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

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.

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.

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.

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.

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.

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.

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.

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 am telling you this simply. Let's say you deposit exactly $1000 in any exchange account, depositing $1000 doesn't mean you have to invest $1000 at the same time. At the same time, if 1000 dollars can be deposited, then every 10 hours from that 1000 dollars, if bitcoin can be purchased with 10 dollars, then no additional transaction fee will be deducted for each trading. There is a very small trading fee for trading on the exchange. I understand that one dollar amount of Bitcoin or any other coin cannot be bought from the exchange. Most of the exchanges require a minimum purchase of 10 dollars. If you can invest $10 after 10 hours then the investment amount is one dollar per hour and this is the way I am talking about investing, I hope now you understand what I mean by investing one dollar per hour.

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.

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.

Buying bitcoin with the DCA technique is indeed a very good technique. Because the purchases made become more consistent.

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.

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.

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.

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.

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.

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.

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?

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.

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.

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.  .

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.

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

By investing in DCA strategy if planning to hold that investment for a long time then according to me it is better not to sell investments but focus only on buying investments. After an investor invests he again sells his investment and after selling he again buys the investment thereby but his investment moves forward only through buying and selling. Instead of buying and selling continuously, only buying should be continuous. And I mentioned in my first post that since people may have financial needs, instead of investing the whole amount, they can save some money to meet their needs later and to meet those needs so that they don't need to sell their investments.

automated monthly deposits only work best when depositing into portfolio managers who then choose to invest more in the lows and less in the highs for you,

i still advise people should have some self management to not throw all investment allotment in the hype, and the more in the dips
buy low sell high. know the market cycles atleast

They must know where is their capital source for investing before can apply the DCA strategy well.

There are some websites to calculate capital, ROIs for your DCA investment but I like this one most.
Dollar Cost Averaging with costavg.com include exchange fee
https://costavg.com/

To take profit, with DCA taking profit, you can apply JJG strategy.
[ANN] JJG Sustainable Bitcoin Withdrawal Strategy
https://bitcoindata.science/withdrawal-strategy

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.