Topic: DCA (Dollar Cost Averaging) method is a simple way to invest in Bitcoin (Read 315 times)
January 13, 2024, 12:53:15 AM
Most of us know Dollar Cost Averaging (DCA) method to invest a fixed amount of money at regular intervals irrespective of the market price. I like this approach, the DCA approach will help reduce the impact of market volatility on your investments, as it reduces the risk of buying large when prices are high and buying small when prices are low. DCA is especially suitable for people who have fixed income and can invest a part of their income regularly. By consistently investing a certain amount of money in Bitcoin, you can take advantage of dollar-cost averaging and reduce your average cost per share over time and have the possibility of getting good profits from Bitcoin in the future.
January 12, 2024, 10:23:03 PM
That has always been my method for investing in Bitcoin. I don't have like huge amount of money to invest in Bitcoin all at once, so all I do is to take out a little percentage of my monthly income to invest. That way, I'm able to gather a lot of coins as time goes on. It's the best as it doesn't dry your pocket.
Even you have big capital, Dollar Cost Averaging is a good investment strategy for long term investors.In other words, DCA is a good strategy for both big and small investors and with your small income, small investment capital you can spend for bitcoin each month, DCA will serve you very well and will help your portfolio increases in total value.
After you DCA many times, have enough big capital and feel acceptable with withdrawal on centralize exchange, withdraw your bitcoin to your non custodial wallet.
Reminder: do not keep your money in online accounts.
January 12, 2024, 07:03:27 PM
That has always been my method for investing in Bitcoin. I don't have like huge amount of money to invest in Bitcoin all at once, so all I do is to take out a little percentage of my monthly income to invest. That way, I'm able to gather a lot of coins as time goes on. It's the best as it doesn't dry your pocket.
January 12, 2024, 05:53:57 PM
There are many members of this forum who do not know about DCA method of investing till now or even if they know they do not fully understand about DCA method of investing.
Investing in the DCA method is to invest consistently at different positions in the coin's price. There are usually several ways to invest in the DCA system. An investor can invest in hourly DCA method if he wants, he can invest in DCA method continuously every day or he can invest weekly or monthly continuously if he wants. Now the question is which one is perfect for you. Which one you take will depend on your income or money supply. If you are receiving weekly payments, you can invest a certain amount of money every day in the DCA method, so that every day the market changes and you will have your investment in different positions of value. If you find it difficult to invest in DCA method every day, you can follow this method weekly. You can invest weekly by multiplying the amount you used to invest daily. If you are not able to invest weekly, you can invest in DCA method consistently every month.
Since there are all kinds of options available, you can choose any method as per your wish and convenience in investing in DCA method.
DCA method is the best method for investing. There are many bitcoin users and bitcoin investors who cannot invest a lot of money at once but I think DCA method is the best method for all those investors and users. I myself am investing weekly using DCA method. If I don't use the DCA method I will never be able to invest. Because I have to spend more than half to support my family. As there is DCA method I am investing some money from weekly earnings using DCA method. Investing using the DCA approach must be aimed at the long term. Investing in the DCA method is to invest consistently at different positions in the coin's price. There are usually several ways to invest in the DCA system. An investor can invest in hourly DCA method if he wants, he can invest in DCA method continuously every day or he can invest weekly or monthly continuously if he wants. Now the question is which one is perfect for you. Which one you take will depend on your income or money supply. If you are receiving weekly payments, you can invest a certain amount of money every day in the DCA method, so that every day the market changes and you will have your investment in different positions of value. If you find it difficult to invest in DCA method every day, you can follow this method weekly. You can invest weekly by multiplying the amount you used to invest daily. If you are not able to invest weekly, you can invest in DCA method consistently every month.
Since there are all kinds of options available, you can choose any method as per your wish and convenience in investing in DCA method.
January 12, 2024, 05:39:09 PM
Make it more simple. You may buy in every dip you find; this would be the perfect DCA strategy. The explanation would be different for each person about DCA strategy, and we may debate it. But I feel my point is the actual DCA strategy from my position. Also, you may buy from your monthly savings, but it is better to wait for a dip. So it is more likely that you will get Bitcoin cheaper. I believe forum users aren't familiar with DCA. But they are familiar with the strategy. For example, at the beginning, I wasn't familiar with the DCA word, but I followed it to accumulate on every dip.
January 12, 2024, 05:13:30 PM
Might be not a good approach since how could they accumulate every hour or day if they can't understand what they are doing? For sure newbie will get struggle to determine if they are still doing good and if they do that maybe they caught up on wrong expectation then maybe they loss their money because they didn't calculate well the risk for doing it. Maybe a proper market observation should be done first so that they can get an idea on how to do good decision for executing this also they would provably know how can settle up something on their side once they want to do this DCA method.
This is perfect strat to be done but it needs proper experience so that it works well with people who want to use and want to earn success on their trades.
Even though DCA is the best method to invest in Bitcoin or any other cryptocurrency I would not advise people to invest daily because if the person income I not sufficient to invest daily then it would affect the person in some days that he might not have or not sufficient in those days. Then it is good to invest either weekly or monthly so that the person can also plan to do other things. Because DCA is the best method to invest so we should empty out pockets every day, that is can't happen and it is not a good plan of investment.This is perfect strat to be done but it needs proper experience so that it works well with people who want to use and want to earn success on their trades.
A responsible investor knows when to invest and what to do. He is not greedy and always be careful of what to do. And those who are greedy invest anyhow and end of losing all to the bear market and cry at the end.
January 12, 2024, 08:39:07 AM
There is no doubt that DCA method is beneficial but its a matter of money, if a person possess money then he can use DCA method to buy bitcoin on daily basis but if he does not have income then I think he will buy at least at one position at a single moment.
I think that a person should buy according to DCA method for four years of duration then sell all bitcoin during halving because that is the timing when there is a surge in price and one hardly find money to buy bitcoin that time like the situations in present.
Another point to be noted here is that a person first cannot buy bitcoin based on hour because there is higher fees required and also a person does not have enough amount to invest based on every hour but still it depends on a person financial system that how he can afford to invest amount according to the market price.
I think that a person should buy according to DCA method for four years of duration then sell all bitcoin during halving because that is the timing when there is a surge in price and one hardly find money to buy bitcoin that time like the situations in present.
Another point to be noted here is that a person first cannot buy bitcoin based on hour because there is higher fees required and also a person does not have enough amount to invest based on every hour but still it depends on a person financial system that how he can afford to invest amount according to the market price.
January 12, 2024, 07:22:37 AM
~~~
Investing in hourly DCA method and if 1 dollar is invested every hour then the investment amount of an investor is 24 dollars every day. 24 dollars for one day is fine but when an investor invests 24 dollars every day for 1 consecutive month, but at the end of one month his investment amount will be like 720 dollars. Are you for real... Do you even know what you're talking about? Buying 1$ dollar worth of Bitcoin every hour and $24 dollars each day... Which exchange are you going to buy bitcoin at 1$, most exchanges accept trades of $10 and above. Let's assume a buy order of 1$ was even possible, did you take into consideration the cost to withdraw from exchange? Would you pay $10 - $15 in fees to transfer $1 worth of Bitcoin to your personal wallet?
January 12, 2024, 05:55:40 AM
There are many members of this forum who do not know about DCA method of investing till now or even if they know they do not fully understand about DCA method of investing.
Investing in the DCA method is to invest consistently at different positions in the coin's price. There are usually several ways to invest in the DCA system. An investor can invest in hourly DCA method if he wants, he can invest in DCA method continuously every day or he can invest weekly or monthly continuously if he wants. Now the question is which one is perfect for you. Which one you take will depend on your income or money supply. If you are receiving weekly payments, you can invest a certain amount of money every day in the DCA method, so that every day the market changes and you will have your investment in different positions of value. If you find it difficult to invest in DCA method every day, you can follow this method weekly. You can invest weekly by multiplying the amount you used to invest daily. If you are not able to invest weekly, you can invest in DCA method consistently every month.
Since there are all kinds of options available, you can choose any method as per your wish and convenience in investing in DCA method.
Due to high cost of transactions I think it's much better to DCA monthly for those who earn weekly and weekly for those who earn daily that way you will be able to save some cost on transactions, those who earn weekly can aswell DCA twice a month it's also a fair practice but daily DCA can be less cost effective and the fees alone could have accumulated to be good enough to have added to the hodling. DCA is one of the best way to accumulating good units of Bitcoin especially if you are not able to afford it all at once but with DCA, you will be able to get it done over a period of time and still have some good money left with you to fix up other things.Investing in the DCA method is to invest consistently at different positions in the coin's price. There are usually several ways to invest in the DCA system. An investor can invest in hourly DCA method if he wants, he can invest in DCA method continuously every day or he can invest weekly or monthly continuously if he wants. Now the question is which one is perfect for you. Which one you take will depend on your income or money supply. If you are receiving weekly payments, you can invest a certain amount of money every day in the DCA method, so that every day the market changes and you will have your investment in different positions of value. If you find it difficult to invest in DCA method every day, you can follow this method weekly. You can invest weekly by multiplying the amount you used to invest daily. If you are not able to invest weekly, you can invest in DCA method consistently every month.
Since there are all kinds of options available, you can choose any method as per your wish and convenience in investing in DCA method.
For convenience DCA is one of the best way to accumulating Bitcoin as compared to other ways which are obtainable on exchanges and P2P or rewards and payments for jobs.
January 11, 2024, 07:55:41 PM
If you find it difficult to invest in DCA method every day, you can follow this method weekly. You can invest weekly by multiplying the amount you used to invest daily. If you are not able to invest weekly, you can invest in DCA method consistently every month.
Since there are all kinds of options available, you can choose any method as per your wish and convenience in investing in DCA method.
But even so, never forget, when doing DCA you have to use money that is ready to be lost or money that really won't be used for a long time. Because if it's not like that, I'm afraid the DCA won't run well. Because after all, capital is an important key in an investment, including Bitcoin. For this reason, even though DCA is indeed a good technique to use when investing in bitcoin. But if the capital is hot money, I'm sure the DCA will not run smoothly.
January 11, 2024, 07:11:04 PM
Since I have been around this forum, I have learned that DCA is the most convenient way of investing in Bitcoin or maybe another investment because it allows you to take care of other responsibilities while at the same time letting you invest your money. And from my little knowledge, it's good to do DCA weekly if you earn or can afford it, or you could just do DCA monthly as a salary earner, but I haven't, in this maybe long or short time here, heard of hourly investment.
BTW, is there any job that pays you hourly? I mean, every hour while you are working, you are being paid. Let's say $100 every hour is entering your account. not the ones that are scaled for hourly payment but later paid at the end of the day? Is there anything of the sort? probably No. So how did you come about hourly investment?. Even the weekly investment isn't convenient for most people because they work for salaries.
I might be wrong, though location or my perspective of understanding could be the reason why I haven't heard of hourly investment, but from now on I have read of it.
BTW, is there any job that pays you hourly? I mean, every hour while you are working, you are being paid. Let's say $100 every hour is entering your account. not the ones that are scaled for hourly payment but later paid at the end of the day? Is there anything of the sort? probably No. So how did you come about hourly investment?. Even the weekly investment isn't convenient for most people because they work for salaries.
I might be wrong, though location or my perspective of understanding could be the reason why I haven't heard of hourly investment, but from now on I have read of it.
January 11, 2024, 06:59:50 PM
Certainly yes. DCA is not just the easiest and simplest, but the safest option as well so you can avoid one time losing or losing a huge amount when you intend to sell at a wrong timing. So if you are planning to invest in bitcoin but worry because of having only small capital, then you are wrong with that. Bitcoin is only expensive if you chose to buy a whole portion of it.
However, if you invest using DCA, even the smallest amount that you can afford to lose is good enough. Either if you do it weekly, bi monthly or monthly, that’s up to you as long as you only spend a portion of your income that you are comfortable of losing.
However, if you invest using DCA, even the smallest amount that you can afford to lose is good enough. Either if you do it weekly, bi monthly or monthly, that’s up to you as long as you only spend a portion of your income that you are comfortable of losing.
January 11, 2024, 05:57:34 PM
I would say DCA is the safest option to accumulate bitcoin without compromising yourself to spend a big amount just to own bitcoin. With DCA, buying even with a small amount is still possible and once you do it consistently, your bitcoin will be compounded and will eventually become a huge amount of investment. That’s the reason why even poor individuals can start to invest in bitcoin, because bitcoin investment is not actually expensive, it’s indeed affordable. It only gets highly valuable and expensive the moment you decide to buy the whole bitcoin.
January 11, 2024, 05:52:30 PM
I don't think the daily approach is good for a beginner because as a beginner he is still struggling to understand how the market is.so I will recommend weekly plan for the person. But if the person is an experience person, then he can do the daily plan but that should be base on the income flow of the person. But even at that I still prefer the weekly plan because there are other expenses to do in the family.
We should not do something would hook us up in throat. DCA is the best way to invest in Bitcoin but must be consistent and have a constant income to do that.
We should not do something would hook us up in throat. DCA is the best way to invest in Bitcoin but must be consistent and have a constant income to do that.
Might be not a good approach since how could they accumulate every hour or day if they can't understand what they are doing? For sure newbie will get struggle to determine if they are still doing good and if they do that maybe they caught up on wrong expectation then maybe they loss their money because they didn't calculate well the risk for doing it. Maybe a proper market observation should be done first so that they can get an idea on how to do good decision for executing this also they would provably know how can settle up something on their side once they want to do this DCA method.
This is perfect strat to be done but it needs proper experience so that it works well with people who want to use and want to earn success on their trades.
January 11, 2024, 05:38:34 PM
Most of the members that don't know DCA from this forum are the newbies, the rest have already an idea about it but not sure if they're doing it.
Because it's whenever we're comfortable to buy, we buy. But if you look forward with a goal of having this xx amount of Bitcoin then you'd definitely going to DCA.
Weekly or monthly for me is the best, that is for me and I don't know if there's an hour guy that does it based on your example but it's just about the point and idea.
Because it's whenever we're comfortable to buy, we buy. But if you look forward with a goal of having this xx amount of Bitcoin then you'd definitely going to DCA.
Weekly or monthly for me is the best, that is for me and I don't know if there's an hour guy that does it based on your example but it's just about the point and idea.
January 11, 2024, 05:13:50 PM
~~~
Investing in hourly DCA method and if 1 dollar is invested every hour then the investment amount of an investor is 24 dollars every day. 24 dollars for one day is fine but when an investor invests 24 dollars every day for 1 consecutive month, but at the end of one month his investment amount will be like 720 dollars. Are you for real... Do you even know what you're talking about? Buying 1$ dollar worth of Bitcoin every hour and $24 dollars each day... Which exchange are you going to buy bitcoin at 1$, most exchanges accept trades of $10 and above. Let's assume a buy order of 1$ was even possible, did you take into consideration the cost to withdraw from exchange? Would you pay $10 - $15 in fees to transfer $1 worth of Bitcoin to your personal wallet?
January 11, 2024, 02:51:53 PM
I don't think the daily approach is good for a beginner because as a beginner he is still struggling to understand how the market is.so I will recommend weekly plan for the person. But if the person is an experience person, then he can do the daily plan but that should be base on the income flow of the person. But even at that I still prefer the weekly plan because there are other expenses to do in the family.
We should not do something would hook us up in throat. DCA is the best way to invest in Bitcoin but must be consistent and have a constant income to do that.
We should not do something would hook us up in throat. DCA is the best way to invest in Bitcoin but must be consistent and have a constant income to do that.
January 11, 2024, 02:29:38 PM
For me, the simplest way to invest in bitcoin is how you can buy it and keep it until it makes a profit for you. Because no one has the ability to have capital or knowledge about this field, and the method is just a way to ensure capital and grow profits. I also agree that DCA is a good process to find a stable balance between both risk/return, but before that, instead of emphasizing financial factors, the decisive factor is still knowledge and practical experience.
Because I cannot go back to the past to tell myself not to sell bitcoin, but instead in the present and the future I am aware of the opportunity in this space to balance the factors surrounding life. And in fact, without previous experience, I would have been skeptical like many new participants and hoped for easy profits.
Because I cannot go back to the past to tell myself not to sell bitcoin, but instead in the present and the future I am aware of the opportunity in this space to balance the factors surrounding life. And in fact, without previous experience, I would have been skeptical like many new participants and hoped for easy profits.
January 11, 2024, 01:24:42 PM
Honestly, I never knew hourly DCA existed until now. I understand that it might not involve buying every hour but I don't really fancy it. Daily DCA is good especially when you're a trader and when you're making profit on a daily basis. Weekly or Monthly DCA is perfect for me, you don't really have to put yourself on unnecessary pressure to buy and stack. I think the size of your pocket and how frequent you've funds coming in will determine what method is best suited for you.
Investing in hourly DCA method and if 1 dollar is invested every hour then the investment amount of an investor is 24 dollars every day. 24 dollars for one day is fine but when an investor invests 24 dollars every day for 1 consecutive month, but at the end of one month his investment amount will be like 720 dollars. Usually those who invest in DCA method depend on their income and it will be very difficult for a person to invest $720 every month irrespective of his income. There is nothing to be so professional about investment, I will invest as much as I can myself, there is no need to invest even if I see others. I see others have invested a lot of money for a few days but after a few days I don't have money to invest but this investment will never be fulfilled so I should invest the amount of money that I can invest and keep it consistent. . January 11, 2024, 12:38:40 PM
It also works great for lump sums, as well. I.E. not just dumping a grand into BTC, but say in chunks of 100 at a time across various dates/prices, etc.
Whether it's chunking lump sums - or just regularly scheduled amounts - this has only worked positively in my favor, in my experience.
Whether it's chunking lump sums - or just regularly scheduled amounts - this has only worked positively in my favor, in my experience.
Jump to: