I know most of you don’t want to hear this, but indefinite DCA only works if the assets you pick are growing in popularity and adoption. For you to hold onto an asset for more than 1 bear-bull cycle, that asset would need to be near-blue chip territory to justify the cumulative risk by prolonged exposure. And even then, financially you’re theoretically better off selling off during bull and buying again in bear, based on the previous two cycles, this includes ETH and BTC – ETH: https://preview.redd.it/ivik2y2wqj8b1.png?width=1514&format=png&auto=webp&s=b52787d66573fde2301357d48690319a361ea0c1 Per bull-bear cycle ETH has lost over 90% of its value making cycle’s low, lower than the previous cycle’s all time high. BTC: https://preview.redd.it/xbyoz068rj8b1.png?width=1304&format=png&auto=webp&s=671a292e915b1e5e5ec0931f8863bd5375270954 The same trend can be seen on BTC. This cycle’s low is lower than last cycle’s high. However, maximizing your gains per cycle requires some degree of timing the market, and it’s not exactly easy to determine when the new rally might end. But overall, BTC and ETH are historically guaranteed to reach higher highs, making them somewhat less risky to carry from one cycle to the next. Other coins are not so fortunate. XRP: https://preview.redd.it/bvo9flu3tj8b1.png?width=915&format=png&auto=webp&s=0c422dde237338e16fc9740fa2ac6d16c31278ed XRP hasn’t reached a new all time high since 2018 ICP has lost 99.85% of its value since https://preview.redd.it/qjpalahitj8b1.png?width=1153&format=png&auto=webp&s=70c9df96793bf0f241018180f987a734e80ff61c Not to mention the endless stream of shitcoins that get created during hype times. Naturally, none of this is financial advice just an observation that selling off / rebalancing every now and again could be more beneficial to your portfolio than holding on for dear life. That’s it 🙂 submitted by /u/CyberPunkMetalHead [link] [comments]
Cryptocurrency News & Discussion
I know most of you don’t want to hear this, but indefinite DCA only works if the assets you pick are growing in popularity and adoption.
For you to hold onto an asset for more than 1 bear-bull cycle, that asset would need to be near-blue chip territory to justify the cumulative risk by prolonged exposure.
And even then, financially you’re theoretically better off selling off during bull and buying again in bear, based on the previous two cycles, this includes ETH and BTC –
ETH:
Per bull-bear cycle ETH has lost over 90% of its value making cycle’s low, lower than the previous cycle’s all time high.
BTC:
The same trend can be seen on BTC. This cycle’s low is lower than last cycle’s high.
However, maximizing your gains per cycle requires some degree of timing the market, and it’s not exactly easy to determine when the new rally might end. But overall, BTC and ETH are historically guaranteed to reach higher highs, making them somewhat less risky to carry from one cycle to the next.
Other coins are not so fortunate.
XRP:
XRP hasn’t reached a new all time high since 2018
ICP has lost 99.85% of its value since
Not to mention the endless stream of shitcoins that get created during hype times.
Naturally, none of this is financial advice just an observation that selling off / rebalancing every now and again could be more beneficial to your portfolio than holding on for dear life.
That’s it 🙂
submitted by /u/CyberPunkMetalHead
[link] [comments]