Originally I planned to publish a brief recap of dollar cost averaging in bitcoins and altcoins at the start of January, as it marked 6 months since I've been using this approach for investments in cryptocurrencies.
Time flies, and I forgot about this article, now, with cryptomarkets tanked with the start of 2018 I decided it still matters to come out with such article.
A brief background - I'm quite new to crypto investments, I bought my first Ethereum back in July 2017, see First Investment In Crypto Currencies - Bought 0.2 ETH for EUR 50,
Here is what I told seven months ago on this:
It was in the late evening of July 3d, 2017 when I finally successfully bought my first cryptocurrency - I paid EUR 50 and get for that - 0.2 ETH. ETH stands for ethereum. Wonder what the heck is that? Don't worry, me either.
Now, a lot has changed ever since, I've gone completely crazy with cryptos, buying and holding, day trading, cloud mining and even built my custom ethereum mining rig. Though one thing hasn't changed - dollar cost averaging buying cryptos once in a month - Dollar-Cost Averaging as part of Cryptocurrency Portfolio
Since the start of my investments in cryptocurrencies (July 2017) I've invested in bitcoin, ethereum, litcoin, ripple and starting with 2018 I've added two more coins - bitcoin cash and siacoin.
It's fun to observe how cryptos from my total investment portfolio (stocks, peer to peer lending, cash, funds) have risen from 2.3% in July 2017 up to 30% at the end of January 2018. Explosive growth has happened because of the crazy crypto market, reaching an all-time high in my portfolio for 2017 at around 320%.
I keep buying coins once in a month no matter what, no matter the price.
In 2017 I invested EUR 175 monthly to acquire coins, starting with 2018 I have increased this to EUR 250/mo
Overall cryptocurrency portfolio using dollar cost averaging
As you can see from the graph above it has been with a positive growth sign just after the first investment month (Good old days when bitcoin was about $2,000). During my early days, I've spent a lot of time analyzing coins patterns and so on. So back in 2017, I decided to add Ripple to my cryptocurrency holdings, see: Why I Rushed to Buy Ripple (XRP) Cryptocurrency at $0.19. Guess what? In December Ripple were traded at around $3 per coin, giving about 800% yield for my holdings.
Couple of bitcoin hard forks happened, at first bitcoin hash, then bitcoin gold
Volatile like a roller coaster - and no matter what dollar cost averaging once in a month. Right now I feel pretty immune against FUD (Fears, Uncertainty, Doubts). I still have my FOMO (fears of missing out) and that's why I've been experimenting with cloud mining contracts and even built my gpu mining rig.
I keep exploring new coins, and one of the latest addition to my long-term HODL portfolio is a siacoin, a coin I first discovered when learned to swing trade on Poloniex, latter dual mined on Claymore miner together with etherum and now just buying and holding.
- Is It Profitable Mining Siacoin (SC) in 2018?
- Mining Ethereum @ ~53 MH/s and Siacoin @ ~310 MH/s Earns me $5.53 Daily - And It's Time to take a Pause
- Lost Siacoins after Depositing to Poloniex.com Exchange (Probably because of Wallet Maintenance)
That said - dollar cost averaging is my best answer to crazy and volatile cryptocurrency investments.