Topic: DCA (Dollar Cost Averaging) method is a simple way to invest in Bitcoin - page 2. (Read 315 times)

The DCA method I always prefer is for investment risk management in long-term holdings. But in this case I am not much interested in hourly or daily investment. Because I think where you are holding your funds with the DCA method is very important, especially since I have seen many people who have long term strategies invest daily or weekly in a centralized exchange. And I think holding funds for the long term in a centralized exchange is foolishness. And most users hold their funds in a centralized exchanger to avoid transaction costs.
Although I use it myself in some cases especially when the transaction fee is high I buy btc on cex and wait for the withdrawal fee to drop later.Also I think it is better to use monthly strategy while using DCA method.

It's merely personal preference. Some people like to save fiat and wait for the DIP and better opportunities, while other people feel more comfortable in weekly/monthly DCA. But whatever strategy you decide to use, as plebs, we should avoid FOMO/buying in excitement during a surge. It happens a lot when Bitcoin moves fast after buying high. Instead of actually HODLing, if the price suddenly goes down, many plebs sell with a small loss then FOMO back in again at a higher price during another surge.

¯\_(ツ)_/¯

I haven't heard of hourly DCA method and I don't see it as a good way to mange and invest in bitcoin using DCA method. This is because bitcoin price doesn't change constantly in every one hour as the price do remain the same all day and if there will be a change in price it will be very little. Also the time and stress to buy bitcoin hourly is not ideal.

Newbies that want to invest in bitcoin using DCA method should buy bitcoin weekly or monthly because this is when it will be possible for you to buy bitcoin in various prices. Anyone using DCA approach should have his emergency funds available and also ha e funds to take care of other needs so that you don't go and sell your investment when you are faced with some challenges.

The reason why I see the DCA approach superior is because it gives room for the poor with low income to increase their bitcoin portfolio with timeline. Instead of hourly or daily DCA, it is better to pile up the money and buy once weekly to avoid distraction and so that you can have time for other investments.

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.

DCA method is best applicable when you’ve a continuous and nonstop stream of income. DCA method is meant to provide you with insight about the market price and how not to lose buying at a lower price when the market is extremely volatile. You can also use DCA method even when your source of income is not continuous but you won’t achieve a lot of savings as the person that invest timely as he gets the money for investment. I will call the second method more like a lump sum even though they don’t posses the same characteristics entirely. DCA has shown to be the best form of investment, good for beginners and also big investors, it is also good for the low income and high income earners looking to invest in bitcoin.

Yes, of course, until now there are still people who don't know about purchasing bitcoin with the DCA system. and honestly this is a good topic, hopefully beginners who don't know about the DCA system will know about the DCA system and I think this DCA system has many benefits, especially for those who want to invest in BTC for the long term because in my personal opinion, short term investment in BTC will it's better to use other methods, such as Averagedown which means only buying BTC when the price goes down. But of course there are various ways to invest in BTC, but the DCA system is very popular, in my opinion when buying BTC it certainly depends on our wishes, whether we want it once a week or something else. but what is clear is that money that is ready to be lost must be put into bitcoin because of course BTC price movements are very difficult to predict. because if you don't invest in BTC using money that is ready to be lost, it has the potential to cause mental discomfort, of course sometimes it will cause panic when the price of BTC falls. but what is certain is that the dca system also has advantages and disadvantages, so in this case we have to be really careful and have to be full of calculations before buying BTC and of course knowledge and insight must also be prioritized.

DCA is a direct and simple investment method, but it is not the best, as increasing fees will force you to search for a better way to invest in Bitcoin. Also, the return from DCA does not necessarily mean the highest, but rather it is an acceptable return compared to random investment or using more complex methods. It's the first step for beginners but over time you should learn beyond DCA.

I agree with you that DCA works very well to invest in Bitcoin but it is not mandatory to profit from Bitcoin. What is imperative is to have a long-term hold mindset. Because not everyone has the patience to hold for a long time. There is no requirement of a fixed time holding to get a good quality profit from Bitcoin or other cryptocurrencies. If you want to make a good amount of profit you have to hold for an indefinite period of time and can't lose patience then you will get a good experience from Bitcoin.

We've been noticing Bitcoin's extra transaction fees for a while now. It is very expensive for an investor but if that investor uses an exchange wallet but investing daily bitcoins will not be expensive for him. He will not need to transfer bitcoins through the exchange wallet, he will only buy and hold bitcoins. If an investor invests continuously but if his continuous investment is done through mobile wallet then it will be very expensive. An investor can invest daily with that amount of money that he has the ability to invest weekly or monthly. If he can afford to invest $100 a week, he can invest four dollars every day if he wants. DCA has simplified the investment process so much that an investor can invest very easily.

DCA is great. You don't need to worry too much, I'm trying to find the best moment to buy BTC every month, but even if it dips after that - I know that it will recover. The only time when I was investing like madman was when BTC was below $20,000 last year. That was a good time.

DCAing is about automated buying, no matter the price(even during ATH season).... completely bad.
because if you are DCA'ing on the ATH then you are maximising the risks, which take a long time for their recovery. thats why people need to vary their DCA pattern based on the markets 4 year cycle, to mitigate the risks of plain DCA by avoiding buying during the high seasons and instead putting that unbought extra funds in during the post ATH corrections


the influencers that want other fools to even buy during ATH season are the influencers wanting fools to buy so the influencers have buyers to sell to at a premium.. in short they want idiots to buy at premiums when said influencers will be selling to the premium paying fools

always remember buy low sell high

Totally agree, I have a friend that's strictly doing that during this time and so far, he's treated us and some of our buddies to beer and barbecue a lot of times already just this month because he's got this insane profits out of that method, it's a tested and proven method, it's a great wonder to me why this isn't the standard for if you want to accumulate bitcoin. I guess we're thinking the same thing, that not everyone knows how to do it and they're afraid to try doing it.

Investing in Bitcoin daily will be hard because of the fees. The optimal way is to invest weekly, bi-weekly, or monthly.
I tried to invest in Bitcoin every month last 2022, and sometime in 2023. Unfortunately, some events that happened in my life, affected my investing strategy thus, I only invest once every 2 months which is kind of making me sad. Nevertheless, I hold Bitcoins, and I can say that I'm already preparing myself to sell all of my Bitcoins when the bull run happens.

DCA is the simplest, most effective way to invest in Bitcoin, but not all investors can do that. Why? Because it will take some time for the investor to have some profits. It will take years for them to at least double their money through DCA. I don't want to generalize, but some of the investors are impatient enough that they don't want to wait years just to double their money, and they want it to double for only a year, and some even months. That's a pretty insane mindset that they have, eh?

DCA is for me the safest approach to investing in cryptocurrency. Not the best way, but if you don't want yourself to get stressed out, this is the way.

Users who are currently successful in trading and investing in cryptocurrencies have made huge profits using the DCA method alone. Basically we know that if investment or trading can be done using DCA method then a person's risk is reduced a lot when he goes for investment or trading. When you start your trading journey, you must have good knowledge about DCA to make your journey successful. And always when you use the DCA method you will never suffer any losses. There are many people who don't adopt such methods because they don't understand that when they invest they face a lot of losses which take a long time for their recovery. That's why using the DCA method when you invest or trade will minimize your maximum risk and move you towards profit.

Doing DCA method or Dollar cost averaging doesn't mean you have the guarantee to earn yes you can do DCA so that could accumulate Satoshi's into different price places, remember anything should be done with analysis, if you are just an investor that will buy bitcoin you want then there is no quarantee that you will gain profit, remember also because you are doing DCA it means that if everyday you are buying $100 worth of bitcoin doesn't mean in the next day the amount of bitcoin you brought will be same as $100 worth of bitcoin, bitcoin is very volatile currency so expect that your bitcoin's value may change overtime, don't look DCA as easy as it looks, yes it is easy because you will just buy bitcoin and hold it but without analysis you will not maximize the potential profit. But yeah, if you are a beginner and just want to invest in bitcoin, then DCA is the best and easiest way to invest.

DCA method is a good strategy to reduce investment risk so those who follow it completely are able to earn huge profits.  To follow DCA you must invest a certain amount over a period of time. Bitcoin is a very potential coin with a very good future so you can invest here absolutely a large amount and you can invest in DCA method either way you can get a good deal from Bitcoin if you can invest it for long term. If you can't hold Bitcoin long term, your chances of profiting from it will be very low

I have been in economic and investment forums for many years and I am not aware of anyone doing DCA daily with anything. I would say that the minimum is weekly DCA.

Other than that, as the OP says there are a multitude of forms of DCA. The simplest would be to buy the same amount at the same time interval, say $100 weekly. But you can take advantage of market dips to buy more if you have money available for example.

I agree with the advice because it takes market cycle and possible peaks and bottoms into account.

We can not know peaks and bottoms, and we can not know time for peak and bottom but we can base on history and build up our investment plan from history.

Like spending money to buy bitcoin around bottom time, and take profit around peak time. Just don't try to find peak and bottom. DCA with entries and DCA with take profit.

It might not be worth it to DCA Bitcoin daily. That's too costly. Although the transaction fees have already settled down a lot these past several days, daily Bitcoin purchases could also mean daily movement of funds and that would probably be a waste of money that could have been added to your holdings. Especially if you purchase Bitcoin in small amounts only, it might do you well if you just save your funds and do the buying once or twice a month.

you do know when you auto monthly invest your pre-tax salary into a pension fund.. THEY do buy and sell and move between investments when one is high and the other is low.

im not talking about day trading the small wiggles.. im talking about atleast being aware of the known market cycles of your investments if not using a middleman portfolio manager
EG dont be buying(investing max) during the ATH era of a cycle, wait for the correction

ill give example
2012-2015   buy from 2012-early 2013. ignore the peak then buy after the correction
2016-2019   buy from 2016-early 2017. ignore the peak then buy after the correction
2020-2023   buy from 2020-early 2021. ignore the peak then buy after the correction
2024-2027   buy from 2024-early 2025. ignore the peak then buy after the correction

that way you maximise the fiat-coin conversion
its like basic financial rule.. buy low sell high, repeat