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June 4, 2020, 3:27 p.m. EDT

Risk-averse investors ‘cannot ignore’ this path to profits, analyst says

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By Shawn Langlois, MarketWatch


Getty Images
Bitcoin’s having quite a year.

Bitcoin enthusiasts generally aren’t known as conservative mom-and-pop type investors. One look at this chart and it’s pretty clear the kind of stomach it takes to play the game:

But popular bitcoin analyst PlanB suggests that the long-touted approach of dollar-cost averaging — investing with a specific sum of cash at regular intervals regardless of price fluctuations — can smooth out the gut-wrenching peaks and valleys and deliver a tidy profit in the process.

He told his 109,000 followers on Twitter /zigman2/quotes/203180645/composite TWTR +7.34% that his model has resulted in reliable profits historically and “could easily” net a 70% return going forward.

In other words, buy in, wait and sell out. That goes against the bitcoin mantra of “HODL,” but it also represents a perhaps less risky way to get in on the crypto action.

“It doesn’t really matter much because the (historical) odds are 9 to 1 that you earn a positive return,” PlanB said in response to someone questioning when to start the process.

Investing in those steady increments is easily accomplished on Jack Dorsey’s Square , which allows automatic purchases of bitcoin /zigman2/quotes/31322028/realtime BTCUSD -0.35% in repeating cycles.

According to Cointelegraph , a $10 weekly purchase of bitcoin over the past three years would have returned 65% — $1,570 would turn into $2,588 to easily outpace the stock market.

Meanwhile, bitcoin continues to enjoy a strong 2020, rallying some 35% compared with declines on the S&P 500 /zigman2/quotes/210599714/realtime SPX +0.78% and Dow Jones Industrial Average /zigman2/quotes/210598065/realtime DJIA +0.68%  .

/zigman2/quotes/203180645/composite
US : U.S.: NYSE
$ 35.41
+2.42 +7.34%
Volume: 109.65M
July 8, 2020 4:03p
P/E Ratio
21.97
Dividend Yield
N/A
Market Cap
$25.88 billion
Rev. per Employee
$776,112
loading...
/zigman2/quotes/31322028/realtime
US : CoinDesk
9,402.36
-32.61 -0.35%
Volume: 0.00
July 9, 2020 1:18a
loading...
/zigman2/quotes/210599714/realtime
US : S&P US
3,169.94
+24.62 +0.78%
Volume: 2.39B
July 8, 2020 4:58p
loading...
/zigman2/quotes/210598065/realtime
US : Dow Jones Global
26,067.28
+177.10 +0.68%
Volume: 337.30M
July 8, 2020 4:58p
loading...

Shawn Langlois is an editor and writer for MarketWatch in Los Angeles. Follow him on Twitter @slangwise.

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