By Shawn Langlois, MarketWatch
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.
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% .