Bitcoin, Buying on dips yielded higher returns than systematic investment

An analysis has shown that among Bitcoin investment strategies, the Dollar-Cost Averaging (DCA), which is commonly used, underperformed compared to the Accumulator strategy, which focuses on buying during market downturns.

According to CoinDesk, Orbit Markets, which provides liquidity in the cryptocurrency options market, announced their test results after 2023, stating that the Accumulator strategy recorded a higher return compared to DCA. The Accumulator method involves making small purchases of assets regularly, but forces an increase in purchase volume when prices fall below a certain level. On the other hand, DCA is a strategy of buying at regular intervals with a fixed amount regardless of market conditions.

Orbit Markets explained, "The Accumulator strategy yielded 10% higher returns compared to DCA over a 3-month period, and when extended to 6 months and 12 months, the performance differences were 13% and 26%, respectively."

This analysis suggests that a price-sensitive buying strategy could be more effective in a cryptocurrency environment where market downturns are frequent. However, since the Accumulator strategy requires forced buying, risk management should be conducted simultaneously.