Dollar-Cost Averaging Cryptocurrency: Historical Backtests, Optimal Contribution Schedules, and Tax-Efficient Execution Strategies
Introduction: Why Dollar-Cost Averaging Matters in Crypto
Volatility is the defining characteristic of the cryptocurrency market. Bitcoin alone has experienced drawdowns exceeding 80% four times since 2011, while simultaneously delivering a compound annual growth rate north of 100%. Such violent price swings make emotional timing mistakes almost inevitable for most