Topic: Buy the DIP, and HODL! - page 108. (Read 130077 times)

Binance has lost a lot of its banking relations, yet if the exchange has a banking relationship with your bank, then you would ONLY have to make sure that you have a sufficient amount of money in your linked bank account, since the DCA would come from that linked bank account... but yeah, otherwise you would be correct that you would have to have enough of the asset/currency that you are trading from to the asset that you are trading to (presumably bitcoin) in order for the automatic DCA to execute within your requested parameters.

In my opinion, if you apply DCA through the exchange, of course you can set the time for each stage of the purchase. But so far I have been more practical by doing it manually or with my planning without going through the exchange. So there is no significant difference between doing it manually or through the exchange, especially for now, don't trust the third party for your assets, so I prefer to do it manually where I buy on the exchange and withdraw to a personal wallet.

Well, one more thing, it seems that if you are interested in automatic DCA, you must first deposit money into the exchange and at the purchase maturity, your balance will be automatically deducted. That's a little bit of what I know and if you want to dig up more information, you can read the rules imposed by the exchange where you want to do automatic DCA.
Apart from that, it all comes back to the comfort of the investment you are making because if so far you are more comfortable with manual DCA, then just continue.

I am pretty sure that most major exchanges have such an option to employ some kind of an automatic DCA.  Below is a screen shot from BinanceUS's description of various automatic buy options... From the drop down menu, you can choose to buy one time (which is not automatic, it is right away) or you can set up automatic buy parameters within one of the four options that are available through their system.



It is likely that Binance (not BinanceUS) has some similar options, and some of the exchanges will allow the client to customize their automatic DCA more than others, yet I still have not found an exchange or service that allows the customer to select the hour of the day that his automatic buy is executed, so that is part of my objection to all of the automated DCAs getting executed around the same time or maybe just the lack of transparency regarding when they are actually executed.. but you can see that Binance's automatic DCA is pretty strict (or limited) in terms of when/how you can employ automatic DCA, which is daily or the various other increments that they show which amount to Binance's likely executing the DCAs in somewhat non-transparent ways on about a daily basis for their varying customers with differing automatic DCA preferences...and surely some people don't really care about those kinds of details that might ONLY end up affecting their buy orders by a percentage point or even less.. which is part of the reason that I would just prefer to manually execute my own, in the times  that I am inclined to do it... but for some folks it is surely not any big deal as long as they get their buys in at the period that they had specified the exchange to execute their automated DCA buy orders.


For sure, if you build a strong foundation, or start out with good basics, then there tend to be a lot of things that we can learn along the way in regards to how we employ our practices and perhaps some other options that might be available, and surely we also know that some information is better than others, so some folks get caught up in some areas of learning that might not be so helpful, yet still we sometimes need to explore and experiment in order for our learning to become more concrete (or for our learning to make more sense in terms of our own understanding and/or our abilities to share with others).

I have found that some of my participation in the forum has helped me to explain more clearly some of my ideas to real life people, yet still even if we are talking with real life people, there are going to be things that the bring up that we might not know how to respond or we might not know enough, so those kinds of interactions can sometimes stimulate us into doing more research, to the extent that we even have time to engage in such research (of if doing the research is worth it).

Thanks for the clarification sir JayJuanGee and the correction also . We literally learn each day , well I think I will continue with my manual DCAing for now , but I will still like to know more about the automatic DCAing and how it works, so that I can also teach it to others . Because in this space if one want to improve themselves he or she have to learn each day . And especially when it comes to bitcoin is always fun to learn things related to it .

Well I'm going to also do my own research concerning automatic DCAing, to get a clearer picture and to understand it more better once again thanks for the brief explanation concerning it .

I disagree with you mate and you have a very wrong conception of the DCA strategy and it can be very misleading, the DCA strategy allows investors to make purchases of Bitcoin irrespective of the market conditions, you buy Bitcoin wether in declining or not, purchase are made on different intervals either weekly or monthly based on your income flow as much comfortable you can be. The DCA strategy has nothing to do with waiting or timing the market conditions, you buy Bitcoin any time so far your money is readily available for investment.

 Investors use the DCA technique in a declining market situation and this is a very common technique used by every investor, they certainly save in a declining situation and continue to buy and choose to survive and wait for the right time and their strong predictions of the success they will get later.

Even though we are mostly talking about investing in this thread rather than trading, the two of you don't seem to be saying anything much different when it comes to adapting along the way in terms of various investment practices, so in regards to BTC accumulation there would be strategies regarding DCA, lump sum and/or buying the dip that might be considered.  Of course, there are cashflow management practices regarding understanding the investment from discretionary income and having an awareness and practice of back up funds too.

In essence, the longer that we might be investing into bitcoin, the more that we should be able to hone our bitcoin accumulation strategy and then perhaps later our bitcoin maintenance strategy to our own particular circumstances as our circumstances inevitably should be changing along the way.  I would think that many times our changes in our practices would only be to tweak here and there along the way, yet sometimes we might have to make larger kinds of changes to whatever we are doing. 

We could look at any of our 9 particular individual circumstances and recognize that they are always changing, but maybe our BTC accumulation strategy does not change every time that we have some kind of a small change in the 9 factors unless we might consider some kind of tweak might need to occur or maybe a more major revision needs to be employed if several of the factors might change at any given time.

That's really scary especially if you put all your money in bitcoin and nothing left in your position. Since every dip would provably give you stress, so to avoid experiencing this scenario much really better to spend some amount which is aligned with your budget and also make sure to have emergency funds since this  could really save us for any unwanted or unexpected scenario that will happen in our investment. There are times that everything is not smooth as we expect that's why its good to have funds that we can use so if everything is really in bad shape we can recover since we are prepare for this scenario to happen.

Lots of people really hook up with bitcoins potential but they should not be greedy and put everything they have. But rather much better for them to increase up their knowledge and make sure that they are always updated with current news about bitcoin since this is really helpful for their investment on bitcoin.

What you said is quite true because some people who want to invest in Bitcoin for the long term are still not aware that they also have to have a reserve fund in their lives so as not to interfere with the amount of investment that already exists in the form of Bitcoin. I hope everyone can understand this so that they can continue to be enthusiastic in buying Bitcoin and investing it in the long term without remembering to sell in the near future for any reason. Because we can all see that there are many investors who have felt happy after holding Bitcoin for a long time without being affected by the burdens of their own lives.

The only thing that can make someone go into different strategy is when they have multiple sources of income because we cannot suggest for someone who is barely managing to sticked on there DCA accumulation to consider adding more other strategies into there investment patterns because they would be over pressed with the load of maintaining those strategies, though having or adding more strategies is not wrong if you are financially capable but for those who are less privileged should continue with DCA instead of thinking about how they can get more Bitcoin when they don't have the financial strength.

The 🇸🇻 Salvadoran government has been buying 1 #Bitcoin per day since March 16, accumulating 160 BTC (💵 $10.31M).
Source Link
They now hold 5,850 BTC ($355.83M) with an average cost of $44,835 and a profit of $93.45M 👀🙌

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El Salvador is the most attractive to Bitcoin because they are constantly buying Bitcoins. Because since 2021, they have started buying bitcoin from the price of 69 thousand dollar bitcoin, and have been steadfast in buying bitcoin until now. They ended up buying $60k worth of bitcoins, and their average bitcoin purchase came to $44,835. But this is the biggest proof of the benefits of investing in bitcoins following the DCA method. Because if you follow the method regularly then surely you will be impressed by the success of the country of El Salvador.
Here: https://bitcointalksearch.org/topic/m.64458220

Of course you can see here how to succeed in DCA method you can get education only from the President of El Salvador Nayib Bukele and this is the biggest proof. Maybe because he has more money he holds more and more bitcoins in DCA method, but because we have less money we will hold small amount in regular DCA method so of course we will have average price control on buying bitcoins. This is our single greatest strategy to hold bitcoins in a simple way and proven from here.

For a brand new investor that wants to start his bitcoin journey and hodli for long, DCA is the best for him because it is a consistent buying approach which you buy every week with part of your discretionary income to enable you keep building and growing your bitcoin portfolio without stopping because you are piling it up. The newbie will regret it only if he is not consistent with it, also if the new investor gets extra cash that he never planned for like bonus from work or cash as birthday gift, he can lump sum immediately to help increase his bitcoin portfolio.

There are stages in your bitcoin accumulation journey that you need to tweak from one strategy to the other and no just depending only on one strategy. For instance, investors that have accumulated a good size of bitcoin but have not reached their bitcoin target can wait for the dip to buy bitcoin at discount so that he will add a significant amount of bitcoin to his portfolio and might not DCA anymore.

You are wrong; even if you are accumulating bitcoin with a lump sum strategy or accumulating through buying the bitcoin dip, there's no fear in investing our money in bitcoin because there's no fine or punishment placed on anyone who invests his money in bitcoin. The only time there will be fear in bitcoin investment is when you invest your whole money in it or when you invest in bitcoin without keeping an emergency fund, reserve fund, and float because, if there's an unforeseen problem, you will depend on your bitcoin investment to sort it out.

The decision to invest with Bitcoin has certainly been justified in terms of returns to each investor's capital that we have seen in the past and I expect it to justify more returns in the future. I would suggest you to withdraw yourself from short term bitcoin trading strategy as it is relatively nerve wracking strategy. The effects of trading can cause disruptions in your normal activities that are unexpected as a human.
On the contrary you can start depositing bitcoins with DCA strategy which is a simple process and disposable income every week or every month. Also the Single Add strategy is very important during bearish times which allows more bitcoins to be accumulated in a short period of time while the DCA method is running.

You are wrong, if you ask legendary members or anyone who has been into Bitcoin for years they will tell you they have at one point in time changed the strategy they were using to another one, as someone involved in a long term Bitcoin investment and you changed your strategy of accumulation and still maintain holding for a long term, how those it make you a trader.
So you are saying since I'm using DCA in my Accumulation and as time goes on i see a better strategy i shouldn't go over to that strategy please let's all be realistic.
There are people who were using different strategy in there accumulation but when they joined this forum they saw a better strategy suggestion that will suit them even more and they started using it and there are also people who has been in this forum for long and at a time the saw an idea of a better strategy and they took it because it will be more comfortable for them and yield more Bitcoin for them.
Changing of Bitcoin accumulation strategy to a more suitable and comfortable strategy one that will yield you more Bitcoin is not a bad idea or move.

Below are/is what I think makes an investor swing to another strategy

Lets say an investors is into buying lump sum because of the work he does and then suddenly the work stopped paying the initial amount they always pay or maybe the company fold this can make an investor to change his investment plan and on the other hand if an investor is using the DCA method because of the money he received weekly or monthly as the case maybe and then fortunately he got a new job that the weekly or monthly payment is huge this can cause an investor to change his strategy or make him double up the amount he always use to DCA.

However, any strategy can be profitable in Bitcoin investment provided you are doing the right thing at the right time and changing of strategy is more like trading stuff because a trader always rotate on strategy, if a particular strategy doesn't work for them they change immediately just to make sure the market moves in favor of them ( their trade).

Yeah you are right, however sometimes what makes you comfortable or what suits you may not be good for you and that is why we are all gathered here and talking about Bitcoin, you may be using a strategy that you are so comfortable with but at the long run you are not doing better in your accumulation so when you see a new idea on how to do better in your accumulation journey you go with it and you must not be comfortable with it.
If you allow everyone to do what they are very much comfortable with that means a lot of offices will be locked, Bitcoin journey will take you a long time especially those who are holding for a long term so you need to engage in a strategy that will yield good result and not the one that will give you sweet rest with bad result.
I'm not saying we should not use a strategy that will suit us or we will be comfortable with, I'm saying if you see that the suitable strategy is not yielding good result dump it and go for the next.

Some exchanges allow the setting up of automatic DCAing.  You can choose an amount and a frequency, perhaps daily, weekly or some other inverval - exchanges will vary in t how an automated DCA could be set up and part of the reason that I don't like them is that they usually cannot be set up for a very specific time, but instead at the the most daily, so the exchange will likely batch all of the DCA's at the same time and might even play shenanigans with the DCAs, though maybe some of the exchanges have improved their systems.  If you are going to use an exchange to automatically DCA, I would look into how they describe their way of executing the automatic DCAs.

Manual DCA is that you do your own buy, and surely you can even set your buy up as a market taker limited order rather than having your order be a market maker.  Market takers have lower fees than market makers, and of course, people are going to have differing rates and differing options depending on their geographical location and which exchanges are available to them.

Regarding your statement:  "it really picks my interest."   I am pretty sure you meant to say:  "it really piques my interest"


Fair enough..   Let's say that you were brand new to bitcoin, and you had $10k in the bank that you had authorized yourself to buy bitcoin.  You could invest all of that $10k right away or within a few quick payments over a week or so, and I would consider that to mostly be lump sum.

You could also decide to divide the $10k into three parts. $6k to buy right away (that would be lump sum)  $2,500 for buying on dips - let's say 10 Buy orders of $250 every $1k that the price goes down starting at $62,500-ish... so that would be having buy orders down to about $53,500 if there were really 10 buy orders with $1k increments and also that you would realize that whenever you set up buy on dip buy orders, you run the risk of some or all of them not filling, so that could result in your having that extra fiat that could have had been used to buy BTC but it did not end up getting deployed.  In regards to DCA, you could allocate the remaining $1,500 for DCAing.. maybe $100 per week for the next 15 weeks. (on Saturdays in the mornings (around 9am) to be manually executed..and perhaps with some variance in the time or the way it might be executed).  

Of course, besides that $10k of starting capital, you might also have a regular DCA that you are planning to carry out for the next 1 to 4 years (perhaps on a weekly basis), and you also might have some regular buying on dips that you have planned too, but those regular DCAs and buying on dips would be planned to come out of your regular income, whether you are able to buy $100 per week with the DCAs and/or perhaps a similar amount with the buying on dips or some other amount that is within the decided amount of your anticipated discretionary income that you want to allocate towards buying bitcoin on a weekly basis and also perhaps for buying dips, too.   

You also might know that with your job, 2-3 times per year you receive a bonus of somewhere between $2k and $4k depending on the performance of your company for that period of time, but you don't know exactly when those bonuses are going to come or if they are going to come, so you don't plan your specific finances based on the bonuses, yet now that you are getting into bitcoin, and you believe that you are serious about BTC accumulation, you decide that you are going to use between 60% to 80% of any bonuses that you receive to buy bitcoin.. so each time when you get the bonuses, you are going to decide the extent to which you will buy right away with the bitcoin allocated portion or if you might employ DCA and/or buying on dip with some portion of the amount that you will have available to you.  With regard to the bonuses, the part you buy right away, I would call that lump sum, even though you might choose ONLY a small amount (or a minority) of the total amount to buy right away.. You use your discretion regarding how to divide each of the categories and how to execute the BTC buys that would result from those anticipated bonus amounts.

When you said manually, can you please give some clarification. Because base on how I understand this reply, having a fixed time to purchase like weekly or monthly is a form of automatic DCAing? Just wanna know the different between manual DCAing and automatic DCAing, it really picks my interest.



Base on my understanding, I will say lump sum is the opposite of DCAing strategy or method. Because it literally deals with one going in at once , without breaking the payment down . Like for instance I have $10k , and I want to invest on bitcoin, I can decide to break it down into 10 places which will be $200 each , and I will have a fixed time to make my purchases ( with the $200) either weekly or monthly, buying at different price interval. Or can use lump sum method by using all the $10k at once to purchase bitcoin without any form of breaking in a fixed time

The example of the person who ONLY buys when it is convenient and/or only when he figures out his budget is still doing DCA, even if the time and the amount vary.

Even though I agree with you that DCA might not work for everyone, you have not given an example of lump sum, and you have largely given an example of DCA because you are suggesting that the only reason that the guy had not executed his DCA is because he was busy with other things... yet you are suggesting that he still is interested in buying BTC, he just is busy with other things.
I would suggest that a non-DCA approach might be a guy who is not really very seriously thinking about BTC.. so sometimes he thinks about buying BTC and other times he doesn't, so he is erratic based on his own lack of conviction about BTC..

Substantively, it may not really matter so much what we call it, and so each of us have to consider how persistent we are in regards to investing into bitcoin, and surely people have a lot of things going on in life, so some of those people might set up an automatic DCA in order to make sure that they continue to buy BTC, so that kind of person might be more serious about BTC rather than a person who does not set up such automatic buys and does not even force himself to buy every week, even though personally I like the idea of automatically executing DCAs, on a practical basis, it can be better for some folks to have their DCA buys (weekly or whatever) to be executed automatically.

Maybe a non-DCA person would be someone who lacks focus in terms of his buying of BTC, and so his buying schedule is really erratic.. .. and erratic based on his own occupation with other things and his not giving the buying of BTC a very high priority (and his failure/refusal to set up automatic DCA), so that kind of a case, every once in a while the guy comes back to BTC and decides to buy some more.. That might be a non-DCA kind of an approach to buying BTC, even though maybe it sounds like a bit of a strange example since it may or may not be DCA depending on if there is any kind of an attempt at consistently buying BTC, and maybe that was the kind of an example that you (adultcrypto) were trying to describe as a non-DCA approach? .. but I would not call it lump sum unless there were different kind of facts, such a some kind of extra cashflow or even some initial considerations about how to buy bitcoin and whether to buy right away or to execute some kind of purposeful deferal based on time (DCA) or based on price (buy on dip).