As Ethereum (ETH) begins to reverse its gains, initiated by the cryptocurrency market recovery earlier this week, data suggests that dollar-cost averaging (DCA) by investing $100 per week in 2023 would not have been a profitable strategy for the second-largest cryptocurrency so far.
Specifically, DCA is a method that includes spreading out investments by buying at intervals and in roughly equal cash amounts, regardless of the price. It is popular among newcomers as it tries to minimize the impact of volatility and psychology on the overall investment, as opposed to timing the market.
DCA-ing Ethereum
However, despite these advantages, DCA has its shortcomings, as it relies on the notion that prices will, ultimately, always rise, but when this is not the case, such a strategy cannot protect the investor from declining market prices, as is evident in the case of Ethereum.
Indeed, using this method on Ethereum in 2023, i.e., purchasing $100 worth of ETH each week since January 1, 2023, th
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