Bitcoin DCA Simulation

Hey everyone and thanks for being packed Into the cryptiverse today we're going To talk about the DCA simulation tool on The into the cryptiverse website if you Guys like the content make sure you Subscribe to the channel give the video A thumbs up and again check out the sale On into the crypto various premium at Into the cryptoverse.com that sale is Going to end at the end of the month I Do want to tell you though that this DCA Tool I think it's important for everyone To use whether you are a premium Subscriber to into the cryptiverse or Not and so if you go to the website and You sign up for the free tier you will Get access to this tool because I think It's a really useful tool for everyone To have access to all right so if you Want access to this tool if I if I don't Cover an altcoin in this video you're Like man I really wish Ben to cover that All coin I really want to see how it Would panned out you can go you can go Do it assuming we have that asset on the Um on the drop down menu we don't have All of them we have a lot of them though So go check it out again it's it's free The the free tier is there for you to Check out and you can get access to it And we're going to just walk through Various scenarios see how they would Have performed okay Now the first thing I will say is that

We said we've been saying that you know In prehabbing years and in Bear Market Years if you want exposure to crypto Bitcoin oftentimes tends to be better Than most but not all all coins it's Hard to know which all coins will Outperform Bitcoin in the prehabbing Here in the bear Market year there's Always a few and I'm not trying to take Away from those all coins that have Outperformed there's always a few that Do always okay and I say that all the Time it's just a collective altcoin Market behaves historically in a fairly Predicted predictable way against Bitcoin during this phase of the market Cycle and so we said that if you want Exposure to crypto then Bitcoin is Likely going to outperform most altcoins And so a DCA strategy into Bitcoin tends To be worthwhile whereas a DCA strategy Into altcoins tends to not be as Worthwhile Now I've seen a lot of people on Twitter Or X right and and what they'll say is Well just you wait you know this is the The the you know the best argument that They have for the altcoin market is just You wait and to some degree I agree that Eventually all coins will turn back up And they will go higher I agree with That statement what I don't agree with Is that not every altcoin will turn back Up and go to new highs not everyone will

So Sort of the retort of just you wait yes It's true that the collective altcoin Market will likely eventually go to new All-time highs every individual altcoin That saw these crazy highs in 2021 most Of them will probably not go to new Highs it could be a group of new Cryptocurrencies that go to new highs or A select few from the prior cycle so we Have to be we have to remember that we Also know that holding their Bitcoin Pairs is an important thing before you Know for for the awkward Market to sort Of understand my opinion if they're Worth the risk or not it's not Financial Advice that's just how I look at it so What I want to do in this video is I Want to show you how a DCA strategy for Bitcoin has been going and then how it Compared to all coins we'll look at over Various time frames all right So the first strategy People who DCA Bitcoin 100 bucks a week I bet there's plenty of people that fall Into this category 100 bucks a week starting at the Beginning of the year So let's just you know let's just ignore 2022. and we'll look at it later but Let's just say you know what you came in In 2023 Fresh Start DCA 100 a week no Matter what right no matter what how Would you panned out how would your how

Did your portfolio be doing well you Would have invested 3 800 because we're 38 weeks into the year you would have Accumulated approximately 0.148 Bitcoin And your portfolio value would be worth 3960. so you'd actually be up about 4.21 That's not bad especially considering The recent price action now this could Easily turn red Later on in the year easily it often Does in pre-halving years So we have to remember that in Prehabbing years what we accomplish is We wreck the Bears and we wreck the Bulls we get both sides sufficiently Wrecked before we get to the having year So Right now the people who have been dcing Bitcoin they probably feel okay because Their value of their portfolio is Slightly higher Than what they put in right and if That's the case then you probably feel Pretty good those people are not going To be as likely to sell as long as their Valuation is trending higher than what They put in where it becomes an issue is If it goes red then some people I'm not Saying you necessarily but some people Might be tempted to sell because of you Know fear whatever they don't they don't Really think that Bitcoin will will come Back next you know in the next few years And that's the the bigger issue that we

Face but what I want to do is is again For 2023 it's been working out really Well for Bitcoin Last week people would have been in the Red right they'd have been down two Percent it's probably going to keep Happening right like you're probably Going to see this go into the red Especially as we get into the latter Months of the year But that's not the issue the issue is The altcoin market and how people are Doing over there and before we get to The altcoin market let's go take a look At eth so we're going to compare this DCA Bitcoin strategy to eat What if going into the year you said That you that you wanted to buy eth Instead of Bitcoin and instead of Putting 100 in a Bitcoin you put 100 in Each because someone told you that you Know it's deflationary and it's going to Outform bitcoin right we've been on the Other side of that I've been pretty Clear that I think the ether Bitcoin Pair is going down but if you thought That the supply-based deflationary Aspect of it right the supply-based Model the deflationary aspect of Ethereum was more important and you put A hundred dollars into eth every single Week this year instead of Bitcoin your Value of your portfolio would be down 5.6 percent so had you put it into

Bitcoin it would be up four point two Percent had you put it in eth you'd be Down 5.6 now if if Bitcoin drops And those people end up going underwater Five to ten percent and the people who Did that for ethereum could be Underwater you know 15 to 20 percent and That's what often happens in the second Half of the prehabbing year is that you You wreck you know you wreck both sides Right you wreck the the Bears in the First half you wreck the Bulls in the Second half you go up long enough to get The Bulls a false sense of security and Then you go down Um and and you sort of wreck both sides Before the having year so you can see Here that dc-ing Bitcoin you'd be up 4.2 Percent do you seeing each year you'd be Down 5.6 I'm sure there's a lot of People here that have been DC and youth They have no problem being down five and A half percent they're like you know What's been talking about this is par For the course we know this going in the Issue is is what if Bitcoin drops you Know 10 20 where does that leave and Again like they might not care about That and and they're probably they Probably have a valid point to say well Eventually it could recover and they're Probably right but it doesn't detract From the the strategy Which was if you're gonna you know

Bitcoin is the safer option especially From a risk adjuster returns perspective In the prehabbing year and in the bear Market year you know you can use the Just you wait strategy all you want to Right you can and there's a good chance Eventually it'll work out but it doesn't Change the fact that dcing Bitcoin has Been better than dcang eth this year Right it has been I mean and you can see that on The Ether Bitcoin chart ether Bitcoin has been Putting a little lower high since the Merge now ethereum it's down five and a Half percent or so but a lot of these All coins are down a lot more like if You were to go look at cardano cardano a DCA strategy in cardano you put if you Put 3 800 in this year 100 bucks a week It'd only be worth 2 895 right now you'd Be down almost 24 dcing Ada now think About that had you DCA Bitcoin this year You'd be up four percent had you dc8 Ada This year you'd be down almost 24 Percent So let's suppose you were unaidable and You fundamentally think you know you you Like Ada and you think that it'll do Well next cycle but you recognize that It's not always about You know what what you find important It's sometimes more about liquidity and Where we are in the cycle and instead of Buying Ada this year even though maybe

You like a to the most you bought Bitcoin instead You could then use that Bitcoin to then Go buy more Ada than had you just bought Data because again if you had bought Bitcoin you would be up If you bought Ada you would be down And the Ada Bitcoin valuation has Dropped considerably so this shows you That having put money into Bitcoin over A lot of these all coins you could then Go convert that Bitcoin to those all Coins later and get more of that altcoin Than had you just bought the altcoin Instead and by going with Bitcoin you do Get exposure to the cryptoverse in case The cryptoverse goes up but it minimizes Your downside that the altcoin market Can see So imagine if Bitcoin were to drop Twenty percent you know where does that Put all coins it puts them a lot lower I mean Ada dropped from this point last Cycle until the until the actual low Ada Dropped another like 60 percent or Something maybe even a little bit more Than 60 60 to 70 percent I'm not saying It has to drop that much this time uh There could be you know some element of Diminishing losses but you have to Understand that Altcoin DCA strategies They only work in hindsight when you can Sort of rely on survivorship bias when

You when you can look in the future and Tell me which all coins are putting in New highs then of course you could go You know DCA those all coins today and Then you know it'll work out eventually But the issue is that for every one of Those all coins that goes and sees new Highs there's probably a hundred uh at Least a hundred others that never even Get close maybe even a thousand others That never even get close so you have to Remember that a DCA strategy oftentimes Works for Bitcoin over the macro scale But for a lot of all coins it can be hit Or miss like you know hopefully you pick The altcoin that isn't a relic of a Prior cycle but I don't know I don't Know which ones are going to be relics And I can't tell you and you can't tell Me So when you're in these bear Market Years and prehabbing years it's Oftentimes better from a historical Perspective to just stick with Bitcoin And to say you know what we'll get to The altcoin market when we get to it Let's just let's just see what Bitcoin Does here and it's prehabbing here once We get to The Happening year maybe also Start to outperform at some point but The list goes on and on guys I mean you Could choose a lot of these coins like If you look at B and B let's use some of These like layer ones I mean like Solana

Um Uh let's go with polka dot Avalanche let's just look at those where Would those be All of them are in the red some of them Are worse than others Salata you'd be Down about eight percent B and B you'd be down about 21 percent Ada 24 polka dot about 25 Avalanche You'd be down about 36 percent I'm not Saying that if you had lump summed it at The top I'm saying if you had DCA at a hundred Dollars into avax every week this year You'd be down almost 36 percent because It just keeps going down right Solana isn't as bad as some of the other Ones but one of the reasons for that is Because it it dropped a lot more at the End of last year than the other all Coins did right it dropped 97 from the All-time highs I think most of the other All coins like polkadot Ada and Avalanche I think they draw only dropped Around 92 percent so had you had you Started dc-ing Solana at the beginning Of the year you wouldn't be as down as Much but you probably would have also Carried some pretty significant losses From the prior year right so you know if If especially if you've been holding Salon to the prior year you would have Already been down a lot and so this move That it's had is more so a reversion

Back to the mean But this is interesting I mean look it Shows you this year that at DCA Bitcoin Strategy you'd be up DC angle a lot of These other altcoins you'd be down There's some all coins that you can go On the list and find and you'd also be Up and some of them you're probably Going to be up more than Bitcoin but It's hard to know which ones those are Going to be ahead of time You might want me to click on a lot of Different altcoins and you might be Frustrated that I haven't clicked on the One that you have Again this is a free tool for you to use Just go sign up at the website and you Can use it and you can go click on those Lot coins and you can see how they Performed and some of them have Performed better right some of them have And I don't know exactly is Monero I Mean we could throw a Monero on there Monero you're down about seven percent With this strategy Um actually I I didn't mean to make it The main one So if we go over here let's let's add on Let's add on Matic and Litecoin and Let's let's add on Dogecoin and chain Link Um and what else V chain Let's just go see what all these well Actually I probably added too many but

They're they're disloaded you can you Can see where they are right they're all Those are all still red they're all Still red They're all still red There's some that are green I think uh There are a few altcoins that are in the Green but you kind of have to go digging For them right it's most of them are not Right most of them are not and the ones That are the ones that are are usually Ones that were much lower market cap Okay much lower market cap and a lot of Times if they're green it's not only are They lower market cap but they were also Created more than likely After 2021 So sometimes when you get newer coins They don't have the same baggage they Don't have all the bag holders from the Prior cycle and so those can be you know Those are more likely to be green uh Than the altcoins that are sort of Sticking around from the prior cycle But there you have it right you know People can use the just you wait Strategy all they want and say and sort Of rationalize why dcing their altcoin Makes sense but in the grand scheme of Things Most of them are down 25 not not a lump Sum strategy the DCA strategy they're Down 25 30 right So that's where it shows you that DCA

Bitcoin works out over the macro scale DCA ethereum tends to work out as well a Lot of all coins It's hit or miss You don't really know right and and by The time you know for sure I mean like You you just you can use it as Survivorship bias in the future but it's So hard to know and I would still say That for anyone who sort of heeded what I said Anyone who may be focused more on on Bitcoin as opposed to all coins They still reserve the right at some Point if they wanted to to convert some Bitcoin to those altcoins and they would Get a lot more of those all coins using Their Bitcoin then had they DCA that Altcoin instead right That's the point Bitcoin gives you the Exposure to the crypto verse that many People are seeking in the prehabbing Year in case the asset class goes up While minimizing the downside if Bitcoin Goes Down And if these all coins are Down 20 right if if people are if people Are down 20 30 on a DCA strategy in These all coins this year While bitcoin's green What happens if the DCA strategy for Bitcoin turns red Then the all coins even get hit harder And actually a couple weeks ago it did Turn around right like like last week

Bitcoin DCA strategy was read And and I mean the all queens were Taking a pretty big hit So we'll see what happens but my guess Is a lot of these all coins still could Bleed off and on for the rest of the Year and only sometime in the having Year will some of them start to to look A bit more attractive is my guess or Maybe even the latter part of this year But that's where we stand guys and and You know we've we've talked about this Relentlessly we've talked about the Bitcoin dominance relentlessly we've Talked about all Bitcoin pairs people Always say well why do you talk about Bitcoin dominance so much this is why Right this is why look at look at the Look at the table If you you know if you looked at the Bitcoin Domino's And you thought it was going to go up at The beginning of the year and just said Well Dominus is going to go up probably So why focus on anything else just focus On bitcoin You be up Most everything else you be down Now this is from 2023 what if we change This To January of 2022 would you still be up On bitcoin You would had you DCA Bitcoin starting From January of 2022

You would still be up you'd be up six Percent your nine thousand dollar Investment a hundred dollars a week you Know for you know for almost two years You'd be up six percent your nine Thousand dollar investment would be Worth nine thousand five hundred and Forty dollars If you'd be down six percent Litecoin You'd be down Seventeen percent link You'd be down twenty percent You can look at the list look at this Avalanche the DCA strategy you'd be down Almost 52 polka dot almost 42 percent This is not if you would just lump sums This is if you had dc8 weekly a hundred Dollars It shows you that DCA in Bitcoin in Bear Market years and prehabbing years is Oftentimes much better than DCA in these All coins because they can just keep Going lower right and sometimes they get Crazy rallies back up to the upside but All that does is it draws more money in So that when it goes down people are Even more underwater Because they YOLO in at the top again It's a pretty clear Trend right it's a Pretty clear trend Now Look at 2020 What if you and DCA a lot of this stuff In 2020 And you took it out till let's go say

The September let's just go September 22nd 2021 What do you notice Oh sorry that's 20 20. uh January 1st 2020 to I think the issue is some of These all coins didn't even really exist Back then Um so why don't we just look at ones That did exist okay so first we'll look At Bitcoin Bitcoin you'd be up 83 DCA strategy your 9 000 investment Would be worth You know sixteen thousand dollars Right what about Eve You'd be up a lot Over that time period from 2020 to 2021 You'd be up 310 on eath compared to Bitcoin over that time period 83 for Bitcoin 310 for Eve that didn't happen Until the having year though right To having here you would have been much Better off just focusing with on bitcoin Until you got close to the having year Right I mean it's true Look at look at where I mean eat their Bitcoin last cycle Where when did it bottom out I mean it Did get its macro bottom in September But it still kind of retested those lows In the having year Right in the having year So all this goes to show that it's you

Know you have to understand where we are In the cycle look at Ada you over that Time period you'd have been up 130 Percent look at at uh we have to find Ones that existed you know during that Time period but You guys get the idea now if you carry That out till today where would you be If you carried it out to today You'd still be up on eth right and a lot Of people tell me and you'd actually be Up on Ada and Bitcoin as well but you'd Be more you'd be a little bit higher on Bitcoin than data but you'd be a lot More up on Eve a lot of people say well Ethereum outperformed Bitcoin why do you Keep cherry picking why do you keep Cherry picking you know the the recent Trend but that's not the issue guys I Mean you know in 2019 We were very bullish on The Ether Bitcoin valuation right so you can't you Can't go and say well you're ignoring This no we were very much prepared for That move we called for the ethereum Tsunami we called for this move right we We the first two videos on my channel Are about ethereum's undervaluation on Its Bitcoin pair we called for that move It doesn't change the fact that it's Been lower high since here Right Yes It have outperformed it over here but it

Was in the having year that it started Doing that We're still in the prehabbing year Okay so it's all about where we are in The cycle to understand like what works Out better what what doesn't and the Reason I've made all these videos this Year about this about Bitcoin dominance And last year and and all Bitcoin Pairs And the altcoin Reckoning is from a Humble perspective because I was that Guy in a prior cycle that just blindly Dc8 all coins because I I was just like You know I was the one out there on Twitter you know saying all right just You wait you're gonna be wrong you know You're gonna wish you a DC and these all Coins No right no That was not the case in most cases You'd have just been better off dc-ing Bitcoin At least until the having year and then Once the having year showed up Then getting interested in the altcoin Market right total three the all coin Market didn't even bottom out until two Months before the having last cycle two Months before the having so if that were To happen again you're talking about it Not bothering me out until February It could happen it might not last that Long but it could happen That's several more months from now

The altcoin market can bleed a lot Longer than people usually think it can And a lot of these people will just say Buy the dub they'll say it if you're Down 30 percent when you're down forty Percent fifty percent sixty percent They'll just say buy the dip buy the dip And then they just they hope that they Pick the altcoin that that doesn't Become a relic it's not fun if you pick An altcoin that becomes a relic right The way you mitigate that risk is you Just focus on bitcoin In Bear Market years and prehabbing Years and and then once you get to the Having year in the post having Year all Coins sort of become on the menu if you Will but at least by mitigating the risk You've you can you can preserve Capital To take advantage of the oversized gains That come in the altcoin market once Quantitative easing returns We're still in QT quantitative Tightening all coins don't like it when Liquidity is removed and they more Likely to go down So please understand that I I'm not a Bitcoin Maxi I don't really care what People say I'm not I just recognize the Patterns in the market and we are still In the phase where all coins tend to Struggle and and Bitcoin can also Struggle and by the end of the year Early next year

Things might change maybe the altcoin Market will finally bottom out and start Start moving back up but it doesn't Change the fact that you'd have been Better off DCA Bitcoin over the altcoin Market right the math is there the data Is there it shows it yes you can cherry Pick a few altcoins to make the counter Make the counter case but uh that that's Always the case and it does not detract From the overall strategy of focusing on Bitcoin in Bear Market years and Prehabbing years and then getting more Interested in the altcoin market later On if you guys like the content make Sure you subscribe to the channel give The video a thumbs up the sale into the Crypto versus premium will be ending uh The end of September and remember this Tool is free right so I don't want to See any comments saying well how come You didn't show up for this altcoin if You want to go look at it for an altcoin Go sign up go look at it hopefully we Have that altcoin there I'll just sort Of scroll through the list here slowly So that you can see if perhaps your Altcoin of interest is on this list and If it is and you want to see what it Looks like then you can go sign up and Play around with this tool and also It'll actually it'll actually tell you a Little table down here That'll show you you know like the date

And and you know what you would have Bought and how much you know how much Accumulated how much you would have Accumulated to bitcoin at that point and The price of Bitcoin at that phase right So it's a pretty it's a pretty cool tool You know Um and we're still working on on making It better and trying to figure out you Know like the best way to display the Data and all this other stuff Um but that's where we are right now and We will continue to try to provide value Where we can make sure you guys check it Out again it's available on the free Tier I'll leave a link to the free tier Directly to the free tier in the in the Pinned comment okay I'll see you guys Next time bye

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