Financial writer Wu Danru: Dollar-cost averaging into Bitcoin earns 70% return: I am not optimistic theoretically, but I am willing to experiment

Taiwanese popular financial writer Wu Danru, beloved by the middle-aged audience, recently showcased her investment results in cryptocurrency through regular fixed investments: 72%. She mentioned that although she doesn't believe in this "decentralized currency," she is willing to experiment a bit more with it.

Financial Writer Wu Danru Earns 70% by Dollar-Cost Averaging Bitcoin

On 1/12, Wu Danru stated, "Dollar-cost averaging is quite powerful. This is a sum of Bitcoin that I had forgotten about."

The attached image shows her asset screen on the Maicoin MAX App, where she achieved nearly 79% and 53% returns by regularly investing in BTC Bitcoin and ETH Ethereum, respectively.

About MAX's dollar-cost averaging feature, in fact, almost all cryptocurrency exchanges currently offer dollar-cost averaging functionality.

Wu Danru: Dollar-Cost Averaging is a Better Choice

Wu Danru mentioned, "In reality, whether it's ETFs or any investment, as long as it's not thrown into a scam group, dollar-cost averaging is generally a better choice. Even if it drops, it won't drop too much."

Doesn't Consider Herself Skilled in High-Frequency Trading

Wu Danru stated, "Those who like to rush in and out believe in their extraordinary skills. I don't have any special skills; I only have patience, so I adopt a certain long-term strategy."

Investments Should Evaluate Risks: Not Optimistic, but Willing to Experiment

Nevertheless, Wu Danru stated that she is not a believer in cryptocurrency. She said, "Before investing, estimate if you can afford to lose. I am not very optimistic about the future of these anarchic currencies from a theoretical perspective, but I still want to experiment for a longer period."

Dollar-Cost Averaging: What is Dollar-Cost Averaging (DCA)?

Dollar-Cost Averaging (DCA) is an investment strategy where investors regularly purchase a specific asset at fixed intervals (such as monthly or quarterly) with a set amount of money, instead of investing all funds at once. The main advantage of this method is that it can reduce the impact of market volatility on the investment portfolio and help investors avoid the risk of trying to predict the best entry point in the market.

How Dollar-Cost Averaging works:

1. Fixed amount investment: Regardless of market prices, investors purchase assets with the same amount in each investment period.
2. Time-diversified investment: Investments are spread out over multiple periods in the long term, rather than being completed in one go.
3. Market price fluctuations: When market prices are lower, the fixed amount can buy more asset units; conversely, when market prices are higher, it buys fewer.
4. Cost averaging effect: Over the long term, the average purchase cost may be lower than the market's average price.

This method is particularly suitable for long-term investors as it reduces the impact of short-term market fluctuations and is a simpler investment strategy for those who do not wish to spend too much time on market research. However, it does not guarantee profits and may not perform as well as lump-sum investing in rapidly rising markets.