This project is a simple calculator that takes historical Bitcoin (BTC) data from the last 4 years and calculates how much BTC you would have accumulated if you dollar cost averaged (DCA) $50 per week during this period.
Dollar cost averaging (DCA) is an investment strategy where you consistently invest a fixed amount of money into an asset over a set period, regardless of its price. In the context of Bitcoin, DCA means purchasing a certain dollar amount of BTC every week or month, helping to spread out your investment and potentially reduce the impact of market volatility.
DCA is particularly useful in highly volatile markets like cryptocurrency. It mitigates the risk of making a large investment at an unfavorable time by spreading purchases over a long period. DCA allows investors to average the cost of their Bitcoin holdings, buying more when prices are low and less when prices are high. This is a disciplined approach that helps reduce emotional trading and focuses on long-term gains.
This calculator takes historical BTC data from the last 4 years and calculates how much BTC you would have if you invested $50 each week (approximately $200 a month) using the DCA strategy. By simulating this over a 4-year period, you can get a clear picture of how DCA would have worked during that time frame.
- Historical data analysis: Pulls real BTC price data from the past 4 years.
- Automated DCA calculation: Computes how much BTC you would have accumulated by consistently investing $50 per week.
- Long-term strategy evaluation: Offers insight into the benefits of DCA over an extended period in a volatile market.
- Reduce risk: By buying in regularly, investors avoid trying to time the market, which can often lead to emotional decisions.
- Market volatility: BTC has seen massive price fluctuations. DCA takes advantage of this volatility by smoothing out the purchase price over time.
- Long-term investing: For those looking to hold Bitcoin for the long term, DCA can be an effective way to build up a sizable BTC holding without the stress of price swings.
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Clone this repository:
git clone https://github.com/your-username/dca-btc-calculator.git
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Its a little convaluded but change the variables in the user serction to adjust the code to produce the results you are after.
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- Run the console.