How to Save in Bitcoin using DCA: A Long-Term Investment Fund
A couple of years ago, I decided to start saving in Bitcoin as part of my long-term financial strategy. I didn’t see it as a speculative instrument, but as an investment fund similar to saving in CETES or a private retirement plan (PPR). My approach is based on the Dollar Cost Averaging (DCA) strategy, which, in simple terms, means investing a fixed amount regularly, regardless of whether the price is high or low. I will explain how I do it and why I believe this strategy can be an excellent way to protect and grow your wealth in the long term.
Why Bitcoin?
Before everything, I want to share why I chose Bitcoin as part of my savings plan:
1. Scarcity: There will only ever be 21 million Bitcoins. This limit makes it a deflationary asset, ideal for maintaining value over time.
2. Decentralization: It does not depend on governments or financial institutions, giving it resilience against inflation and monetary policies.
3. Global access: I can use it anywhere in the world and have full control over my funds.
For me, Bitcoin is like "digital gold," a store of value that has the potential to appreciate significantly over time.
How Do I Save with DCA?
The DCA strategy eliminates the concern about the price of Bitcoin at a specific moment. Instead of trying to predict the market, I focus on investing consistently.
1. I define a Monthly Amount:
I set a fixed amount that I can save each month without compromising my budget. For example, $50, $100, or any amount that is manageable for you.
I think of it as the money I would allocate to a retirement plan or CETES.
2. Choose a Fixed Day of the Month:
Every month, on the same date, I make my Bitcoin purchase. This creates discipline and consistency, which are key for long-term success.
3. I use secure platforms:
I make sure to use a reliable exchange to buy my Bitcoins and then transfer them to a secure wallet (like a hardware wallet) to protect my savings.
4. I Never Worry About the Price:
If the price is low, I get more Bitcoin for my money.
If the price is high, I buy less, but I maintain consistency. This averages my purchase price over time and reduces the impact of volatility.
I See It As a Long-Term Fund
My mindset is the same as if I were saving in CETES or in an investment fund. I’m not looking for quick profits, but to build a solid wealth for 10, 15, or even 20 years from now. This approach has several benefits:
I avoid emotions: I don’t worry about market ups and downs because my goal is long-term.
Financial discipline: Investing regularly has become a habit, reinforcing my economic stability.
Future projection: I know that Bitcoin, like other assets, has cycles, and I hope that over the time I have been saving, the values appreciate significantly.
Practical Example
Assuming that over the last 2 years I have saved $100 monthly in Bitcoin. This is what I have done:
1. Every month I buy $100 regardless of whether the price went up or down.
2. I store those Bitcoins in a secure wallet.
3. At the end of the 2 years, I have invested $2,400. However, thanks to the historical appreciation nature of Bitcoin, my savings have likely already grown.
I don’t think of it as an expense, but as an investment for my future, just like I would with a private retirement plan or saving in CETES.
How to Start?
If you want to adopt this strategy, here is a simple step-by-step guide:
1. Evaluate your budget: Determine a fixed amount that you can allocate monthly without affecting your basic needs.
2. Choose a secure platform: Use reliable exchanges registered in your country to make your purchases.
3. Build the habit: Set reminders or automate purchases to maintain consistency.
4. Keep your savings safe: Once you buy Bitcoins, transfer them to a secure wallet. Remember, "not your keys, not your coins."
5. Be patient: This strategy is designed for the long term. Don't worry about daily fluctuations; focus on your goal.
Conclusion
Saving in Bitcoin with DCA has allowed me to build a solid investment fund without worrying about market volatility. Like other long-term savings, I see this plan as a way to protect my financial future and diversify my assets. The key is to be consistent, patient, and, above all, maintain a long-term mindset.
I hope this approach inspires you to build your own Bitcoin savings plan!
