L’Épargne du Coin: investing in Bitcoin with peace of mind
To celebrate Bitcoin’s 12th anniversary, Le Journal du Coin is teaming up with StackinSat to launch a new service: L’Épargne du Coin! This platform allows you to position yourself on Bitcoin serenely, thanks to the planned investment.
L’Epargne du Coin was born from a conviction: Bitcoin is here to stay. Although its adoption as a means of payment is not yet assured, its function as a store of value is confirmed. Fears about Bitcoin Bank inflation of state currencies and the low yield of traditional financial investments make it a very interesting asset to diversify and protect one’s savings.
In this context, the creation of a Bitcoin Savings Plan makes sense! Discover our new platform, created in partnership with StackinSat.
L’Épargne du Coin: a programmed investment strategy
What is dollar cost averaging?
Dollar cost averaging, or programmed investment, is a strategy that consists of periodically investing a fixed sum of money in a financial asset. This strategy makes it possible to smooth its entry point. It is therefore particularly suited to volatile markets such as the cryptomoney market.
In the current context of strong price appreciation, there will be no shortage of opportunities to invest at the worst possible time (on a high market). Thus, the overly emotional investor may be subject to the famous FOMO: the fear of missing out. He may be tempted to invest all his capital dedicated to cryptomoney on a simple whim. And that can be very disappointing! For example, an investor who acquired all his Bitcoins in January 2018 will have had to wait almost three years to be profitable.
With dollar cost averaging, the same investor who invested a fraction of his capital each month, without worrying about price fluctuations, would have realised a much better capital gain. And, above all, without any headache!
If you want to invest part of your capital in Bitcoin, but have neither the soul of a trader nor the time to keep your eyes on the price, this strategy is for you!
Is this a profitable strategy for Bitcoin?
On Bitcoin, it is a particularly profitable strategy. For example, here’s what the Corner Savings simulator gives for an investment of 100
Thus, having started to invest periodically during the bear market of 2018, the realised capital gain would be 264%. By investing the same amount all at once on 1 January 2018, at the rate of $13,500, the capital gain would be 152%.
The DCA is therefore a profitable investment strategy in a long-term bull market. It allows the Fund to increase its exposure to this market on a regular basis, while limiting the risks associated with its volatility.