For those that FOMO rather than DCA

I'd like to try and convince you to hop over to the DCA and rebalance mindset.

One of my work colleagues insisted that a lump sum into the market was a better investment than DCA due to the current crypto prices after the big market fall. I suggested he come up with a market investment baseline and I would DCA that over a 30 day period versus his lump sum buy in. We settled on a round number of $1000

We chose the month of the march due to the state of the global economy and our national economy at the time (Aus)

Both weren't doing particularly well and usually just before April there is somewhat of a slump as we wait for interest hikes to be announced.

The rules were fairly straight forward:

I would be forced to invest $100 every 3 days regardless of SotM (state of the market).

He could pick any day during that month and Lump sum in as long as it was $1000.

We decided in the spirit of fairness to only invest in the top 10 cryptocurrencies sorted by USD market volume.

He tracked the market for around 9 days before deciding on his investment point, I alternatively set up my recurring buy order.

At the end of the month the lump sum portfolio is currently worth 991 USD - a loss of approximately 0.9% in what is arguably one of the better months to be doing so.

The DCA portfolio is currently worth 1034 USD - a gain of approximately 3.29%.

A positional difference between identical investment portfolios of 4.19% over the course of 30 days.

I had a pretty firm belief that DCA would provide better results against market volatility but also considered that if the market had done well, the lump sum may have done slightly better.

But for context, the best interest account here for us (with no strings attached or fine print) is 4.6% PA

Even at what is arguably an awkward time for the crypto market we made a 4.19% gain in 30 days as opposed to 4.6% after 365 days.

I still see quite a lot of users here moonshotting, praying for 10x or just FOMOing into an asset, The reality is, fairly great gains in the realm of 30-40% per anum can be achieved even with only small fluctuations in the market price.

Of course disclaimer: NFA and DYOR.

Edit: formatting.