[//]:content-type-MARKDOWN-DONOT-DELETE ![](https://gimg2.gateimg.com/image/article/1741231075gonggao_en.webp) Gate Research recently released the "Auto-Invest Products Backtest Repor" which systematically analyzes the performance of DCA (dollar-cost averaging) versus Buy-and-Hold investment strategies for BTC, ETH, SOL, GT and their portfolio combinations from September 2021 to December 2024. Through quantitative analysis, the report compares different strategies' returns, drawdown performance, and investment suitability across different market cycles, providing investors with a comprehensive framework for strategy evaluation and empirical data-backed insights. **Key Takeaways** 1. **DCA Strategy and Business Logic: **Dollar-cost averaging (DCA) strategy reduces price volatility risk through periodic buying, avoids timing risks. It's particularly suitable for retail investors in highly volatile markets, showing stable advantages in long-term investment. 2. **Single Asset Performance and Backtest Results:** SOL's DCA strategy delivered the highest returns, with a long-term ROI exceeding 375%.** **BTC showed steady growth with ROI around 182%, ETH about 61%, and GT showed high volatility but long-term returns over 200%, reflecting platform ecosystem benefits. 3. **Strategy Comparison and Cycle Adaptation:** Dollar-cost averaging (DCA) typically outperforms Buy-and-Hold (HODL) strategies, particularly in bear or volatile markets. However, HODL provides greater flexibility during market bottoms or early stages of trend reversals. The return differences among daily, weekly, and monthly DCA are minimal, with weekly DCA best balancing convenience and the risk-return ratio. 4. **Portfolio Effects and Asset Allocation: **Equal-weight portfolio of BTC, ETH, and GT effectively reduces drawdown and stabilizes returns. Adjusted allocation (BTC 50%, ETH 25%, GT 25%) further controls downside risk while slightly improving returns. 5. **Market Cycle Performance and Strategy Adaptability: **The differences between strategies are minimal in a bull market, while dollar-cost averaging (DCA) has a significant advantage in a bear market. HODL provides greater flexibility at market bottoms, whereas during recovery phases, both DCA and combination strategies yield stable returns. 6. **Long-term Strategy Recommendations and Operational Guidelines: **DCA with portfolio diversification is ideal for most investors, offering a balanced approach to risk and return. Advanced traders who can time the market may supplement this with HODL purchases during market lows. Successful implementation requires regular portfolio rebalancing and establishing clear stop-loss and take-profit parameters. **Click here to download the PDF** **Gate Research** Gate Research is a comprehensive blockchain and crypto research platform that provides readers with in-depth content, including technical analysis, hot insights, market reviews, industry research, trend forecasts, and macroeconomic policy analysis. Click the Link to learn more **Disclaimer** This content does not constitute an offer, solicitation, or recommendation. You should always seek independent professional advice before making any investment decisions. Please note that Gate.io may restrict or prohibit all or part of its services from certain restricted regions. For more information, please read the User Agreement here: https://www.gate.io/user-agreement. Investing in the cryptocurrency market involves high risk. It is recommended that users conduct independent research and fully understand the nature of the assets and products they purchase before making any investment decisions. Gate.io is not responsible for any losses or damages from such investment decisions. **Gateway to Crypto** Trade over 3,700 cryptocurrencies safely, quickly, and easily on Gate.io • Visit our Official Website • Download Gate.io App / Web now • Follow us on Gate.io X (Twitter) to get more bonuses • Join our Telegram to discuss hot topics • Join our Global Community to get more updates • We provide 100% proof of reserves • Sign up to enjoy max. $10,000 in rewards exclusively for new users • Get 40% commission from referrals Gate.io Team March 6, 2025

Gate Research: Auto-Invest Products Backtest Report

Gate Research: Auto-Invest Products Backtest Report