DCA method - page 12. | Bitcointalksearch.org

Sophokles

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Quote from: Smack That Ace on October 11, 2023, 10:00:25 PM

The market does not only exist with small investors like us but also with sharks, market makers, big guys...If technical analysis can help us see the future of bitcoin, then market makers and sharks can do the same. And does anyone think that market makers will lose money for us to make a profit? I'm not against technical analysis, but we can't trust it completely when everyone can use it, not just us. What we see from technical analysis, others see too, so why are the markets always unpredictable and most people lose?

Most of the time technical analyses prove to be right but they come with a lot of manipulation. The majority is confident about a bitcoin rally following halving and ETF approval. They think it will be a gradual claim without any drawbacks. But what they don't know is that the road is not that straight. Whales will manipulate the market to iquidate future positions on both sides and shake the confidence of long term holders. Some of them will sell their positions out of fear. The bull will come when it is supposed to come but lots of investors will miss the train in confusion.

panganib999

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Exactly. The DCA method is pretty much your best friend if you're a low-wage earner and you still want to invest in bitcoin. It allows you to have a stake and consistently top that stake up as bitcoin increases in value, which means you can still maximize bitcoin's price potential even when you're at a position where you can't really do so. I would always suggest using DCA to anyone who wanted to invest in bitcoin especially if they've been ready about this the whole time and are just looking for a great investment strategy that would maximize their profit potential.

While there are some exceptions, DCA is the surefire way you have if you really want to make it out of this industry still, it gives you the opportunity to invest in a cryptocurrency that otherwise wouldn't have granted you as much profit anymore.

cafter

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Quote from: franky1 on October 11, 2023, 06:40:06 AM

DCA is the ignorant buy at any price but regular method. which means people are losing 1-10% efficiency of buying power by just buying at a whim

there should be another strategy called RDP Regular Dip Purchase. where people deposit but they dont simply buy when they deposit but have funds ready to buy the weekly dip.. where by if there is no dip that week THEN they just DCA at the whatever price of weekend

Another strategy to consider is the Analyzed Dollar-Cost Averaging (ADCA) method, which involves purchasing Bitcoin at prices lower than the average. This approach involves chart analysis to determine whether the current price is above or below the average. For instance, if you're practicing weekly DCA, you can inspect the daily candlestick chart to see if the price is below the seven-day moving average or above it. If the price is below the seven-day average, you can consider increasing your purchase amount by a certain factor. Conversely, if the price is above the average, you might consider reducing your buying amount. This approach can help you achieve better-than-average prices.

Week1: Our regular budget is 50 but the price is lower then average we will increase the amount to 80
-----------------------------
-----------------------------
*80
-----------------------------

Week2: Our regular budget is 50 but the price is higher then average we will decrease the amount to 20

-----------------------------
*20
-----------------------------
-----------------------------

We will now receive more bitcoin at a price lower than the average price.

Bitcoinpoly

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Quote from: Kara3 on October 09, 2023, 04:02:59 PM

You have no excuse not to acquire Bitcoin, this is one of my most used word when
discussing with my friends that have
high interest in crypto, but don't have capital too buy.

Since I introduced the DCA method to them, it was a game changer too them,
DCA is the best way for low income earners to acquire more Bitcoin.

I don't know if anyone else has different opinion about it?

DCA is a good method to make reasonable profit in the crypto space, the newly introduced Bitget smart portfolio feature is also helpful. The Bitget smart portfolio is an intelligent bot that dynamically rebalances your crypto holdings, ensuring your assets are always in sync. It continually and dynamically rebalances positions within a user-selected portfolio of cryptocurrencies, ensuring a constant proportion of each coin is maintained.

Blitzboy

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Quote from: Fivestar4everMVP on October 12, 2023, 08:29:52 AM

Quote from: bitnote on October 12, 2023, 07:28:47 AM

Remember to tell your friends with high profit(interest you said) in crypto their is huge risk is involved in it.
so don't be greedy invest only what you can afford to lose and also tell your friends about this, DCA is a risk free method to accumulate bitcoin at average price it is good strategy to stay disciplined,
and accumulate bitcoin slowly without disturbing your personal and professional life.

What exactly do you mean by DCA being a risk free method of accumulating bitcoin at an average price?
You already talked about the op telling his friends to only invest what or an amount they can afford to lose, and even though I personally believe that, bitcoin is the only cryptocurrency that gives investors a very low risk to the possibility of losing their funds, I would still say that its very important for us to always adhere and obey all rules when it comes to investment in any asset.

Whether DCA or not, the fact is that, one could still lose his or her money invested in bitcoin for several reason, and one of those reasons being due to market fluctuations, but this can only happen if the investor lack the patient to wait for the appropriate time to sell.

So in all, we should always maintain that rule which states we should never invest more than we can afford to lose, at least, for our peace of mind.

DCA isn't risk-free, but it has benefits, right? Investing a fixed dollar amount in Bitcoin at regular periods means you acquire more coins when prices are low and fewer when prices are high, average out the cost. The pseudo-problem is what if the market falls steadily? It may find the DCA strategy unsuccessful, right?

Following investment principles and the mantra “never invest more than you can afford to lose” is crucial to financial and mental well-being. Your emphasis on patience in waiting to sell and your warning about market changes indicate financial market experience. No matter the strategy (DCA, lump-sum, or otherwise) sage investing requires disciplined, informed decision-making and unyielding commitment to financial boundaries and goals.

Eternad

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Quote from: Kara3 on October 09, 2023, 04:02:59 PM

DCA is the best way for low income earners to acquire more Bitcoin.

I don't know if anyone else has different opinion about it?

DCA will helps you to your average price. Technically, it really help people to acquire more Bitcoin if we will compare on buying at higher price but having an extra income is the best way to acquire more Bitcoin since you will not get more Bitcoin without putting more money on it as your investment. DCA just average your buy price but it doesn’t increase your Bitcoin amount since you are just buying using your fiat.

Get a decent job that pay more. This will helps a lot to acquire more Bitcoin then apply DCA to have an average entry price to have a optimum profit once bullrun occur. DCA is not a game changer but rather your decision to continuously buy Bitcoin using your fiat.

tjtonmoy

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It doesn't matter if your income is low or high, DCA is the best way to accumulate Bitcoin. If you have higher income you can put more into Bitcoin investment and in the long run you will get more profits. And if you have a lower income then DCA will come handy. And this is the best thing about Bitcoin investment and doing DCA.
Bitcoin only gives you profit in the long run and keeping that in mind, putting little by little into investment will one day create a huge difference. It also helps people who have less knowledge about the market movement. By doing DCA they won't have to worry about price movements that much. And when you're happy with the profit you can just sell to take that profit.

Texac

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Quote from: Asuspawer09 on October 12, 2023, 08:06:45 AM

Quote from: Kara3 on October 09, 2023, 04:02:59 PM

You have no excuse not to acquire Bitcoin, this is one of my most used word when
discussing with my friends that have
high interest in crypto, but don't have capital too buy.

Since I introduced the DCA method to them, it was a game changer too them,
DCA is the best way for low income earners to acquire more Bitcoin.

I don't know if anyone else has different opinion about it?

I mean it gets even better because by dividing your investment and only investing probably weekly or monthly you're also minimizing the risk of your investment because if you just buy a big amount one time, you dont really know what direction Bitcoin is going to, it might drop its market price after you bought it or vice versa you might get lucky the market price is going to increase after you buy Bitcoin. Compared to dollar cost average it does not really matter if the market price is going to increase or drop because you always buying every week a small amount of investment so you are accumulating Bitcoin anyway, it is for sure not going to be a huge profit compared if you just buy one time and then the price just skyrocket, but it would still be a profit anyway because market price is going to increase in the future if your going to way about it, as long as you dont sell in a lower price and sell at the top it is always going to be a profit, for sure you can always modify by increasing your buying when the market is down and lower your volume when the market is pumping.

Buying once in large quantities is not too risky because if you hold it until the price increase season comes, you will also make a profit. but buying once will cost us the opportunity to make maximum profits, as we will miss the bottom if the market falls further after we buy. it can be said that the DCA strategy is considered the most effective strategy in the bear market. one more thing, using the DCA strategy will help us save more time instead of having to spend a lot of time researching and analyzing the market to choose the best buying point, but there is no guarantee.

jeraldskie11

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Quote from: bitnote on October 12, 2023, 07:28:47 AM

Remember to tell your friends with high profit(interest you said) in crypto their is huge risk is involved in it.
so don't be greedy invest only what you can afford to lose and also tell your friends about this, DCA is a risk free method to accumulate bitcoin at average price it is good strategy to stay disciplined,
and accumulate bitcoin slowly without disturbing your personal and professional life.

All investments, including cryptocurrency, have some level of risk. If you wish to invest in cryptocurrency, you should be aware of the risks involved. To reduce risk, don't invest in random coins right away; instead, research the currency you want to invest in to see if it's worth it. To be honest, if you want a low-risk crypto investment, I would recommend solely investing in Bitcoin and using DCA. It is preferable if you understand how to analyze the market while performing DCA; this will allow you to improve your potential profit.

Fivestar4everMVP

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Leading Crypto Sports Betting & Casino Platform

Quote from: bitnote on October 12, 2023, 07:28:47 AM

Remember to tell your friends with high profit(interest you said) in crypto their is huge risk is involved in it.
so don't be greedy invest only what you can afford to lose and also tell your friends about this, DCA is a risk free method to accumulate bitcoin at average price it is good strategy to stay disciplined,
and accumulate bitcoin slowly without disturbing your personal and professional life.

What exactly do you mean by DCA being a risk free method of accumulating bitcoin at an average price?
You already talked about the op telling his friends to only invest what or an amount they can afford to lose, and even though I personally believe that, bitcoin is the only cryptocurrency that gives investors a very low risk to the possibility of losing their funds, I would still say that its very important for us to always adhere and obey all rules when it comes to investment in any asset.

Whether DCA or not, the fact is that, one could still lose his or her money invested in bitcoin for several reason, and one of those reasons being due to market fluctuations, but this can only happen if the investor lack the patient to wait for the appropriate time to sell.

So in all, we should always maintain that rule which states we should never invest more than we can afford to lose, at least, for our peace of mind.

Asuspawer09

sr. member

Activity: 1638

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Quote from: Kara3 on October 09, 2023, 04:02:59 PM

You have no excuse not to acquire Bitcoin, this is one of my most used word when
discussing with my friends that have
high interest in crypto, but don't have capital too buy.

Since I introduced the DCA method to them, it was a game changer too them,
DCA is the best way for low income earners to acquire more Bitcoin.

I don't know if anyone else has different opinion about it?

I mean it gets even better because by dividing your investment and only investing probably weekly or monthly you're also minimizing the risk of your investment because if you just buy a big amount one time, you dont really know what direction Bitcoin is going to, it might drop its market price after you bought it or vice versa you might get lucky the market price is going to increase after you buy Bitcoin. Compared to dollar cost average it does not really matter if the market price is going to increase or drop because you always buying every week a small amount of investment so you are accumulating Bitcoin anyway, it is for sure not going to be a huge profit compared if you just buy one time and then the price just skyrocket, but it would still be a profit anyway because market price is going to increase in the future if your going to way about it, as long as you dont sell in a lower price and sell at the top it is always going to be a profit, for sure you can always modify by increasing your buying when the market is down and lower your volume when the market is pumping.

bitnote

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Activity: 56

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Remember to tell your friends with high profit(interest you said) in crypto their is huge risk is involved in it.
so don't be greedy invest only what you can afford to lose and also tell your friends about this, DCA is a risk free method to accumulate bitcoin at average price it is good strategy to stay disciplined,
and accumulate bitcoin slowly without disturbing your personal and professional life.

apogio

hero member

Activity: 560

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Quote from: franky1 on October 11, 2023, 06:40:06 AM

there should be another strategy called RDP Regular Dip Purchase. where people deposit but they dont simply buy when they deposit but have funds ready to buy the weekly dip.. where by if there is no dip that week THEN they just DCA at the whatever price of weekend

I agree but most people will argue they couldn't possibly know when the dip is reached. For Bitcoin, I consider every price at the level where it is now as a dip, so essentially DCA and RDP are identical processes Tongue

Smack That Ace

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Quote from: Sophokles on October 11, 2023, 11:19:08 AM

Quote from: Sayeds56 on October 11, 2023, 11:02:11 AM

Quote from: Smack That Ace on October 11, 2023, 06:09:57 AM

Even experts cannot make accurate predictions about bitcoin's evolution, don't forget bitcoin is very unpredictable. Everyone wants to buy at the lowest price and sell at the highest price but since bitcoin is unpredictable, the DCA strategy is considered the best strategy when investing in bitcoin. If technical analysis could accurately tell us where the lowest price is and where the highest price is, I think there would be no losers in the market.

@CryptounityCUT, if you are confident in your analytical skills, can you tell us if the current price of 27k$ is the lowest price for accumulation?

You are absolutely right that Bitcoin is known for its unpredictability and high volatility. Even the prominent experts can't consistently make correct predictions about i future price movements of Bitcoin. Hence, DCA strategy is considered relatively safe and result oriented in the long term.

In the world of investing, there will be always winners and losers, and there is not a single strategy which is 100% risk free and guarantees profit. Therefore it is important to evaluate your risk tolerance, financial situation and goals before making any investment decision.

If everyone can make the right prediction only by doing some fundamental and technical analysis, then all of them would be experts. The DCA strategy is for people who are lazy or don't have time to spend some time in front of the monitor. These types of people will deposit the funds and place the buy order in a regular order. Easy and simple investment strategy, but they will miss the potential to buy the dip when the market makes a correction.

The market does not only exist with small investors like us but also with sharks, market makers, big guys...If technical analysis can help us see the future of bitcoin, then market makers and sharks can do the same. And does anyone think that market makers will lose money for us to make a profit? I'm not against technical analysis, but we can't trust it completely when everyone can use it, not just us. What we see from technical analysis, others see too, so why are the markets always unpredictable and most people lose?

Sophokles

hero member

Activity: 1232

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Quote from: Sayeds56 on October 11, 2023, 11:02:11 AM

Quote from: Smack That Ace on October 11, 2023, 06:09:57 AM

Even experts cannot make accurate predictions about bitcoin's evolution, don't forget bitcoin is very unpredictable. Everyone wants to buy at the lowest price and sell at the highest price but since bitcoin is unpredictable, the DCA strategy is considered the best strategy when investing in bitcoin. If technical analysis could accurately tell us where the lowest price is and where the highest price is, I think there would be no losers in the market.

@CryptounityCUT, if you are confident in your analytical skills, can you tell us if the current price of 27k$ is the lowest price for accumulation?

You are absolutely right that Bitcoin is known for its unpredictability and high volatility. Even the prominent experts can't consistently make correct predictions about i future price movements of Bitcoin. Hence, DCA strategy is considered relatively safe and result oriented in the long term.

In the world of investing, there will be always winners and losers, and there is not a single strategy which is 100% risk free and guarantees profit. Therefore it is important to evaluate your risk tolerance, financial situation and goals before making any investment decision.

If everyone can make the right prediction only by doing some fundamental and technical analysis, then all of them would be experts. The DCA strategy is for people who are lazy or don't have time to spend some time in front of the monitor. These types of people will deposit the funds and place the buy order in a regular order. Easy and simple investment strategy, but they will miss the potential to buy the dip when the market makes a correction.

Sayeds56

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Activity: 1316

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Eloncoin.org - Mars, here we come!

Quote from: Smack That Ace on October 11, 2023, 06:09:57 AM

Even experts cannot make accurate predictions about bitcoin's evolution, don't forget bitcoin is very unpredictable. Everyone wants to buy at the lowest price and sell at the highest price but since bitcoin is unpredictable, the DCA strategy is considered the best strategy when investing in bitcoin. If technical analysis could accurately tell us where the lowest price is and where the highest price is, I think there would be no losers in the market.

@CryptounityCUT, if you are confident in your analytical skills, can you tell us if the current price of 27k$ is the lowest price for accumulation?

You are absolutely right that Bitcoin is known for its unpredictability and high volatility. Even the prominent experts can't consistently make correct predictions about i future price movements of Bitcoin. Hence, DCA strategy is considered relatively safe and result oriented in the long term.

In the world of investing, there will be always winners and losers, and there is not a single strategy which is 100% risk free and guarantees profit. Therefore it is important to evaluate your risk tolerance, financial situation and goals before making any investment decision.

franky1

legendary

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DCA is the ignorant buy at any price but regular method. which means people are losing 1-10% efficiency of buying power by just buying at a whim

there should be another strategy called RDP Regular Dip Purchase. where people deposit but they dont simply buy when they deposit but have funds ready to buy the weekly dip.. where by if there is no dip that week THEN they just DCA at the whatever price of weekend

KiaKia

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Quote from: Kara3 on October 09, 2023, 04:02:59 PM

You have no excuse not to acquire Bitcoin, this is one of my most used word when
discussing with my friends that have
high interest in crypto, but don't have capital too buy.

Since I introduced the DCA method to them, it was a game changer too them,
DCA is the best way for low income earners to acquire more Bitcoin.

I don't know if anyone else has different opinion about it?

Same opinion brother, same, I don't see anything that makes getting Bitcoin with piece of money from weeks to months than using dollar cost averaging, it's normal for beginners to believe that they will need to buy 1 Bitcoin as many that get into Bitcoin through my help asked the same question.

How much is one Bitcoin going to cost them say said, until I told them that they don't need to get one Bitcoin to have Bitcoin, not even the half, they can start from somewhere, and that's through the help of dollar cost averaging.

Some people are out of Biitcoin today Because they thought they couldn't get half BTC or just some pieces of one Bitcoin, someone living close to me thought the same thing, thing is many people don't do research, that's why they don't know, many have smartphones and the internet today but still, they late lacking vital information.

Smack That Ace

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Quote from: Sayeds56 on October 11, 2023, 05:35:57 AM

Quote from: ?? on ??

Dollar-Cost Averaging (DCA) can be a sound strategy, but I personally prefer employing technical analysis to enhance my BTC accumulation. In essence, I aim to capitalize on as many price lows as possible, which I believe is a more advantageous approach compared to a fixed DCA plan.

My rationale behind this perspective lies in the data from the past three years, during which a DCA strategy would have resulted in a 16% reduction in one's portfolio value. This underscores the importance of discerning the market's various stages and choosing the right moments to accumulate more BTC effectively.

It's great to hear that you have developed well thought out approaches to accumulating Bitcoin by employing technical analysis to time your Bitcoin purchases. However, success of this strategy largely depends on your proficiency in interpreting technical indicators and making entry decisions based on trading signals. Moreover, it is important to acknowledge that Is also important to note that technical analysis is not a perfect science, it is more like making educated guesses.

In summary, accumulating Bitcoin by using technical analysis can be sound strategy for experts, but for most general investors I believe DCA is an effective approach.

Even experts cannot make accurate predictions about bitcoin's evolution, don't forget bitcoin is very unpredictable. Everyone wants to buy at the lowest price and sell at the highest price but since bitcoin is unpredictable, the DCA strategy is considered the best strategy when investing in bitcoin. If technical analysis could accurately tell us where the lowest price is and where the highest price is, I think there would be no losers in the market.

@CryptounityCUT, if you are confident in your analytical skills, can you tell us if the current price of 27k$ is the lowest price for accumulation?

Sayeds56

copper member

Activity: 1316

Merit: 715

Eloncoin.org - Mars, here we come!

Quote from: ?? on ??

Dollar-Cost Averaging (DCA) can be a sound strategy, but I personally prefer employing technical analysis to enhance my BTC accumulation. In essence, I aim to capitalize on as many price lows as possible, which I believe is a more advantageous approach compared to a fixed DCA plan.

My rationale behind this perspective lies in the data from the past three years, during which a DCA strategy would have resulted in a 16% reduction in one's portfolio value. This underscores the importance of discerning the market's various stages and choosing the right moments to accumulate more BTC effectively.

It's great to hear that you have developed well thought out approaches to accumulating Bitcoin by employing technical analysis to time your Bitcoin purchases. However, success of this strategy largely depends on your proficiency in interpreting technical indicators and making entry decisions based on trading signals. Moreover, it is important to acknowledge that Is also important to note that technical analysis is not a perfect science, it is more like making educated guesses.

In summary, accumulating Bitcoin by using technical analysis can be sound strategy for experts, but for most general investors I believe DCA is an effective approach.

Topic: DCA method - page 12. (Read 3547 times)