Research shows that Bitcoin accumulation strategy is more suitable for enterprises than dollar-cost averaging.

Gate News bot news, the adoption of Bitcoin by enterprises is well known, most of which involves the classic buy-and-hold strategy, roughly similar to dollar cost averaging (DCA).

Despite the widespread preference for DCAs among all types of investors, recent research from crypto options market maker Orbit Markets shows that DCAs have consistently underperformed a structured product called an “accumulator,” popularly known as “I Kill You Later” in traditional markets, since 2023.

Pulkit Goyal, the trading director of Orbit Markets, stated: “Our backtesting results show that the cumulative strategy has outperformed DCA over the past two and a half years. The performance of the three-month cumulative strategy exceeded 10%, while the longer-term strategies performed even better—the six-month and twelve-month cumulative strategies exceeded 13% and 26%, respectively.”

Goyal added that accumulators provide a standardized and cost-effective method for token accumulation, making them “a natural choice for cryptocurrency fund management companies.”

DCA and accumulators adhere to the same principle - stopping market timing operations. DCA simplifies investment by purchasing in a staggered manner, while accumulators help investors buy tokens at a discount through a structured setup, surpassing DCA during bull markets.

Source: CoinDesk