Bitcoin DCA - always same amount or do you change depending on price? - page 2.

JamesDaniel90

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Quote from: Wind_FURY on February 17, 2023, 07:19:23 AM

OP, buy more during the DIP, especially the DIP of a bear market. Why? Because it's giving us plebs another Golden Opportunity to buy Bitcoin with a > 50% discount from the last ATH. When the bullish cycle returns, for front-running, you'll be told that you "just got lucky". Got lucky for buying the DIP, to HODL, that no one wanted to buy?

Luckily I only started investing in Bitcoin when it crashed to $17000 in June last year and looks like I bought a nice chunk at the bottom too.

Like a lot of us I am sure I didn't expect it to pump this much over the last month but hopefully we have at least one more crash back to around $19000 again before the bull run starts so we can all buy more.

During the real lows in November/December I was more focused on altcoins but have seen quite a few pump at least so I am putting most of my profits into Bitcoin now.

Wind_FURY

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OP, buy more during the DIP, especially the DIP of a bear market. Why? Because it's giving us plebs another Golden Opportunity to buy Bitcoin with a > 50% discount from the last ATH. When the bullish cycle returns, for front-running, you'll be told that you "just got lucky". Got lucky for buying the DIP, to HODL, that no one wanted to buy?

Bananington

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Quote from: JamesDaniel90 on February 16, 2023, 04:53:45 AM

do you buy the same amount each time or less as its more expensive?

Sticking to a a plan and strategy is what DCA is all about. Making the decision to change the amount you DCA depending on price is an inconsistent behavior that should not be accepted when you make the decision to DCA. One aim of dollar cost averaging is to assist you in developing the habit of being disciplined to commit to investing an amount. It does not mean that someone cannot decide to increase the money they allocate to Dollar cost averaging after a while, but what I am saying is, stick to an amount in a certain period, do not depend on the price in the market to decide how much you will DCA, choose an amount comfortable for you and stick with it until you feel like you can invest more or you should reduce your investment.

Lucius

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Quote from: JamesDaniel90 on February 17, 2023, 05:12:42 AM

I don't usually do this due to the risk of the price not going back down again but may do when we next pump as it has now gone back down to $23600.
Hopefully we fall back below $23000 again which is when I will next buy some more.

There is always a risk, especially if you want to make a profit in the short term, or in the specific case to increase the number of your coins by selling at a higher price and then waiting for a dip to buy them back. That is why the DCA method is much safer and makes sense in the long term regardless of the fact that your average price will become higher over time.

However, every strategy can be adapted and you have not committed to anyone that you will use it in a certain period. In any case, it seems that you are going in the right direction, and the only question is how quickly the amount of your BTC will increase.

Rikafip

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Quote from: Finestream on February 16, 2023, 02:42:17 PM

The best time to buy is when the price is low so definitely, increase your DCA if there is more opportunity for a big buy. But when the price starts to rise again, just keep on DCAing but maybe control your expenses as it’s never a good time to buy when the price is quite high.

Are you actually doing DCA if you are buying more when price is "low" and buying less when price "high"?

Point of DCA is to buy with the same amount at the regular intervals without worrying about current price as you are buying with the intention to hold for longer period of time. Its supposed to be hassle free and what you suggested him to do is everything but that.

JamesDaniel90

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Quote from: Lucius on February 16, 2023, 12:01:40 PM

Quote from: JamesDaniel90 on February 16, 2023, 04:53:45 AM

I currently have 0.08 BTC at an average price of $19000 and just wondering what everyone does when we have pumps like we are currently seeing.
---
I usually DCA weekly but thinking I may miss this week and buy more once we have another pullback.

If you are already convinced that the price will be $23k or lower again, why don't you sell your 0.08 BTC at a price that is currently around $25k and then buy at a lower price? To be clear, this is no financial advice, but DCA doesn't make much sense if you calculate the way you do it.

What if the price goes towards $30k and stays there for the next few months, and then rises again? Your average price simply has to increase because the price of BTC is increasing, or rather it is recovering to the levels where it was before it was affected by various scammers who shook the entire crypto market with their actions.

I don't usually do this due to the risk of the price not going back down again but may do when we next pump as it has now gone back down to $23600.

Hopefully we fall back below $23000 again which is when I will next buy some more.

Finestream

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Quote from: avikz on February 16, 2023, 05:25:42 AM

Quote from: JamesDaniel90 on February 16, 2023, 04:53:45 AM

Hello all,

I currently have 0.08 BTC at an average price of $19000 and just wondering what everyone does when we have pumps like we are currently seeing.

I feel I have a great average currently but now that it has shot up to $24,600 buying now will increase my average price quite a lot.

I usually DCA weekly but thinking I may miss this week and buy more once we have another pullback.

Just wondering what everyone else does, do you buy the same amount each time or less as its more expensive?

It's always good to keep your eyes open while doing DCA. So I wouldn't suggest you to invest same amount in all market conditions. Rather, invest more when the price is less than your average buying price and invest less when it is higher. That's the wisest route to take.

Because if you keep investing same amount when the price is higher, you will risk increasing your average price. So play slow when the market is higher than your average buy price.

The best time to buy is when the price is low so definitely, increase your DCA if there is more opportunity for a big buy. But when the price starts to rise again, just keep on DCAing but maybe control your expenses as it’s never a good time to buy when the price is quite high. As long as you spend the amount that you can afford to lose, that will be good enough.

livingfree

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Quote from: JamesDaniel90 on February 16, 2023, 04:53:45 AM

Hello all,

I currently have 0.08 BTC at an average price of $19000 and just wondering what everyone does when we have pumps like we are currently seeing.

I feel I have a great average currently but now that it has shot up to $24,600 buying now will increase my average price quite a lot.

I usually DCA weekly but thinking I may miss this week and buy more once we have another pullback.

Just wondering what everyone else does, do you buy the same amount each time or less as its more expensive?

When I am uncertain whether to buy or not, I just don't buy if I feel that it's quite high already. I'll wait for a couple of days to see if this increase will or won't decrease anymore.

By that time that I'm able to confirm that it's going to continue moving up then, I'll decide to just continue my DCAing again. That's usually the routine that I does.

But if you just want to be consistently accumulating then, whatever the price is, you'll buy.

noorman0

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Quote from: Picaflor on February 16, 2023, 08:05:07 AM

-snip-
But without the ability to predict the market it's risky. What if it never drops below $24k (or whatever level you set), you'll never buy BTC again and,

I just take a simple strategy, then continue the DCA-2 formation or set the DCA-3 with a smaller buy level, eg $ 50 per buy. The DCA strategy must be as flexible as possible according to the portion of the funds. There is always an opportunity to take profits at every momentum, there are also no rules against doing DCA at a certain price level.

Quote from: Picaflor on February 16, 2023, 08:05:07 AM

-snip-unable to save the fruits of your labour, you'll end up being poor.

Umm, I think you are exaggerating, the average person thinks DCA is the most effective in the long term investments.

Lucius

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Quote from: JamesDaniel90 on February 16, 2023, 04:53:45 AM

I currently have 0.08 BTC at an average price of $19000 and just wondering what everyone does when we have pumps like we are currently seeing.
---
I usually DCA weekly but thinking I may miss this week and buy more once we have another pullback.

If you are already convinced that the price will be $23k or lower again, why don't you sell your 0.08 BTC at a price that is currently around $25k and then buy at a lower price? To be clear, this is no financial advice, but DCA doesn't make much sense if you calculate the way you do it.

What if the price goes towards $30k and stays there for the next few months, and then rises again? Your average price simply has to increase because the price of BTC is increasing, or rather it is recovering to the levels where it was before it was affected by various scammers who shook the entire crypto market with their actions.

michellee

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I have set the same amount of fiat money to buy bitcoins, regardless of the bitcoin price. So it doesn't matter if the bitcoin price is now $24k or even more because I didn't increase the fiat money to buy bitcoins. Maybe the amount of satoshi I will receive is smaller if the bitcoin price goes up but that's okay because I have to adjust to the money I have. Also, with this increase, there will be a correction moment for the bitcoin price and it is then that maybe my number of satoshis will increase.

Doing DCA every week is good to continue. But you must have a target for when to stop investing in bitcoin, whether it's a target for how many years or at what price you will stop investing in bitcoin and just wait for moments of high increases or even prolonged rallies later.

posi

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Quote from: JamesDaniel90 on February 16, 2023, 05:11:23 AM

Quote from: Wapfika on February 16, 2023, 05:05:05 AM

I usually skip doing DCA when I saw solid green candle and wait for a couple of days for a minor correction. Since you already have a good position with average buy price of 19K, Wait a bit for correction is the right thing to do because your initial investment is already on profit and there’s no need to chase for more profit by buying on a pumped price.

But of course this depends on your terms of investment. If you are looking for a long term investment such as a year or more, The price doesn’t matter whether it’s currently pumped or dumped because this price movement is only short term while you can average your buy a lot more on the following months coming.

Bitcoin is the one part of my portfolio I plan to hold till 2030 at least , most of my altcoins I will sell next bull run.

I will wait a few days and hopefully Bitcoin drops back down to $23k again which i will set as my next buy.

If so, things will be easier, people are expecting bitcoin to hit $100k in the next bull season in 2025. And would you try to predict what will be the ATH that bitcoin will reach in 2030? 150k or 200k or more...Set your sell target and compare it to the current buy price, you will know whether to buy now or wait for bitcoin to correct for a better price. For me, 24k and 23k don't make too much of a difference, because it's a long-term investment.

lionheart78

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Quote from: JamesDaniel90 on February 16, 2023, 04:53:45 AM

Just wondering what everyone else does, do you buy the same amount each time or less as its more expensive?

When it comes to DCA, I allocate the same amount weekly. Let us say I have free funds of $40 weekly, then that is the amount I am spending to DCA. Price of Bitcoin is irrelevant, I just buy $40 regularly regardless it is dumping or surging.

Since my goal is long term and thinking that the price today is nothing compare to the price of Bitcoin in the future, I believe the most important part is that we are adding more Bitcoin to our stash in a regular basis.

salad daging

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I myself don't determine in terms of price I will continue to accumulate when the dollar is ready, for example, a week of $60 if the price is above $24k then I will still buy and enter DCA because this is still the lowest area in my reach so it is impossible to have to wait longer to get off because it's hard to guess.

It also depends on financial conditions, so I usually don't differentiate between going up or down, I just want to continue to accumulate without knowing the price in my principles, but if it's above $ 30k then I will consider returning in that area to make sure how big it is. must be bought in rising or falling conditions.

Ayers

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If you define this as a long term investment and only sell bitcoin when it hits a new ATH, or $100k, then I think 24k is still not too high, you will still be profitable. I DCA monthly, or whenever I have idle money, I will switch to bitcoin, to be honest, when bitcoin reaches 20k, then 24k like now, I am not happy because I think I have run out of opportunities to buy cheap. But we have to accept the present, as long as bitcoin stays below the old ATH, it is always worth buying and holding.

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Quote from: JamesDaniel90 on February 16, 2023, 04:53:45 AM

I currently have 0.08 BTC at an average price of $19000 and just wondering what everyone does when we have pumps like we are currently seeing.

I feel I have a great average currently but now that it has shot up to $24,600 buying now will increase my average price quite a lot.

I usually DCA weekly but thinking I may miss this week and buy more once we have another pullback.

Just wondering what everyone else does, do you buy the same amount each time or less as its more expensive?

Try to tweak your strategy.

I mean in times like this where the market is pumping, it's pretty obvious that you don't want to buy Bitcoin and wait for it to go down at least. Keep the money that you want to use for this week and use it next week or until it goes down. After all, you are doing DCA "weekly" and there are still a few days left to end the week. Maybe we might see a bit of a downward movement after this pump (which is what always happens), and that's the time where you need to buy Bitcoin.

As for what I'm doing when I'm seeing pumps, nothing Cheesy

. Maybe I'm a bit happy to see a pump but, I'm not buying when a pump happens, but at the same time, I'm not also selling when a pump happens unless, it's time for me to sell (I've have my own strategy of selling some of my Bitcoins).

Keep your money for the week if it does not go down. be patient and wait for the dump to happen. Tweak your strategy. Have some Plan B's and Plan C's.

naira

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Quote from: JamesDaniel90 on February 16, 2023, 04:53:45 AM

Hello all,

I currently have 0.08 BTC at an average price of $19000 and just wondering what everyone does when we have pumps like we are currently seeing.

I feel I have a great average currently but now that it has shot up to $24,600 buying now will increase my average price quite a lot.

I usually DCA weekly but thinking I may miss this week and buy more once we have another pullback.

Just wondering what everyone else does, do you buy the same amount each time or less as its more expensive?

It's as simple as this: If within 1 week you always take the time to buy then there is a 7 day option to make a purchase. So you don't need to force yourself to buy when it's green, because within a week you can have 7 choices and will definitely be adjusted to the price when a correction occurs. DCA is a good step, but choosing a purchase at the right time also requires careful consideration.

Picaflor

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Quote from: noorman0 on February 16, 2023, 07:42:08 AM

Yes, it depends on market conditions, so it's good if you have a strategy of doing multiple DCAs for each price level (this will readjust your buying levels).
For example, at a price level of $16k to $20k, each of your purchases is $100 (DCA-1). Once the price level goes up $20k to $24k it will be $60 (DCA-2), etc. In this case, your portfolio should be separate.

That would make sense if you knew BTC was going to range between $16k - $24k.

But without the ability to predict the market it's risky. What if it never drops below $24k (or whatever level you set), you'll never buy BTC again and, unable to save the fruits of your labour, you'll end up being poor.

d3nz

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Quote from: noorman0 on February 16, 2023, 07:42:08 AM

Yes, it depends on market conditions, so it's good if you have a strategy of doing multiple DCAs for each price level (this will readjust your buying levels).
For example, at a price level of $16k to $20k, each of your purchases is $100 (DCA-1). Once the price level goes up $20k to $24k it will be $60 (DCA-2), etc. In this case, your portfolio should be separate.

By now you have accumulated quite a lot with a good buying average.

DCA is really a great strategy and timing is really the key. Just always buy if it's on a red candle on a 4H timeframe and set an alarm for the target price if it hits. I can see that the market could reach $25k in no time and another retracement before it goes up again.

noorman0

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Yes, it depends on market conditions, so it's good if you have a strategy of doing multiple DCAs for each price level (this will readjust your buying levels).
For example, at a price level of $16k to $20k, each of your purchases is $100 (DCA-1). Once the price level goes up $20k to $24k it will be $60 (DCA-2), etc. In this case, your portfolio should be separate.

By now you have accumulated quite a lot with a good buying average.

Topic: Bitcoin DCA - always same amount or do you change depending on price? - page 2. (Read 314 times)