Effectiveness of DCA from ATH

We are all used to the terms “Keep calm and just DCA” but how effective is DCA?

If you are like me and timed the market just to buy at ATH, then this analysis is for you. I have compared the top 15 crypto coins (at the time of ATH ) omitting the stable coins to see how well they have performed if you have DCA’ed from ATH. Some of these coins have exited top 15 and new ones have entered.

DCA amount is 100 $ every month from October 9th (1 month before the ATH) for a total of 24 months. Total amount invested would be 2400 $.

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https://preview.redd.it/ugz9keu7b6tb1.jpg?1800&format=pjpg&auto=webp&s=758efa085716ba9ee1d17b463b784c9d25c577f7

Coins which have infinite supply have been marked as inflationary/deflationary considering last one year.

1. Most coins have failed the DCA test.
   Surprisingly ,Ethereum has never turned green even once. Please note that DCA was done on 9th of every month.
2. LUNC having only 60% losses is a coincidence as the DCA was done just at the extreme point of the crash And it has remained more or less stable for the following 15 months.
3. BTC and XRP are the only coins which are in green.
4. Coins with limited supply have not fared better/worse than coins with infinite supply.

Conclusion : Disciplined DCA only works if the coin that has proper tokenomics / use cases. DCA’ing into a random coin because you are attached to coin or you believe in founders may lead to failures.

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