Taiwanese middle-aged financial writer Wu Danru, who is loved by the audience, recently showcased her investment results in cryptocurrency regular investment: 72%. Although she doesn’t believe in this “anarchic currency”, she wants to experiment with it for a bit longer.
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Financial writer Wu Danru earns 70% from Bitcoin regular investment
Wu Danru: Regular investment is a better choice
Does not consider herself good at high-frequency trading
Investments should assess risks: Not optimistic, but trying to experiment
Regular investment: What is Dollar-Cost Averaging (DCA)?
Wu Danru stated on January 12th: “Regular investment is quite impressive, this is a Bitcoin that I forgot.”
The attached image shows her assets on the Maicoin (MAX) App, through regular investment in BTC (Bitcoin) and ETH (Ether), she achieved a return rate of nearly 79% and 53% respectively.
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(Regarding the regular investment function of MAX, in fact, almost all cryptocurrency exchanges currently provide regular investment functions)
Wu Danru stated: “Actually, whether it’s ETFs or any other investment, as long as it’s not thrown into a scam, regular investment is basically a better choice. Even if it goes down, it doesn’t go down too much.”
Wu Danru stated: “People who like to rush in and out believe in their own extraordinary skills. I don’t have any special skills, I just have patience, so I adopt a certain long-term strategy.”
However, Wu Danru stated that she is not a believer in cryptocurrency. She said, “Before investing, calculate whether you can afford to lose. In terms of the future of this anarchic currency, I am not very optimistic from a theoretical perspective, but I still want to experiment for a longer period of time.”
Dollar-Cost Averaging (DCA) is an investment strategy whose core idea is to purchase specific assets at fixed intervals (such as monthly or quarterly) with a fixed amount of money, instead of investing all funds at once. The main advantage of this method is that it can reduce the impact of market volatility on the investment portfolio and help investors avoid the risk of trying to predict the best market entry point.
The operation of Dollar-Cost Averaging is as follows:
Fixed amount investment: Regardless of market prices, investors purchase assets with the same amount of money in each investment cycle.
Time-diversified investment: Investments are not completed all at once but are spread over multiple long-term cycles.
Market price fluctuations: When market prices are lower, the fixed amount can purchase more asset units; conversely, when market prices are higher, it can purchase less.
Averaging effect: In the long run, the average purchase cost may be lower than the market’s average price.
This method is particularly suitable for long-term investors because it reduces the impact of short-term market fluctuations and is a simpler investment strategy for those who do not want to spend too much time on market research. However, it does not guarantee profits and may not perform as well as lump-sum investment in a rapidly rising market.
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Dollar-Cost Averaging (DCA)
Further Reading:
Bitget collaborates with MAX digital asset exchange to list MAX Token and enhance token liquidity
Taiwanese exchange’s reserve proof updated: ACE provides auditor certification, BitTrust presents asset details