Topic: DCA method - page 10. (Read 3547 times)

DCA topics have been extensively discussed in this forum and when it comes up members are eager to discuss about it, that shows that it's a topic that is worth talking about anytime. We can't deny that DCA method is a strategy that is working for many investors because without being disciplined to periodically remove money from your income to buy Bitcoin it'll not be easy for many low income earners to invest. Bitcoin is one of the best investments that both the rich and poor can go into, it doesn't discriminate.

Everybody can hodl according to their capabilities and that is where DCA method is very helpful for average and low income earners. Potential investors in Bitcoin can hear about the price of 1 BTC and become discouraged because of the huge amount. But when they understand how Bitcoin works that they can buy in Satoshi and use the DCA method to grow their investment, they'll understand the ease of accumulating on the long term with the method.

I personally like the idea for newbie bitcoin accumulators to be accumulating bitcoin every week, and a weekly accumulation schedule helps for staying active in bitcoin and in bitcoin purchases and potentially allowing the buying of dips (and maybe even paying attention in terms of researching and learning more and more about bitcoin)... The longer that a newbie accumulates the more his own stash size and other personal circumstances might contribute towards his potentially moving off of weekly BTC purchases, yet there is no reason to believe that weekly DCA ONLY is beneficial to newbies, and it could be the case that even someone DCAing into BTC for more than 10 years might still be employing weekly DCA intervals.

Of course, when you are paid is ONLY part of the formula for budgeting your cashflow, and surely there is a need to consider expenses within your cashflow considerations and also to consider how you are maintaining and managing back up funds, so many times, a person will have to budget various expenses in terms of monthly intervals, since some bills will be come to be due on a monthly basis.

The less frequently a person is paid and the more irregular his disposable income (income versus expenses), then the more that he would likely have to maintain various kinds of backup funds to help to smooth out his ability to buy bitcoin every week and to make sure he is actually using disposable income to buy bitcoin rather than money that he might need for his expenses.

For me all I think everyone should just buy and remove any strategy of calculating the price difference although indeed there must be time that the price will dip so down but even at that too it shouldn't be as discouragement but used as a wonderful opportunity to buy because I believe the best time to buy is even during the dip since you are holding your coins for a long period and with DCA strategy you just get to buy no matter the price situation of Bitcoin and reason being you know that no matter what Bitcoin is valued to still go up in the future so the best you could do is just fastened your seat belt and continue buying till when the price is situation for you.

It depends on each situation, but you need to also consider any applicable fees, specially if you are talking about small amounts in each case.

For example, you don't want to make frequent buys of say, $100, when you are paying a fee of $5 each time.

In the same way, moving Bitcoin around to your own wallet should not be done too frequently, to reduce the miners fees.

In certain scenarios you might be better off simply saving up for a larger amount and buying it all at the same time.

Since you can't predict the price in the future, you can simply ignore that aspect, you will win sometimes and lose sometimes.

The challenge will be I think is to keep your money in bitcoin for that long. For sure you will see the growth your money will have and you will be tempted to take it out but patience shall pay off.

Your money will be in more danger if you take it out. You might take it out at the wrong time, wrong price and you could never buy again in the original price you bought it for. This is why long term investment is a less risky option for investment

I would like to add that it is not so easy to find such payment in permanent Fulltime jobs. I have long thought about who among the workers gets paid every week, and I want to say that I do not know such professions. Probably only those workers who get paid like that every day.
But here on our forum, the signature campaign pays Bitcoins every week. And for the guys who buy on the DCA, this is a great option.
After all, as you noticed, they can buy Bitcoins more often than once a month.

Judging by the logic of DCA, the most effective way to buy Bitcoin will be to buy it not even once a month, as most people do. But more often. This means that for workers who get paid every week, this method is even better and more effective, because when buying Bitcoin through DCA every week, the average purchase price will be four times more accurate.
And this will smooth out fluctuations in the Bitcoin purchase rate.

This is certainly very important for anyone who wants to run their investment well because without managing their finances well, it is very unlikely that they will be able to run their investment well, everyone certainly has the right to determine the type of assets they want to invest in for their future and of course they must really understand the investment being run.

When someone chooses to use the DCA method, of course this will be very good for their Bitcoin accumulation process and most importantly they have a steady source of income so they can easily run the method because it will be very difficult for some people who do not have a steady income to be able to do the method well and they may miss the purchase time that has been set because they do not have funds that they can use to accumulate Bitcoin, but for those who have a steady income, of course they will be able to easily divide the income they have and after all their needs are met, the rest can be used to accumulate their Bitcoin assets.

I disagree with most of your narratives  but Yeah DCA strategy can be very good with consistency but I don't think one should be prioritizing profitablity when you are still in your accumulation journey, since there is no guarantee of being in profits just as a result of how long you hold your coin. Secondly I don't think it is ok for anyone to have a fixed period or limited  timeline to buy and holding your coin since there can be possibility or senerio case where the price can go down such that you might not be in profit at the time you planned or fixed to sell.

I was having this mindset before but after checking the history of Bitcoin in terms of the growth in price, I think that statement is not entirely correct. This is because no one loses money to Bitcoin if the investment is held for at least 5 years. Besides, the only time you get to lose money in Bitcoin is when you sell. So instead of advising people to invest only what they can lose, we can say that people should invest what they can afford to hold for long time. In other words, they should invest money they have no urgent need of and can afford to leave them there for some years. Consequently, I see Bitcoin as a good option for retirement savings and this is where the DCA method can be very useful for those earning regular income such as salary.

Honestly this sounds like trading where you will buy and sell when you are profitable regardless of how much profit is made and I think this is difficult to say as an investment because in the end buying and selling within a short period of time is not an investment especially when referring to the DCA concept that was discussed earlier in the OP.
Investment, especially saying about DCA, requires a longer time frame than that and we cannot talk about one week, one month and even one year sounds short in this case, so we must prepare mentally and our beliefs must be imprinted from the start if we want to be in bitcoin and invest in it especially when using DCA as an investment option that you want to do.


I think this is also a little difficult because my version for DCA is actually for the beginning it focuses on how much income we have, because it is clear as an initial benchmark where we ultimately divide it for living needs, reserve funds that are mandatory and the rest we can allocate to the investment we want to run. It doesn't need to be too big so as not to burden you because the most important thing in DCA is consistency. It would be ridiculous if you start from the smallest and keep multiplying to keep getting bigger or even start from scratch with a very large nominal but you are unable to be consistent in it so that it disrupts the DCA that you do because it is too burdensome and unable to do it.

I think everyone who invests in Bitcoin, whether they are beginners or those who have been around for a long time, must have arranged their finances as best as possible before starting to invest in Bitcoin. Even I don't think it's worth mentioning they are crazy people because they want to change their fate by investing in Bitcoin.

Like the topic title where DCA is the best and it is the right choice for them to apply it throughout their investment journey in bitcoin. Of course, they have determined from the start what percentage of money they are ready to use in investing in bitcoin, whether it is 5% of their income or more and that is a decision they must make as well as possible so that investment planning using the DCA method can run smoothly.

Yeah true, it's as simple as that but the reason why it's widely emphasis here in the Bitcoin community is because of some naive and maybe newbie investor that fail to understand that Bitcoin investment is not all about just buying with money they have because I believe there are some crazy folks who invest crazily not only on Bitcoin but other area without knowing the implications of how aggressive their investment can get them. Buying or using part of your earning which is not that important (you can spare) to get Bitcoin is what every investor who is not financially strong should do because it's reduces the risk of not hitting your target.

Mate! You seem very excited. There may be debate as to whether DCA is the best strategy or not. DCA strategy is really a very good strategy and it has low risk. But I can question whether DCA is the best strategy or not. I think your income and how much money you own must be considered in any method including the DCA method. When you invest you must have a source of income and investable income. If your income is not investable and if you start investing ignoring that then I can say it will be very difficult almost impossible to make your investment long. You may face losses if you cannot prolong the investment. As an investment strategy, most of the members will suggest you DCA strategy and advise you to invest for long term. In this case, if your income is not suitable for investment, then I think no one will advise you to invest. It doesn't matter how much money you own, but your income does.

People have to definitely praise. DCA is the best strategy that any investor can apply. It doesn’t matter what your income is or how much money you have. Regularly investing in Bitcoins will give good returns in the long run. People are still praising it because it has comparatively low risk. It’s like investing in mutual funds but not actually investing in stocks. In a fixed period of time, you buy the coins and hold them for a certain amount of time. Definitely, after a good amount of time, you get the profits; hence, many investors love this strategy.

Of course any long term investment such as 4-10 years or longer should be taken from disposable income so that means that it is money that you do not need for short term expenses and perhaps even for medium to long term expenses, since as you mentioned that it is money that you can afford to lose so that you are ready, willing and able to lose 100% of it.. even though no one invests into something they expect will go to zero, even with a great investment such as bitcoin (perhaps the best investment currently available), there are still downside scenarios and even possibilities of it going to zero.

Another thing if you are investing long term and using a DCA approach, there might not be any exact idea about expected price specifics in the future or the exact timeline or circumstances of the investment beyond perhaps having some general parameters in regards to time and/or price in the future, yet there should be a presumption that the price trajectory is more likely to be up rather than down.. otherwise you would not want to invest into it.  

Yeah, you might end up being wrong, but you would still figure out whether to invest based on your expectations that the price trajectory is more likely to be up than down.   With a long term investment DCA works since it is not necessarily based on pump and dump ideas, yet people do also use DCA for pump and dump and trading kind of scenarios too, even though they may well expect to be in the asset for a shorter period of time than a long term investor and might even pre-establish some more specific price and/or time targets, which may well not be the case with a longer term investors - even though surely individuals have their own ways of establishing their price expectations and their timelines and whether they consider the investment to be long, medium or short. .so the categories of investing versus trading can surely overlap.... and the applicability of DCA is more based on how to get into the investment rather than needing to specifically establish how or when to get out of the asset... .

The option to invest is for people who can save some part of their income. There is no need to consider saving if all you earn is what you need to survive. However, one can still increase his earnings by acquiring skills that can make him earn higher or seek other means of getting extra income.

It is predicted that the price of Bitcoin will keep increasing in the future but it will always be affordable since one can buy in bits. Even if the price gets to $100k in the future, an investor can still decide to buy a unit that he can afford using DCA. 

I can see a lot of praise of DCA here. I agree that it has its advantages: it's simple, affordable, it makes investing into Bitcoin a routine task, and overall it allows accumulating more and more BTC. However, I'd say that if someone has low income and can barely make ends meet, there's probably no good way to invest in Bitcoin. Because I firmly believe that people should only invest what they can afford to lose. Also, DCA is good overall primarily because Bitcoin tends to have long bear markets, so it means that a person is mainly accumulating BTC at a low price (compared to ATH). But we don't know if that's going to be the case in the future, and if the price remains stably high or is even growing, maybe DCA isn't very good because one's now getting a good price for it.

You surely seem to be describing matters from a trading rather than an investing perspective, and sure I understand that some traders might even use DCA to establish their position and so if they do not have a lump sum they use DCA to establish their position over time, and so traders consider their entry and exit plans with quite a bit more specificity than investors, and investors may well take a while to get into a position or even might DCA for 15 to 20 years or more before finally coming to a time where there might become justified some kind of a need to reassess whether he might have already accumulated enough or if some other variation of the strategy such as buying on dips or some changes in the DCA timeline or amounts....

So the longer term investor might hardly have any clues regarding exact exit plans and/or conditions, except maybe just generally expecting that over the longer term the asset (in this case bitcoin) is likely to continue to go up in value..and then reassessments could be made along the way... Another thing an investor may or may not consider downside conditions upon which to exit the investment, and he may well be willing to ride  the investment to zero or somewhere close to zero or may have some other thoughts about what might trigger the need to exit the investment, even if the investment were to end up at a loss, but the specifics might not be exactly established at the start and those kinds of conditions might be reassessed along the way, even though some general expectations of profits would be the base case, there is also simultaneous abilities to appreciate that scenarios outside of the base case could end up playing out.

An investor will only choose to take profit on a distinguished occasion. One would be based on the investment logetivivty. If the investment is for the short term then it is likely that he will take it at every moment in time that he accrue a profit. If it's for the long term then there must be a target or horizon that he has in mind for withdrawal. Another fact that may cause an investor to profit at favorable conditions is life happenings. Ranging from unexpected expenses, debts, health care and to mention a few.

Every entry point is a good time to buy. At 1$, 10$, 1000$, 10,000 or 100,000$. One thing is certain the price will continue to increase as years pass by.