Topic: Bitcoin Investing - DCA (Read 542 times)

Makes sense, and i believe as time goes on i will adjust my numbers to allow myself to invest more into other areas other than my bank savings.

 My bank has a feature that rounds up the change from card payments with a multiplier, so I've setup what is called a pocket in the app for this very reason - every time I make a purchase it rounds up the change to the next £1 with a x2 multiplier along with any cash back and daily interest from my savings account goes into the pocket which then goes towards purchasing extra BTC.

It's all about investments, we should be proactive about it and find the best means that will not only earn us money but also be the best practices for us. I love the DCA approach really, it has helped me not to miss out on my investment in Bitcoin and others. If not for this, I would have missed out because I didn't start the investment so accurately, and when I eventually started, Bitcoin was selling at the time last year, however, this didn't stop me, I was just pumping the money on a weekly and monthly basis due to the time of the certain DCA I used. This is why I started with the "best practice" remarks, you might have 2-3 or more DCA plans on the same investment package, it doesn't matter. What I did was to have one with a weekly injection of the money, while another is a monthly injection and the last one is being done randomly.

With these, I was able to have a sizable amount of Bitcoin in my wallet and as been nice with the way the asset is behaving so far. However, the next style I would do now is just to inject money into Bitcoin without strict adherence to the DCA plan. How do I do this? I will do it simply by sending all my spare money into my wallets and I will make this frequent, but this will not go to Bitcoin alone but to other cryptocurrencies I own as well. This means that I will not be saving as much money in my bank account as I used to do and any spare money must enter my wallet regardless of the price of the coins/tokens I am buying and I will keep this working for over a year. This might sound crazy but I have a big trust in cryptocurrency within a year. We should know that without risks, there can't be gains.

You will never be able to decide to invest as much money in altcoins as you invest in Bitcoin, because Bitcoin is the most reliable investment that you will not have to worry about. You can allocate some amount to altcoins, in the end you will divide it into several parts and buy different altcoins, some of them will grow better than Bitcoin, some will grow worse, but if among these altcoins there is not one that will show super growth, then this idea will not work sense. Altcoins are a lottery of sorts, you may or may not get lucky.

By nature, I'm very risk-averse so always ensure I research to the point it becomes an obsession lol, but I've wasted so much money over the years that I wished I had put to better use, but we can't regret the past, can we? Anyhow, it's about what I do now moving forward, which I want to make count. I have sat and amended my budget sheet to go over the numbers and make sure I'm not leaving my self short, as I really want to remain disciplined with my investments and not withdraw ANY funds over the short term, unless of course something unforeseen happens in my life that exceeds the money I have in my bank savings.

Another poster suggested looking into the S&P 500 as a form of diversification, which again I will research before committing myself, but I also have a plan to purchase some alts whenever some extra cash becomes available (my working week usually ends between 50-55hrs which my budget works from, but during busy periods can often exceed 60+ hours, so I will treat myself as a reward and put the remaining money into investments.

It depends on you how you split your investment, whether 50/50 or 60/40. But my personal advice is that I prefer to invest more in Bitcoin compared to Altcoins, maybe 80/20 would be better. But that's my personal way, every investor has a different view on investing and maybe you have a different view and just believe in what you want to do. The most important thing is how you can manage your investment and understand the risks of investing in crypto.

That's great if you want to spread your investments over the medium and long term. Many investors also do this so they can increase their investment amount.
What you have to think about is finding other investments or you are already interested in investing in altcoins and I see you have already invested in XRP. It is a good choice but you have to be calm because the movements of altcoins are more unpredictable because they follow the movements of bitcoin.
Having several investments for the medium and long term can provide its own benefits. Often these medium term investments can exceed long term investments but that depends on the coin you choose.
And you can be disciplined in what you do so you will be able to get maximum profits in the future.

There is always some bit gambling at some edges of businesses, so at this nature, I would advice your channel most of your Invests towards the best reliable and most profitable source which is Bitcoin you can then have some  to other desired.
Also, of you have got this capital (money) currently at hand, then I can tell that logically, you don't need to buy your coins on the weekly structured basis and you thought about. The strategy of sequential purchase in Bitcoin or AltCoins is either considered of the investing fund for a capital or accumulating of the coins is either not available yet or that the Bitcoin investors is looking up to the volatility nature of the market to flop and then can Invest to accumulate or invests .
I am to say that the market price is encouragingly appreciating impressively so I would suggest you go ahead and pump your fund there in purchasing of your Bitcoin and take advantageous chances about her current bullishness of the coin Bitcoin else your weekly target May have you some sorts of regrets why you never bought and accumulated more now that the markets price values was roaring high. So no need of the weekly purchase. If the ETH is approved then the flop of the Bitcoin price is not going to come today's not tomorrow.
This why the stair step price values is consolidated awareness because the market demands and supplies of cryptos is sentimentally in a comparison of its investors action.
You can look at the Coin market cap to track the Cryptos prices. https://coinmarketcap.com/currencies/bitcoin/#markets

Good morning. Thanks for the suggestion.

I believe I'm doing fairly well in terms of taking responsibility for my finances. I have searched on the platform i use and S&P 500 is called SPX500 or SPDR S&P 500 ETF? I have browsed through the app to check on what else is available for investment and will certainly put this into consideration - but like anything I do, I will research it thoroughly.

I'm constantly looking at and amending my budget sheet to highlight ways of utilising my money better - When I first set up my budget I was gobsmacked at how much money I wasted on sites like Uber Eats, Amazon, Ebay and just stuff I purchased because I could   but nowadays, that money I myself consider wasted gets invested in other areas that could build a comfortable or at least a less stressful future for me financially. I view my cutbacks as short term sacrifices for long term gains - I don't go without, but choose more budget friendly options &  I no longer smoke, or drink alcohol which saves me 100's each month.

Thanks for taking the time to contribute to my thread, and have a blessed day.

That is a good choice if you don't want to take risks. Of course, as I said before, there is a very good chance that several altcoins will outperform bitcoin, but in that case you would need to buy several altcoins, some will do good, others don't, and at the end you also need to stay in top of many of them. I would buy some altcoins only when I actually have some extra money that I can, in a certain way, throw away without any consequence. Otherwise I just try to get more satoshis.

You seem to be doing well. Cash in the bank should be no more than 6 months of expenses for unforeseen arises.

Apart from that you can have sinking funds, for example if you plan to change your car or take a trip, save for that.

And then the rest to invest. Obviously in this part of the forum we are inclined to have it all in Bitcoin or most of it and forget about shitcoins. But another thing you can do is diversify out of the crypto market, for example by contributing £50 a week to a good index fund like the S&P 500. Anyway, you seem to be doing well.

It's a good thing you're doing dca in Bitcoin and ETH. It's sure that if you do it every week, your savings will grow a lot when the halving comes, and after the halving, it's a bull run for sure. Keep doing what you are doing. I hope I'm like you, who earns that amount.

But I hope you also see other cryptocurrencies that have potential, like ETH and Bitcoin, increase in the market and can also give you profit in the coming times, especially during the bull run.

Thanks!

I have considered taking advantage if the price is down by using my savings and reducing future purchases to put that money back in to my savings, but i just want to make sure it's not because of FOMO / or being greedy etc

Many investors and most people are considering the choice of Bitcoin or Ethereum in the cryptocurrency market today, as both are the best coins and also the largest in terms of Capitalists in the industry. And it is also a coin that attracts more attention and analysis than other cryptos.
Actually Bitcoin and Ethereum are the best options for you, but if you want to do DCA, Bitcoin will be better in terms of profits, especially in the long run and I also recommend that you use money that you can afford to lose. And the DCA strategy is perfect for those who use extra money because it is the best way to accumulate in the long term, and you can also increase your purchases when you have a lot of extra money especially when the price of Bitcoin is down.

That is something i'm certainly considering, but will build up my BTC for a couple of weeks I think before reducing the % slightly to accommodate the purchases of ETH. I just don't want to start purchasing other coins following the hype, as I did previously.

I stick to a budget sheet that I enter my incoming for each particular week with linked cells etc for Bills, food, essentials, treats and stuff like that and I make sure everything is covered and be generous with the figures. My old strat had 100% of whatever is left going directly to my bank savings, whereas now I use 70% of what's left over for BTC and the remaining 30% gets saved - but yes, I have made sure my life needs are met and have an amount saved where I feel comfortable and although if I lost it all overnight in BTC I would be disappointment It's money I have mentally detached myself from if that makes sense?

I have however made certain sacrifices / adjustments in that i've cut back on wasting money on purchases i don't really need and takeaways etc which now go into the pot for BTC.

If I were you, I would do 75-80% BTC and 20-25% ETH, more or less those are the percentages. I read that some people would buy only bitcoin, and I understand that, but you also need to consider that at the current values it's easier for ETH to do a 5x rather than for bitcoin. It's just an example but during a bull run many altcoins have a better return than bitcoin, of course oftentimes it's not easy to buy the right ones, but I wouldn't worry about ETH.

Hi thanks for your reply.

My BTC amount was my starting point having sold the alt coins (i started purchasing £30 amounts of XRP mostly and it built up to £370 across my holdings). I could have invested way more but due to the nature and how up and down the stats were i didn't want to risk my money - i work 50+ hrs each week and not exactly a baller so £300 is a lot of money for me as i guess for most people here.

It's not like I don't trust BTC or anything like that, but the reason I don't invest more is that i want to be able to have money available should anything happen in life where I need it and I want my BTC investment to remain untouched for the long term and will remain disciplined enough to not touch them.

I must say that being new here, my experience has been nothing but amazing so far, and I really appreciate the time you all have taken to reply to my thread and wish you all the best for your investments.

Good iuck with your own investments.

I think that's the situation because she never mentioned if anything about setting some fund for her expense till the arrival of the next salary which mean the 30% was her expense and other unforeseen situation till she receives another salary which is a pretty awesome idea. However, maintaining the strategy for the long term is always a drawback.

Ethereum is a perfect combination for bitcoin, but if you are still a beginner investor, always do the math and stick to bitcoin. Besides, bitcoin has higher potentials than ethereum, and with bitcoin halving that is getting near, it's more of a wise decision to invest all in with bitcoin, but still invest with caution. Always invest within your own risk.

Just invest in Ethereum later on if you have extra money the next time you purchase. Ethereum has also its good potentials, but it's undeniable that bitcoin has it more compared to the rest of altcoins.

That can be a good thing but is the 100 percent total money that is not used so you put it in bitcoin for 70 percent and the rest you save in fiat? because in this case, it is important to know the actual number 100 percent that you say in this case is the total salary or the remaining deduction from the needs you use.
If it is indeed 70 percent of salary (overall) I think it is too big if indeed the plan is DCA because after all we know we all have the necessities of life and you have to plan this for your daily needs but if in the end this is just the rest of the needs you have as well as some other needs such as unexpected needs and others that are already unused then that total does not mean 70 percent but a few percent of the money you set aside.