Since early 2019, I've been practicing dollar-cost averaging (DCA) with digital currencies. My current portfolio includes BTC, ETH, EOS, and HT, though I may adjust strategies based on market conditions. This journal documents my live investment journey while sharing practical insights.
Market Analysis: Bitcoin's Volatile Ride
Yesterday's prediction about Bitcoin potentially dipping below 8500 proved accurate when prices briefly touched 8480 before rebounding to 8600—where it consolidated throughout the day.
Key observations:
- The 8480 bottom showed reduced trading volume, indicating limited sell pressure
- My stop-loss orders remained untriggered during the volatility
- Market distance (not micromanaging positions) can be advantageous during extreme swings
- Network-wide liquidations totaled $94.1M in 24 hours, highlighting retail trader vulnerabilities
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Trading Strategy Validation
For those who placed limit buy orders near the bottom:
- Current positions are likely comfortable
- This zone remains a viable risk/reward opportunity with clear exit plans
- Critical next 48 hours will test whether bulls can sustain momentum
DCA Performance Breakdown
Bitcoin (BTC-USDT)
| Metric | Value |
|---|---|
| Total DCA periods | 108 |
| Average entry price | $7,975.47 |
| Current price | $8,641.50 |
| Total ROI | +8.351% |
| Annualized ROI | +65.321% |
Ethereum (ETH-USDT)
| Metric | Value |
|---|---|
| Total DCA periods | 282 |
| Average entry price | $176.08 |
| Current price | $165.33 |
| Total ROI | -6.104% |
| Annualized ROI | -16.645% |
EOS (EOS-USDT)
| Metric | Value |
|---|---|
| Total DCA periods | 277 |
| Average entry price | $3.5931 |
| Current price | $3.5649 |
| Total ROI | -0.785% |
| Annualized ROI | -2.185% |
Huobi Token (HT-USDT)
| Metric | Value |
|---|---|
| Total DCA periods | 131 |
| Average entry price | $3.2389 |
| Current price | $3.1232 |
| Total ROI | -3.573% |
| Annualized ROI | -17.558% |
Market Outlook
My original technical analysis remains valid—we're maintaining watchful observation of:
- Bitcoin's ability to hold above psychological support levels
- Decreasing sell pressure at key price floors
- Potential bullish continuation patterns
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Frequently Asked Questions
Q: Why continue DCA during market downturns?
A: Systematic investing smooths out volatility—lower prices mean acquiring more assets per dollar, improving long-term position averages.
Q: How often should I adjust my DCA strategy?
A: Review allocations quarterly or after 20%+ price movements, but avoid reactive changes to short-term fluctuations.
Q: What's the ideal DCA frequency for crypto?
A: Weekly or bi-weekly investments balance market exposure without over-optimizing timing. Daily intervals increase transaction costs.
Q: When should stop-losses be used in DCA?
A: Primarily for emergency capital protection—set thresholds below major support levels (15-20% below entry) to avoid being shaken out.
Q: How to track DCA performance effectively?
A: Use spreadsheets or portfolio trackers monitoring: cost basis, quantity accumulated, and separate ROI calculations per asset.