Lump Sum Bitcoin Investors Makes More Profits than DCA

Investors who put all their capital at once into bitcoin win more than those who invest strategically over some time, according to a study conducted by Shitcoin Ninja.

The crypto researcher noted that Lump Sum – an act of investing everything available at once into bitcoin – works better than the Dollar Cost Strategy (DCA), which requires investors to invest in installments. He reached the said conclusion after conducting two parallel “trial” investments of $10,000 each.

The Lump Sum Investing (LSI), as explained, saw Shitcoin Ninja assuming to invest $10,000 in bitcoin at one go while the DCA strategy showed him putting the same amount into the cryptocurrency but across the span of nine years. The experiment resulted in a win for the lump sum, which beat DCA 67.9 percent of the time. The strategy made profits 60.8 percent of the time in recent datasets. Excerpts from the report:

“Dollar Cost Averaging is a form of smoothing that reduces the volatility associated with…