Does Dollar Cost Averaging (DCA) Work?

We have a lot of discussion here on whether DCA works.

As we start to recover from the Crypto Winter of 2022 let's take a look using an example of DCA if you had been completely clueless about crypto and started buying at the exact all-time high of Bitcoin on November 10, 2021, at a price of $69,044.77.

DCA

If you had bought $10 a day (the price of a typical lunch in the US) from November 10, 2021 until today, March 9, 2023, here are the stats:

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1. You would have spent a total of $4,850.
   
2. You would now own 0.18767 BTC with a value of $4,070.
   
3. Your total profit-loss would be -15.99% with fiat loss of -$775 USD.

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Lump Sum

If you had just FOMO'ed $4,850 on November 10,2021, here are the stats:

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1. You would have spent a total of $4,850.
2. You would now own 0.07223 BTC with a value of $1,570.
3. Your total profit-loss would be -67.66% with a fiat value of -$3,280 USD.

Conclusion

As you can see DCA works. It particularly works with Bitcoin.

Not only that, but with a PNL of -15.99%, your ROI on just DCAing Bitcoin is better than most people who started investing in various Alts and moonshots in 2021 who are down -90%+. You did all this with absolutely no stress, no constant chart watching, and no worries of VC rug pulls, bridge hacks, bad tokenomics, changing narratives, or other risks associated with investing in the flavor of the month Alt coins.