Financial Writer Wu Danru Earns 70% through Dollar-Cost Averaging in Bitcoin: Despite Skepticism, I Am Willing to Continue Experimentation
Taiwanese financial writer Wu Danru, who is beloved by the middle-aged audience, recently showcased her investment results in cryptocurrency through regular fixed investments, which yielded a return of 72%. She stated that although she doesn’t believe in this “decentralized currency,” she wants to experiment with it for a bit longer.
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Financial writer Wu Danru earns 70% from regular Bitcoin investments
Wu Danru: Regular fixed investments are a better choice
Does not consider herself skilled in high-frequency trading
Investments should assess risks: Not optimistic, but willing to experiment
Regular fixed investments: What is Dollar-Cost Averaging (DCA)?
On January 12, Wu Danru posted, “Regular fixed investments are quite impressive. This is some Bitcoin that I had forgotten about.”
Accompanied by the displayed assets in the Maicoin (MAX) App, she obtained returns of nearly 79% and 53% through regular fixed investments in BTC (Bitcoin) and ETH (Ethereum), respectively.
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(Regarding the regular fixed investment function of MAX, in fact, almost all cryptocurrency exchanges currently provide this function)
Wu Danru expressed, “In fact, whether it’s ETFs or any other investment, as long as it’s not thrown into a fraudulent group, regular fixed investments are generally a better choice. Even if it falls, it doesn’t fall 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.”
Nevertheless, Wu Danru stated that she is not a believer in cryptocurrencies. She said, “Before investing, estimate whether you can afford to lose. In terms of the future of this decentralized currency, even from an academic perspective, I’m not very optimistic. However, 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, rather than investing all the funds at once. The main advantage of this method is that it can reduce the impact of market fluctuations on investment portfolios 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 purchases fewer units.
Average cost effect: Over the long term, 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 volatility 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 investments in rapidly rising markets.
MaiCoin
Max
Wu Danru
Dollar-Cost Averaging (DCA)
Further reading
Bitget collaborates with MAX digital asset exchange, listing MAX Token to enhance token liquidity
Update on Taiwan’s exchange reserves: ACE provides auditor certification, BitTrust presents asset details.
