 What's going on YouTube? In today's video, we are going over probably the question that most of you guys are currently asking as we watch Bitcoin return back to its all-time high. Is now a good time to buy Bitcoin? The answer is simply is not going to be probably what you want to hear. But it's going to be the best answer in the long term, right? So I'm sure a lot of you in 2017 probably might have bought around this range, right? And we're finally back. You're either now finally in profits or you sold too early and you want to get back into it. You want to jump right back into Bitcoin, but you're not sure if now is the right time or maybe you're just brand new and you're looking to make your first investment in Bitcoin. Or maybe you already have Bitcoin, but you want to add more to your position. There could be a hundred different scenarios on why you're looking to add more Bitcoin to your portfolio. So we're going over what I believe is probably the best thing that you should do in this situation. And really in any situation when that when you're trying to ask yourself whether or not you should make an investment in Bitcoin at the time or any other long-term investment, right? So we're going to start with, you know, the first thing, should you or should you not buy Bitcoin right now? So I mean the answer is simply is not going to be probably what you want to hear, but it's going to be the best answer in the long term, right? So we've spoken about this before. I've told you guys, I've answered this in the questions when we do the Q&As on Instagram. I've made a video regarding this before when Bitcoin was at a way cheaper price as well. But let's talk about it. Dollar cost averaging guys. So should you buy Bitcoin? The answer is yes. Should you buy Bitcoin? Not the current price? The answer is also yes. Now should you put all of your money at one time? The answer is probably not. Let's talk about dollar cost averaging. So what is dollar cost averaging? Dollar cost averaging is an investment strategy in which an investor divides up the total amount to be invested across a periodic purchase of a target asset in an effort to reduce the impact of volatility on the overall purchase. So what does that mean guys? That means if you split up, let's say you want to invest $10,000 in Bitcoin. Now you could either just throw $10,000 in right now at this moment or you can split that investment across a 12 month period or a 10 month period, $1,000 a month. So that would be the safest way to invest such a large sum because you're averaging out your position. So now it no longer matters whether you're entering now or not because you're going to continuously better your position regardless of which way Bitcoin goes. So if you buy now at $19,000 and then the price drops to $10,000 let's say next month and you buy again, now your average entry is going to be about $14,500 versus just putting in $10,000 in at $19,000 and then it dropping down to $10,000. Now you're down. You're going to be down about 50% of your investment. So the idea here is instead of making one lump sum investment when you're buying Bitcoin, figure out what that number is that you want to buy and then split that up over a monthly period, over a weekly period, whatever you decide to do just split it up so that your entries aren't just in one entry. You want to average out your entry whether it goes up or down. You know what I mean? So if you buy at today at $19,000 and you buy again next week at $20,000 your average entry is $19,500. So you'll still be in profit but you're making the safer investment. So let's pros and cons to the strategy just like any other strategy of course. So to continue on what dollar cost averaging is, the purchases occur regardless of the asset's price and at regular intervals. And in effect, this strategy removes much of the detailed work of attempting to time the market in order to make purchases of equities at the best prices. Dollar cost averaging is also known as the constant dollar plan. I don't like that. Let me just take that off. No need for that nonsense in there, right? So understanding dollar cost averaging is a tool an investor can use to build the savings and to build savings and wealth over a long period. It's also a way for an investor to neutralize short-term volatility. So that's perfect for Bitcoin because Bitcoin is very, very volatile overall, right? Especially short-term. So in order to neutralize that what you want to do is spread out your entries, right? Although it's one of the more basic techniques, dollar cost averaging is still one of the best strategies for beginning investors looking to trade. So that's why this is what I recommend to beginner investors that are just trying to get their feet wet, you know, they're trying to understand how the Bitcoin and crypto space works overall. This is the best way to get your feet wet while also exposing yourself to Bitcoin itself and while you're still learning. So over the period of time when you're averaging out your entry, you're gonna at the same time be learning, which is great because you need to learn and you need to know what it is you're investing in. So let's jump into some examples, right? So this is a website called DCABTC.com. You guys can check this website out. What this does is DCA stands for dollar cost averaging, BTC stands for Bitcoin. So you can kind of go back in time and, you know, play out different scenarios. So for this particular scenario, we can pretend that we set up $100 purchases, right? Every two weeks for three years, starting three years ago, right? So if you went ahead and did that, this exact scenario, this is exactly what it would look like. So and it tells you here your final numbers, the total invested in three years would be $7,900. Your the value of your investment will currently be $11,830. So you would be up 49.75% overall, right? So you can you can watch it here exactly how that would have looked like, right? $100 and 292, 359, and it just continues continues up all the way up through all the ups and downs. It doesn't matter because you're averaging in the entire time. So the the most you would have been up at any point in time would have been $12,194 and what you'd be currently at right now is $11,830. So you see here how it works, right? And now if you do this compared to something to different assets that you can invest in over the same amount of time using the same strategy, buying the same amount, we can compare it to the Dow Jones and we're going to compare it to gold, right? And you're going to see that all of them go up, right? So even if you the second best performing one would be gold and you would have been at $10,743. So that's $1100 less made than Bitcoin and the Dow Jones you would be at $8,652. So that's way less. Now you're talking about $3,000 less than Bitcoin. So you see that Bitcoin is the number one asset for you to have invested in three years ago and continues to be today. Now the best way to make these investments is to dollar cost average in so that you have the best entry possible. Now, like I said, there's both pros and cons to dollar cost averaging, right? Here's an example on dollar cost averaging. So investing in Bitcoin with no dollar cost averaging example, right? And on January 1st, 2018, John decides to purchase $5,000 worth of Bitcoin. The Bitcoin price at the time was $13,800 per coin, which means that John now owned 0.362 Bitcoin, right? Now investing in Bitcoin using the dollar cost averaging example. On January 1st, 2018, Alice decides she wants to purchase $5,000 worth of Bitcoin, the same amount as John, right? However, instead of investing the entire amount today, she decides to purchase $500 every month for 10 months. 10 months later, Alice now owns 0.61 Bitcoin. That's almost twice as much as John, even though they both invested the same amount of money. So you see, she would have had over that 10 month period, 0.61 BTC. John, just because he didn't have patience, he just wanted to buy it all at once, has 0.362. So you will see that Alice now has almost double the amount of money that John has, because she used dollar cost averaging, and he just bought in one of them, son. So the pros and cons of dollar cost averaging, the pros is it reduces the risk of buying the tops. So if your dollar cost averaging, even if you buy the top today, when it does drop, you're going to keep buying, you know, when it drops on all those drops, which is going to average out your entry size. So over the long term, it's going to give you the best entry size, right? Another pro of dollar cost averaging, it doesn't require a big upfront investment. So you don't have to invest all that money now. And this is especially an important benefit if you don't feel comfortable with investing your savings into Bitcoin, and instead you want to take small chunks from your paycheck every month, right? So you don't have to commit a massive amount of capital from day one, which makes this a very, very great pro for dollar cost averaging. The next one here is it gives you time to understand Bitcoin. So this is for the beginners that have never invested in the space and that are new here. By spreading out your investments, you're going to be learning as you go along, you're going to be learning as you continue to invest. So this is a great way to continue to learn while still investing in it, you know, small amounts at a time. You get number four, you get opportunities to buy Bitcoin at steep discounts. Because of any drops, you will have an opportunity to be buying during those drops, right? So a great example is November 2018, when Bitcoin's price crashed, Bitcoin was trading for months in the $6,000 per coin range, and then suddenly it dropped to $3,500, right? So you would have been able to buy both at the $6,000 and at $3,500, you know, so needless to say, if you would have bought at any of those at that point, doing while you're a dollar cost averaging right now would be worth a lot of money, right? Number five, it reduces emotional stress. So, you know, when you're when you're putting a lot of money in, if you buy now at $19,000, that's it, then you're going to be stressed out with the price goes down to $18,000, $17,000, or any of anything like that, right? Especially when you invest a big amount up front. So dollar cost averaging is going to reduce that emotional stress and you'll be able to be a lot more chill about it and just kind of watch it and know that even if it does drop, you're going to be able to buy in again and average out that entry, right? So it's not it's not that bad. Now the cons of dollar cost averaging, it eliminates the possibility of buying exact bottoms. So, you know, that's one thing, you know, if you would have bought at $3,500, but you're all also dollar cost averaging, you know, $3,500 was also would have been the best entry price. But at the time, you don't know that. There's no way to know where that exact bottom is. So even though, yeah, if you would have bought at $3,500, that one lump sum, you would be you would have made, you know, a crazy amount of money. So at that point, that would have been the best time to just enter with all your money. But because we never know at the time at the moment, we only know once it already happens, right? So that's why dollar cost averaging over the long term is the safest and better option, right? It takes time to get desired exposure. So it's another thing if you want to put $10,000 in and you're doing $1,000 a month, you know, at first, you only have $1,000 exposure. So it's not much. So it's going to take at least about five months for you to get at least half that money. So that's another, you know, another con to it. And the last one is potentially lower performance in a strong bull market. So currently we're in a bull market. And if your dollar cost averaging, you're making profits regardless, but you're not making as much as if you just did one lump sum at, you know, when the price was a lot lower, right? So at the start of the bull market. So those are con just pros and cons to every strategy. So you just kind of got to weigh it out and decide what's best for you. If you're a beginner, my recommendation is to definitely use this strategy and dollar cost average, because look, you always got to look at history when you're investing in anything. In history, we did go up here, but then look at this drop off, right? So not saying that and there's no way to know whether or not Bitcoin is going to, you know, have that same drop off it did. I don't believe it will. There could definitely be a correction. I don't believe we'll have that correction down to 3000, you know. But if there is a correction and your dollar cost averaging, then you're going to still get the best price possible, right? If there isn't a correction, then you're still exposed to Bitcoin. So it's a kind of a win-win, right? So that's why my recommendation, if you're you don't know whether or not to invest in Bitcoin right now, is to go ahead and start to dollar cost average, figure out a budget for yourself monthly or weekly, however you want to split it up, and then just set that up. You can set those up like on Coinbase, on Gemini, where it does it weekly, it pulls the money right out of your account and you don't even have to do anything. So you could automate that process so that you don't see it and it just kind of happens, you know what I mean? Also so that you don't forget. So that's it guys. I use this strategy all the time. I've used it with Bitcoin. I've used it even in the stock market. I still use it to this day. Every Monday I have an automated, it automatically already pulls money out of both my account for the stock market and my account for Bitcoin. So I'm investing every single week in both stock markets and Bitcoin at the same time. And then I get that money and invest it and I dollar cost average my long-term positions. So that's what I recommend to you guys, you know, if you're not in a position or you want to add more to your position and you're not sure whether to wait or to jump in now. I say to just figure out that budget and then just split it into weekly or monthly payments, investments and that's going to be the safest route for you. Alright guys, that's pretty much it. I think I covered everything I wanted to touch on today. I've had this question by so many different people. The question of the day today is going to be what is a recommended strategy for you guys if you're looking to buy right now or if you have that question whether or not to buy right now. So just post the answer in the comments, make sure to hit that like because once we get to 20 likes and it triggers the giveaway, the giveaway of course is a three months membership to our trading room. And that's basically it guys. If you have any other questions, just drop it in the comments. Please guys, I appreciate you. Make sure to go ahead and subscribe to the channel. We're trying to hit that 2100 subscribers now. We're almost there. Hit that like, hit that notification bell so you know exactly when I drop videos. I drop a video five times a week, Monday through Friday with tutorials and market analysis and all sorts of fun stuff. So thank you guys so much. I appreciate you guys. If you took the time to watch this video, hopefully you guys learned and picked up some things out of here. Thanks guys. I will see you on the next one. As always, peace.