Topic: Best way to DCA 1.000.000 $ into Bitcoin - page 2. (Read 401 times)

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 .

IF

If price of Bitcoin falls to zero, it means the purchasing power of the USD will increase, and with $920,000, I'll be able to buy much more than with $1 million now. However, statistics show that over the last 100 years, the purchasing power of the USD has only decreased, and in the past century, it has fallen by a factor of 10. Do you have evidence that the USD won't depreciate by another 5 times over the next 50 years?

If you win a million, chances are you won't be getting that in one go, but something like 200k a year in monthly paychecks. In that case DCA isn't a bad idea.

That said, knowing that I have 800k coming in the next few years and having only 200k to invest, I wouldn't DCA. Chances are you will not get another paycheck before the bull market, so in that case the sooner you have some coin the better. If I had what I have now, so a house, a car and no debt, I'd put 150k into bitcoin all at one go, maybe dividing it into 3 50k purchases over the next 6 months, in case there's a small drop and I can get more for less.

Thats a good point.
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

$50K per week is 20 weeks if you do the math, but would you set your DCA at $50K all the way?

I think that's already the smart way so what do you want from the other way?

 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.

The most well-guarded trading secret is that significantly more profit has been generated by purchasing new highs compared to any other strategy, and the difference is substantial.

Dollar cost averaging (DCA), as we are all aware, is an effective tactic for reducing risk in the bitcoin market. Therefore, if it is possible that you will win a million dollars. I will not fully advise you to use the DCA method first, and I will only ask you to think about and choose the amount you want to invest in Bitcoin and do it once. This is because the market is still in a bearish phase right now, and if you are buy during this time, I can confidently say that you will benefit. But is it acceptable if you choose to employ the DCA method? I'll just say that you should deposit some money into your Binance account so that you can pay whenever you like each week to reduce your stress about deposits, but for security reasons, it will be better to be depositing $50k to Binance each week and, once you buy it, move it to your non-custodial wallets because leaving your funds in any exchange fully advisable because you be not the only one having control over you funds.

To begin with is very unrealistic to think that if a person happened to win a million dollars then they will invest everything on bitcoin, at most I think someone could invest half of it and then use the rest to pay whatever debts they have, enjoy some of that money and raise their living standards, also I would not use all of that money to perform a DCA strategy and instead I will keep a portion of it to buy the dip in the case the price of bitcoin went down, a good strategy if you ask me as if you put all your money into a DCA strategy then you will be unable to take advantage of the low price if it gets to appear.

to DCA $1m spread in $50k lumps. is obviously 20 weeks

first step is not to just random buy at deposit no matter the price
firstly know where the market is sat at right now

this halving cycles market window is $15k-$70k
and current price is $29k
0  15  30     70
 ||||||||||||||
        ^

right now we are still in the green. so a good time to be buying

i personally would be thinking to DCA more in the green and less in the orange and none in the red
by this i would try to DCA $50k-$25k in orange
and set it to maybe $75k a week now and $100k if the price went below $25k

then on the day you deposit knowing there is a bit of up and down. if today the market is at a more than 5% up compared to yesterday, just wait a little to see if the daily up comes down a bit and then buy.. in the end if no benefit happens you still just buy in before the end of the week.

alot of people will say the whole point of DCA is to just blindly set up an auto debit on your fiat account to just auto buy crypto without stress or worry
where the aim is that you dont care about the price this year becasue DCA is about hoarding for retirement in 20-40 years so playing the temp prices to maximise yield now is a stress thats not needed.

however some like to try to maximise benefits upfront..
EG imagine a mortgage that every 5 years you negotiate new rates.. its better off while interest rates are <3% to pay down more of your loan and have less debt. instead of just ride the mortgage out autopilot style. there is no point just paying whats presumed each month and then later realise your paying out more but not paying down your debt any quicker when interest rates rise

At $1 you could buy 1 million BTC   At $1,000,000 you could buy 1 BTC 

thanks for all the input.
Interesting that so many replys are like "buy a big chunk now before the price goes up". What if the price goes down?
At the current price I could just buy 33 btc. At 20k I could buy 50btc - that number sounds way better. But on the other hand, what if the btc CEO raises the price to 50k and I miss the "btc under 30k boat"... xD

A hardware wallet etc is self-evident for me.

A million dollar to be put for DCA just like that? I don't think so I will be able to do that if I were you. I would just buy Bitcoin at best possible rate and put them in a cold storage. I am very positive about the DCA methodology and in fact keep it as one of the favorite all the time. However, in this case scenario I am not staking my million dollars just like that because I do not want to lose such big amount in single go. Rather I would just trust the Bitcoin and the periodic hikes that Bitcoin gives us due to its volatility. Over the course of time it will definitely go above 100-200% easily, and I would be more than happy to wait for that to happen as our legends in the past did. If I keep doing DCA then it may happen I start losing in between due to large volume. I just dont want that risk. Either I would secure my million or I would just wait for it to grow in the jar just like that.

Do you know why you're an idiot? Because if I ask you to give me the link to the BTC/USD market on Binance dot com, you won't be able to find it. Also you can't find there support for SWIFT or ACH for transfer USD.

If you lost $80k, what would you do to get it back? What do you base it on or do you have any evidence that bitcoin will rise to infinity? You are so focused on profits that you forget about the risks of bitcoin, don't forget that the higher the return, the higher the risk. Bitcoin can be of great value but also can have no value, the future is unpredictable.

Even the basics like depositing money on exchanges and buying bitcoins, if you still don't know how to do it then you are not ready to invest in bitcoin especially in large quantities like the OP is suggesting. And the main question OP wants to ask is there is a better way to invest and DCA in BTC with $1 million.

Someone with that much money don't need any DCA, if I have such big amount of money and currently Bitcoin is under 30k I will buy some Bitcoin, up to 10 BTC and wait till August maybe there will be a lower value for Bitcoin and buy more, your case is different from many crypto investors, most people are not millionaire, they are only trying to be one.

DCA is very important for people that work for a salary per month or have their businesses, we are still struggling to buy 0.5BTC compared to Micheal Saylor who buys Bitcoin in numbers.

If you have this high amount of money just buy bitcoin and go keep enjoying your life, that's enough to make all your worries go away, you are already made.

If someone wins a millions dollars then he/she will most probably get all those things he/she dreams having since childhood. And, let's suppose that the needs of the person require $500k then he/she will be left with only $500k to invest in Bitcoin. Now you should have a proper plan to DCA the remaining $500k into Bitcoin.

For someone like me the smartest way to DCA the money would be to invest it in Bitcoin when it faces a dip, and I would say that Binance may or may not work for such operations and that's why I think a good investor would often try to find other alternatives as well rather than relying only on Binance.

But, if you still want to go with Binance then you should reduce your sending amount to $10k maximum and each week you should set at least limit orders on different price ranges. Keep in mind that setting way lower price limit would not be a good choice because sometimes those limits are not reached and your order won't get filled.


Who said that the OP needs to deposit USD directly on the exchange? There of course has to be involvement of P2P trading for depositing the USD into Binance. For USD related trade P2P still works like a charm and anyone who knows that will probably go with that route.

Binance dot com has no BTC/USD market. You can't deposit there $1m USD. Lol

Smartest in what?

You buy Bitcoin in Binance, you need to verify your account, and withdraw the coins back to your cold storage, that's already enough.

If you're privacy oriented, you must use decentralized exchange and mixer. It also depends on what you want to achieve, you can evading tax by doing that, it's one of the example.

If cash is on hand ready and I'm about to plan certain amount like putting that million on Bitcoin. Yes, DCA is a good strategy but if I think that the price now is as low as it can be then I'd certainly do everything to buy that.

Whilst it's a good to lumpsum it, the problem mostly with exchange is that when you're a buyer and you get that much transactions. That's where you will trigger them and could ask for more docs compliance.

That's pretty much it. If you think that Binance is the good exchange that buy with that money, one thing that you'll need to accept is the possible more IDs that they'll require you.

DCA as you've mentioned, since now we are still in the bear market season where the bitcoin is dip, you can DCA onna weekly basis and buy to hold gradually, but we cannot predict what may come next anytime for the market to rise or not, you can also make the buy at anytime from now and hold since it's a long time investment, the more we may be buying the higher the market price may be going, so taking advantage of the dip to buy twice may be right since we are likely not going more dip than this.


I will advise you to make use of a decentralized wallet to hold your bitcoin, though you may use an exchange in getting them but once exchanged, then you move your asset to a decentralized cold storage wallet, it's not safe to have your long term investment on centralized exchanges.