in profit no matter when they first started DCA'ing. Every single one of them! pic.twitter.com/pnuIqdQznM

— Wicked (@w_s_bitcoin) July 3, 2023

An opinion shared by SaifeDean Ammous

The economist and author of the bestseller “The Bitcoin Standard” agreed with analyst Wicked that DCA is a profitable strategy for bitcoiners. He stated via a recent tweet, “Regular stacking is profitable for everyone, even when bitcoin is down 55% from its peak. An amazing testament to the power of bitcoin as a life-saving technology”.

Regular stacking is profitable for everyone even when bitcoin is down 55% from the top. An astonishing testament to bitcoin's power as a saving technology.

High time preference fiaters cope by fixating on the bitcoin drawdowns, but that's irrelevant noise for long-term savers https://t.co/rttCP0IJXV

— Saifedean Ammous (@saifedean) July 3, 2023

Deemed a successful strategy by these analysts, the DCA actually involves buying small amounts of digital assets at regular intervals, regardless of their costs. It protects investors from market volatility and maximizes their chances of obtaining an attractive purchase price.

According to analyst Wicked and SaifeDean Ammous, DCA is therefore the best investment strategy for holders of the flagship cryptocurrency. Bitcoin hodlers be warned.