Hi all,
I am new to this sub but i am very familiar with the crypto world and have had made some small investments in the past. But i am thinking of setting up an auto deposit into BTC monthly, i am aware it will be a long term move and i will not pull should it go down, but would putting £100 a month into be a good move at this stage?
Thanks in advance
Posted by Unmonitored
2 Comments
If you genuinely mean long term and you can handle drawdowns without touching it, then yes, £100 a month into BTC is a reasonable move. Dollar-cost averaging is built for exactly this kind of situation because it reduces timing risk and takes some emotion out of a volatile asset.
The main thing is position size. Bitcoin can still add a lot of volatility even at small allocations, so it only makes sense if that £100 is money you can leave alone for years and not something you might need back in a bad month.
So I’d say the plan is fine, but treat it like a high-volatility long-term allocation, not a guaranteed wealth machine. Even more traditional frameworks now assume future Bitcoin returns are likely to be a lot lower than the last decade, which makes discipline and sizing more important than ever.
Dollar Cost Averaging is generally a sound investment strategy.
You’ll hit highs, lows and everything in between.