Topic: Bitcoin DCA - always same amount or do you change depending on price? (Read 323 times)

Plus if eventually planning to sell, but the amount is not large enough to have a positive impact in your life, then I believe OP should continue HODLing, and also continue to support the Bitcoin Movement. There definitely would be no harm in HODLing the money of the Free People in a CBDC World which is possibly coming within 10 years.

 

If you are planning to sell eventually, then adding an amount whenever there is a pump in the market price would be a good idea but if you plan on holding it for a long period of time, wait for the pull back then and if not, just let is stay in that amount. Because instead of profit, it will just be lost trying to increase your asset halfway once a correction occurs; happens a lot and without certainty of its occurence. It is indeed good to desire a bigger profit but if it will just add risk and if it is not supporting chances of bigger profit, then it won't be worthy doing so; the bigger your asset, the bigger your partial loss could be once there's a dump with the market prices.

I try to always DCA the same amount. It's just easier for me.

It might be more profitable to invest different amounts depending on the price tho 

Like you said, it's about strategy if you are sure enough to hold and wait for it to go down then as I said before do that because it is also very good although we still can't predict whether it will go down further or go back up .
Here, when doing anything, everything is justified, whether it's doing DCA without needing to look at the price or combining it with waiting and buying dip, everything can be done because it's really up to us, because we decide our destiny here.

It depends generally the amount you buy depends on the analysis you do as to how down it can go. If you are highly probable that market will fall then obviously it's advisable to keep a larger chunk for the future when price will further fall. And if you are doubtful about the price to further fall then it's obviously better to invest a better chunk right now. But yes if you are not doing any such analysis then it's better to keep equal proportions only.

gambling is just throwing money at a wall no matter where it is and hoping for a future good result

however if the price is lower than a previous. then buying more the lower it goes and less the higher it goes is smart. its the real essence of cost averaging

throwing money at "whatever" is not cost averaging or cost control. its just CRP coin random purchase or coin random price

if you are not even trying to average down your purchase price to maximise accumulation and maximise future gains. you are not doing it right

its those that want idiots to throw money at any price even the highs that want you to buy the high so they can sell to you and leave you at the high, while they buy the next low

No one can blame you. Gamble in shitcoins if you believe that you can profit from it, but for most of the plebs like us, it's better not to take risks because we could never out-trade the market all of the time. There's always a trader who's smarter than you, who's well capitalized, and who has an army of bots programmed to take your Bitcoins away from you. They can't do that if you're just HODLing.

I still do it every week. Not without real reason because my target is still above that because indeed I always convince myself that if the bitcoin price hasn't touched $30k then I will still continue to buy with DCA every week or month. Even though sometimes I also wait for the right price and see if there will be a decline in the near future or not, the conditions are still the same for me.

I think if indeed you choose to wait it can still be done but indeed sometimes things like this are still fifty-fifty and now we are in a temporary decline so it is also still feasible to remain DCA.

While there's a target of how much bitcoin we all want to accumulate, changes in price is an expected term in the market. The potentiality of how much you can buy every time you've got budget ready matters. What's vital is that you're doing it, you buy and you're getting any quantity of bitcoin which is the main plan of buying. If you can't attain and maintain to have that stable amount every time you buy, why does it matter? As long as you DCA and you're filling and executing the plan is the center attraction of this goal.

Each investor should have their own strategy when buying bitcoin. As the price starts to rise, I won't even attempt to enter. So, I don't have to worry about average prices or investment amounts. I only buy what I can afford to hold into these longer in case of dump when I feel this is the right time to pull back to take entry. I improved my patience. Since Bitcoin is so volatile, we can't generate money from it otherwise.

DCA combined with buy on dip seems better. But I think people have their own strategies that they believe are better than others. It's about making a profit, and if you feel your strategy is profitable then you don't have to worry about it in the long term. They can be consistent with their investment strategy especially if they are making profit, but DCA is indeed a recommended choice when facing market volatility.

I think it's about target. If you do set your target below $24k then it's already more than your target to buy and it's only natural to hold off for a while until the price drops again. But I think with that condition if you really want to do it for the long term it can actually be done because regardless of anything if our target is for long term investment then this price is nothing.
As long as you are sure and capable, then do it, but if you really want to hold back, it also returns to yourself.

First thing is that you don't know if it's a dip or a knife falling down, some believed the 40k and then the 30k was a dip, what would have happened if you would have gone greedy and bought ten times more at that price, believing you've made the trade of your life?
DCA is exactly the opposite of daily speculations, if you want to keep acquiring coins at an average you do it on fixed intervals with fixed money, the moment you try to buy more on some days and less on others, the moment you buy consecutively for 3 days and then take a month break that's no longer DCA is more gambling than both investing or trading.


I know a guy that has continuously bought every single dip based on emotions, if I remember correctly he's some sort of president somewhere, he has nailed every single dip so nicely with his laser eyes that his average buy was around 40k in December. A clear indicator that it's better to DCA rather than chase the dip and ran out of money when the real one occurs.

I tend to agree that buying on dips is better than staying consistent on investment time and pattern. Buy in dip has been said to be a great accumulation strategy for any asset including bitcoin, and it feels like there are a lot of people adopting this strategy to make profits on trades regardless of the trading time frame.

You can buy at any price if you have pattern or habit that you have been doing. For example you can do it every weekend before the closing price, or maybe at certain hour consistently. If the goal is for the long term, buying expensive is not a problem.

DCA is a good choice to improve our portfolio balance so definitely, if the price is a perfect buy because of its very low price, then its best  to buy more bitcoin and hold. However, if the price is still a good buy and yet it’s quite higher than the previous price, then it’s best to lessen our DCAing not only because the risk is high, but also there will only be small profits when you buy at already high price and then hold.

Buy regularly at any price because the bitcoin price is not so relevant so when there is free money every week then just buy it is in accordance with what we do with DCA every week, make sure that the current price is still quite low even though some say this is bullish.

Pretty sure the future goal will be more than today so keep piling on as many bitcoins as possible from DCA every week I do that because I believe the long term will be better than now.

If I see green daily candle or pump over the week then I always wait for some correction…because it is necessary for Bitcoin to take some correction after a pump as the intraday traders have to book their profits …once they start booking their profits ,Bitcoin take some correction and I enters the market for some dca as the price is gonna be somehow down from its high of week….
As in today ..I’m not going to enter market and do dca …I gonna wait 2-3 days and will perform dca after some correction until and unless Bitcoin close its daily candle above 25,500 $

calculate a "value:premium" window of expectation that a spot market will wiggle WITHIN

EG most efficient method to acquire bitcoin is the most efficient mining on the planet
no one wants to sell at a loss below the most efficient bitcoin cost on the planet
set that as your bottom line value number

EG most in-efficient method to acquire bitcoin is the least efficient mining on the planet
on one wants to buy at a excess above  other methods to get bitcoin on the planet
set that as your top line premium number

in 2021 it was (my opinion of my math)
$10k-$75k value premium window   where the market was wiggling in the $30k-$69k

in 2022 it was (my opinion of my math)
$15k-$90k value premium window  where the market was wiggling in the $50k-$16k

so lets use say 2022

if the window is 15-90  you would want to buy more the closer it is to 15 and would have set a mid point at ~47k where you decide if you want to stop buying and maybe selling

this first quarter of 2023 is setting itself up as a $17-$110 window . which means dont expect 150k this quarter not anything really above 100k as being a expectation of a ATH this quarter

so while prices are below $25k its still low in the price and in the realms of good value so
buy more.
 0      16.5                   55                    110k
  ||||||||||||||||||||||||||||||||||||||||||||
            ^
          22.5

where by in my opinion i would want to buy less as the number start getting into the orange and red zones

or atleast split your investment up into amount you want to see returns in X years(under 4)
and amount you want to see returns in Y years(over 4). and only risk the Y year return on the orange, red zone. knowing its going to take that amount longer to get returns after corrections and next cycles

You have answered all your questions in your question itself.
I think buying at very high will shift your BEP towards higher peak target. Imagine having your BEP 30k (futuristic) and suddenly bitcoin drops all the way to 15k! What would you do at that time and how will you tackle the average price at that time. It will take lot of efforts for you to shift it down again.

Be cautious you might just get stuck into infinity loop and get fluctuated with your decisions as well. Better to decide where you want to reach in terms of profits? You can easily set the limits by then.

I usually don't increase the money I use to buy bitcoins, especially if market conditions are in sideways mode. But if the market is down and the drop turns out to be deep, I usually add up the amount because I can earn even more bitcoins. And it is by using the DCA strategy that I can earn more bitcoins in every downturn that comes to the market. It depends on the strategy you use, and if you have read many recommendations from other members, you need to make your own choice, and all you need to remember is only to use the money you can afford.