Best way to DCA 1.000.000 $ into Bitcoin

otomakanihsotas21

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Thx for all the answers.

Would still love to hear thoughts to this:

Quote from: otomakanihsotas21 on August 03, 2023, 02:49:24 PM

Quote from: salad daging on August 03, 2023, 01:50:28 PM

You've set every week to $50K, but I'm asking if you win $1M is it all for bitcoin DCA? You are not thinking of other assets to diversify.

What asset ist as good as btc?
Housing market? I can tell you houses are a headache + a lot of work and the taxes on profits in my country are a joke. I also think this is the time to sell houses, not to buy - but who knows what the prices will do in the future..
ETF? barely beat inflation.
Stay in cash? haha
Gold? nope

I see no second best after btc

Now I am sceptical about the DCA part. Maybe it would be better to win 2.000.000 and buy btc for 1.000.000 and to dca the second million

livingfree

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You want a one time thing and huge transaction? Then find an OTC market in your area or try to contact an exchange if they can do that for sure.

Yeah, sure DCA is the best method on this one but your situation differs from everyone. If I own a huge amount, I'll keep that already in BTC and won't have to wait any longer for further price drops.

Whatever it is that I think is low now, I'll have it and the deal's done and I'll move forward to my next step and plans.

Ucy

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Quote from: otomakanihsotas21 on August 03, 2023, 12:23:22 AM

lets say someone wins a million dollar and wants to dca 50k weekly into bitcoin.
What is the smartest way to do so?

I know nothing and would send 50k to binance each week and set a limit order every monday. Is there a better way?

Thx

I'm not a fan of DCA, but to avoid "sounding" disrespectful to those who recommend it, I would suggest that your DCA fund(which could be in stablecoin or fiat reserve) be used for supporting Bitcoin, by only selling part of the dollar or fiat reserve for Bitcoin whenever there is a significant dip. As a beginner, only buy when you are certain the next price movement after a dip will be a significant reversal or price increase. The only way to be certain is to follow the posts & predictions of "Bitcoin Master"(He may be the one "talking" to you right now).
You may sell whenever there is price increase or you keep buying every significant dip when you become experienced trader.
Our Prediction for you: Soon, Bitcoin will slightly cross 32,000 and then there will be a major dip after that. You may trade on this.

AbuBhakar

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Quote from: otomakanihsotas21 on August 03, 2023, 12:23:22 AM

lets say someone wins a million dollar and wants to dca 50k weekly into bitcoin.
What is the smartest way to do so?

It’s better spread it on daily basis instead of purchasing bulk every week so that you can average your buy price as much as possible. There’s a DCA on Binance that gives you an option to purchase Bitcoin based on time intervals or whenever price hit a certain price.

You have a huge capital which means you should enter slowly in the market so that you will not pump the price when you buy since your goal is to buy at lower price as much as possible.

virasog

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Quote from: otomakanihsotas21 on August 03, 2023, 12:23:22 AM

lets say someone wins a million dollar and wants to dca 50k weekly into bitcoin.
What is the smartest way to do so?

I know nothing and would send 50k to binance each week and set a limit order every monday. Is there a better way?

Thx

This is no hard and fast rule to DCA and everyone has their own technique for DCA bitcoins.

If I was in his place, I would have the market buy 50K every week into bitcoins. In this way, my average price of bitcoin would have been averaged out at a very decent rate and I think this is the best way to DCA.

However, just keep in mind that you do DCA in the bear market or in times such as now where the bitcoin price is not at all time high and also it is in no way near to its ATH. I prefer DCA in bear season and do not buy Bitcoin at all in the bull market when the prices are very high.

hd49728

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Quote from: nullama on August 08, 2023, 07:23:10 PM

DCA is not necessarily the best strategy

But it's worth considering that DCA usually comes with extra fees in many exchanges, because you might have to pay to deposit each time, and maybe for the conversion each time, where with lump sum you usually pay less in fees overall, plus you might be able to do an over the counter exchange with more favorable rates.

It is not a best strategy for everyone as if you are good with trading or just have good skills to use technical indicators and find a next trend of market, you will be able to do DCA better.

Better because you can find better price and time to buy. It is better than people just buy, DCA at whatever price.

Extra fees on exchange is truly a big problem but like I said, two people DCA differently and they will pay different trading fees as well as withdrawal fees. After withdraw your bitcoin from exchange account to non custodial wallet, you will need plam to consolidate your Bitcoin UTXOs that will cost transaction fees too.

justdimin

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Quote from: fuguebtc on August 03, 2023, 04:11:56 AM

Quote from: otomakanihsotas21 on August 03, 2023, 12:23:22 AM

lets say someone wins a million dollar and wants to dca 50k weekly into bitcoin.
What is the smartest way to do so?

I know nothing and would send 50k to binance each week and set a limit order every monday. Is there a better way?

Thx

For retail investors like us, 1 million USD is quite a large amount and investing in bitcoin requires careful consideration and planning as well as knowledge, otherwise it is very easy to lose money. If it were me, I would DCA weekly like you and I would use binance to do it too. Because with large buy and sell orders, centralized exchanges are still safer because of high liquidity. But you shouldn't leave your bitcoins in binance, always transfer them all to your hardware wallet after completing the buy order.

Yeah true, using a place like Binance would be a lot better and I do not do weekly but I do monthly and I am quite happy about it as well. Every single month I keep on getting more and more money in return and that's how I see that working as well. Think about it, if we are talking about bitcoin growing, then getting some of it right now must be something good for us in the end, there is really nothing wrong with that at all.

Some people may be not happy about the result all that much, but we could end up with a better result one way or another. This is why I believe that we should be focusing on how we could make a profit from this, if we could do that then we are going to be quite happy with what we got.

BenCodie

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Quote from: Queentoshi on August 03, 2023, 12:49:16 AM

Quote from: otomakanihsotas21 on August 03, 2023, 12:23:22 AM

lets say someone wins a million dollar and wants to dca 50k weekly into bitcoin.
What is the smartest way to do so?

I know nothing and would send 50k to binance each week and set a limit order every monday. Is there a better way?

Thx

If you win a million dollars and decide to DCA 50k, It will take a lot of weeks before you will be able to DCA enough. And because of how quickly money can go as it comes, it will better for me to just budget what I need money for, then invest what is left in bitcoins and then continue by the DCA strategy to continue to accumulate more.

Keeping that amount of money for weeks is dangerous not just because it can get missing, but due to fact that it can be spent on somethings that suddenly come up when you have some money. You do not always need to buy bitcoins by DCA.

To be exact, it would take 20 weeks. That's not such a long time Roll Eyes

If you take the right practices in storing the coins, it won't matter if you are storing $1, $10000, $1000000 or $100000000....it will be safe.

How do you achieve this kind of level of privacy? Cold storage & optimal system cybersecurity practices ..and if you don't want the wealth to be tracked, then sufficient privacy measures.

We are aiming to try and create a discussion board for Cybersecurity & Privacy. I recommend checking out the Cybersecurity & Privacy discussion thread, and after doing so, casting a vote on the unofficial community vote to add the board to the forum.

nullama

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Quote from: Sim_card on August 04, 2023, 10:49:16 PM

DCA method is the best strategy like you said OP with 50k weekly. But I might prefer to buy a dip 100k worth for a start then I can start the DCA method. Using Binance wouldn't be that safe and it might lead to the raise of eye brown of the exchange. I would prefer using a DEx with a trusted P2P guy with liquidity so that transaction can go smoothly without a problem. $1M is a huge amount of money and you need to make your purchase for at least 15 times,it all depends on the price of bitcoin when you are buying. The dipper the price the more bitcoin you will get and vice versa this is one thing with DCA method.

DCA is not necessarily the best strategy, it can be better to do lump sum in some cases.

The thing is that it depends on the price of Bitcoin in the future, specifically in the short term where the DCA vs lump sum is done, and that is impossible to predict.

So, just by price, there's no single winning strategy.

But it's worth considering that DCA usually comes with extra fees in many exchanges, because you might have to pay to deposit each time, and maybe for the conversion each time, where with lump sum you usually pay less in fees overall, plus you might be able to do an over the counter exchange with more favorable rates.

Mpamaegbu

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Quote from: otomakanihsotas21 on August 03, 2023, 05:06:47 AM

So, the question is: btc price is for example 29k. I open a limit order to buy for 50.000$ at a limit of 29.1k/btc than there is no way that my order gets filled above 29.1k - Is that right?

To put it right, what you seek isn't a DCA method but how to place an order. I have yet to see where an order opens ahead of the price set for it. However, we can't for sure trust these exchanges that they won't manipulate price to get it filled before its level. By the way, why would anyone want to put that much into buying a coin and then set the price above its current rate instead of setting it below to be picked up during correction? If price were at $29k and I'm certain I want to go in, I would rather place my buy order below $29k at an available support level. That's the best way to go about it

Blitzboy

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Quote from: wiss19 on August 07, 2023, 02:19:23 AM

In reality, if I manage to win something that significant, I wouldn't invest all of it in Bitcoin, I will probably invest about $200k to $300k in Bitcoin and use the rest to set up a real-life business for myself so that I can keep getting money from it because Bitcoin might be profitable but it can't be compared with a profitable real-life business because that will always be earning you revenue regardless of the season or the time in the year, so that would be my first priority.

But, since it is a hypothetical question, I would say that the best way is probably to keep buying after every price interval, like if Bitcoin drops a thousand dollars, you should go ahead and buy some, once it drops a thousand more, buy some more, keep doing that until you exhaust your capital but make sure that you are always buying below your last buying price.

I think its perfectly reasonable to put some of your winnings into Bitcoin and to start a legitimate business at the same time. Your familiarity with both the cryptocurrency industry and more conventional business channels bodes well for your plan.

You make some valid points, such as the suggestion to consider buying Bitcoin at the end of each price interval. To make the most efficient use of available funds, one can consider purchasing items in descending price order. My only concern is that the plan seems a little too straightforward. Yet, it seems that sometimes the simplest solutions are the most useful. Its possible that wont be an issue, but Im still curious. Anyway, I appreciate you sharing your opinions with the community because they are certainly thought-provoking.

posi

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Quote from: wiss19 on August 07, 2023, 02:19:23 AM

In reality, if I manage to win something that significant, I wouldn't invest all of it in Bitcoin, I will probably invest about $200k to $300k in Bitcoin and use the rest to set up a real-life business for myself so that I can keep getting money from it because Bitcoin might be profitable but it can't be compared with a profitable real-life business because that will always be earning you revenue regardless of the season or the time in the year, so that would be my first priority.

For the big investors, $1 million is nothing to them, but to us it's a huge amount of money and we can do a lot with it. I will be like you, I will only invest $300k in bitcoin, the rest should open a few businesses and diversify assets to generate daily income would be much better to put all of it into bitcoin. Bitcoin has real potential but that doesn't mean it's risk-free so investing the entire $1 million in it is really not a wise idea. Diversification is something we should never forget.

wiss19

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In reality, if I manage to win something that significant, I wouldn't invest all of it in Bitcoin, I will probably invest about $200k to $300k in Bitcoin and use the rest to set up a real-life business for myself so that I can keep getting money from it because Bitcoin might be profitable but it can't be compared with a profitable real-life business because that will always be earning you revenue regardless of the season or the time in the year, so that would be my first priority.

But, since it is a hypothetical question, I would say that the best way is probably to keep buying after every price interval, like if Bitcoin drops a thousand dollars, you should go ahead and buy some, once it drops a thousand more, buy some more, keep doing that until you exhaust your capital but make sure that you are always buying below your last buying price.

kryptqnick

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$1 million is a significant amount of money, but what's the point of gradually putting it into Bitcoin? I think people use DCA to invest slowly, at a comfortable pace, and potentially indefinitely. $50k weekly means $200k in a month, and a total of 5 months to put $1 million into it. I guess it does take a while, and it is DCA, but I just don't get the reason for doing it this way if a person is ready to put all of this money into Bitcoin.
As for Binance, at least it's certainly not a good idea to store BTC there. If there is an option to purchase BTC and get the money directly into a non-custodial wallet, that's the desirable solution, but it depends on a jurisdiction, I think.

tw0.625

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Quote from: GreatArkansas on August 04, 2023, 12:06:49 AM

You are right but let's go to the point of OP like what they want is a better way to DCA worth 1,000,000 USD.
Before you can use it to buy in Binance, you really need to convert it to some stablecoins.
I want also to add that there are already a lot of ways to DCA now, especially on Binance, they have this DCA strategy and you can configure it based on what you want .

Converting dollars into stablecoins with the subsequent holding of stablecoins is a rather risky operation. Two months ago USDC experienced a ~10% drop against the dollar. USDT is currently trading at a discount on many exchanges. Why should I get involved in such a shitcoin-casino like Binance? My choice is clear - I will choose an exchange that offers a BTC/USD market, especially if my trading strategy is designed for six months or several years.

michellee

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Of that one million dollars, I want to use 50% of it to invest in Bitcoin with DCA. That means I'll be using around $500k and $ 10k- $ 25k weekly is best because using $50k immediately might raise suspicions from Binance unless you verify your account into the highest level.

You can also use P2P exchanges where you don't need to verify your account in such a complicated way. Using a P2P exchange, you can find a trusted seller but be careful because we don't know the truth.

Don't attract too much attention from people, including exchanges or P2P exchanges because Bitcoin is now so famous that there will be people who want to harm you. Better to do it slowly and safely. That's all that matters. With that one million dollars, you should be able to save the money properly and not only invest in Bitcoin but you can have many investments. And save money to meet your needs because it is also important.

mindrust

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Quote from: otomakanihsotas21 on August 03, 2023, 12:23:22 AM

lets say someone wins a million dollar and wants to dca 50k weekly into bitcoin.
What is the smartest way to do so?

I know nothing and would send 50k to binance each week and set a limit order every monday. Is there a better way?

Thx

That's 20 weeks of DCA'ing. (~5 months) I don't think that is a suitable time period for this strategy. DCA'ing takes years. Usually more than 3-5 years. 5000 USD per week is a better way of playing this imo. You can keep you money in short term high yield bonds while you are slowly DCA'ing into bitcoin so your FIAT will get less affected by inflation. Stocks is a good alternative too. There are pretty good high yield dividend stocks, you are park your money there too.

Sim_card

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DCA method is the best strategy like you said OP with 50k weekly. But I might prefer to buy a dip 100k worth for a start then I can start the DCA method. Using Binance wouldn't be that safe and it might lead to the raise of eye brown of the exchange. I would prefer using a DEx with a trusted P2P guy with liquidity so that transaction can go smoothly without a problem. $1M is a huge amount of money and you need to make your purchase for at least 15 times,it all depends on the price of bitcoin when you are buying. The dipper the price the more bitcoin you will get and vice versa this is one thing with DCA method.

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Actually a good approach but how do you intend to spend $50k in millions to have finished before the market will changes it directions, while not go by percentage than that with $50k. Is a smart move though but it takes time but if you go by percentage you could get it all at the good spot, judging from the last ATH you can physically see that $29k plus also pretty much better place to start buying by percentage. Or better just follow your instinct if you think that is the best then just follow it because no one would bear the lost with you.

Dr.Bitcoin_Strange

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Quote from: otomakanihsotas21 on August 03, 2023, 12:23:22 AM

lets say someone wins a million dollar and wants to dca 50k weekly into bitcoin.
What is the smartest way to do so?

I know nothing and would send 50k to binance each week and set a limit order every monday. Is there a better way?

Thx

@OP, With the current price of Bitcoin, I consider it to still be so low that if purchased now, one can make a huge profit if the price gets to $50k, $80k, or even $100k and above. Having a million dollars now, you would be able to purchase about 33.333 Bitcoin, which is really a huge sum of Bitcoin, and perhaps if one Bitcoin gets to $80k, you will make about $1,650,000 profit plus your capital, which is $2,650,000. If you can get this profit any time Bitcoin gets to $80k, then why would you just want to waste a lot of time DCAing? Well, it depends on what you want, but if I were you, since it's advice that we should always keep some fiat when Investing in Bitcoin, I would also Suggest that you just buy about 20 pieces of Bitcoin, then reserve the rest of the fund in fiat. Maybe you can keep DCAING with that reserve. just my opinion.

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