Topic: DCA method - page 2. (Read 3547 times)

It is true that anyone will be able to easily invest in Bitcoin as long as they have a good understanding of how to buy and store their wallet keys properly and I agree with you as a beginner it will indeed make it easier for them if they choose the process of accumulating their Bitcoin assets using the DCA method and also they can choose the purchase schedule according to their wishes in order to be able to hold their assets in the long term.

In the process of holding back in the long term, of course they must have a target to make a profit and if they have reached the target they will be able to use the profits they have earned or choose to keep the assets they have, but I think it will be better when they have reached the target they want then they can use some of the profits they have gotten to start a business or try their luck in other fields according to their abilities.

The way you put describe things here its like you are pressuring yourself to learn a lot of things first before investing in bitcoin. Starting up accumulating then use DCA method is good enough as starting point for investor so that they could able to start their investment journey with bitcoin. Learnings could be gotten thru experience and for sure that you will pay more attention to learn a lot of things about bitcoin if you already starting your journey. Compare if you are still stopping yourself to invest because what you want is to learn more and this situation could just delay your start up. So choose what's the best but if they are not comfortable with their decision, well its really up to people since somehow they are the one who could decide on what's better for them.

The advantages of investing in the DCA method of Bitcoin are the most. Because you notice a new investor can certainly invest in Bitcoin if he wants to invest, but his savings are not accumulated with him. In such a situation only DCA method is suitable for him, because if he invests bitcoin regularly on weekly or monthly basis then he can keep his excess expenses and regular and part of income through bitcoin.

In this way, if he accumulates bitcoins for the next few years, his portfolio will be much bigger and he can hold bitcoins for a long time with this strategy. Because the longer he holds and invests his bitcoins, and the longer he invests, the more bitcoins he will accumulate in his wallet. The risk will be much lower, as the Bitcoin purchase price will be controlled and the savings will be the most.

In your earliest years of investing into bitcoin, you would not need to manage it, except just to make sure that you protect it in such a way that you don't lose it.  Otherwise, the management skills come on the cashflow side in terms of anyone wanting to invest aggressively needs to make sure that he is still investing within his discretionary income and within timelines that he is not going to need the invested money for 4-10 years or longer.  That means that there is going to be needs to have cash funds for spending on all expenses, including emergencies that might come up. Sure, if you engage in strong cashflow management, it may well end up being the case that there is never any need to dip into an emergency fund, yet each of us should be keeping an emergency fund of at least 3 months, just in case.. And surely, our backup funds should go beyond just our emergency fund, and how much we need to keep for various back up funds likely relates to our various ways that we spend money or how complicated our expenses and/or our cashflow might be.  More uncertainties should mean more kinds of back up funds, yet if we are serious about protecting our investment and wanting to make sure that we stay in our investment, then we should make sure that we have sufficient back up funds and we do not end up overinvesting.. We may well want to invest into bitcoin aggressively, yet we need to make sure that we don't go beyond our discretionary income and the various back up funds that we  have built up with our discretionary income.. which means keeping sufficient cash cushions so we don't end up recking ourselves.


In order to have strong cashflow management skills, there is no reason to invest in other assets besides bitcoin and cash.. especially for beginners.  For beginners, the most important thing is cashflow management - not asset management, so don't be getting mixed up into bullshit ideas that there are needs to invest beyond bitcoin and cash... at least in the beginning.  Now if a BTC investor spends several years or even a cycle or two building up his bitcoin holdings, then maybe he might want to diversify out into other investments, besides bitcoin.  Also if a person comes to bitcoin and he already has various other investments, it is up to him whether he might want to sell any of his other investments, or keep investing into the other investments, or just to keep the other investments without adding to the other investments and just to build his bitcoin investment.  Having other investments gives more options, and frequently long term investments are not very inclined to trade between investments (or to reallocate), yet reallocation remains discretionary in terms of considering the costs of reallocating or to maintain investments that have already been established. 


I am pretty sure that I already mentioned that people spend 30-40 years investing and sometimes do not reach fuck you status (meaning an ability to retire early from working) after all of their years investing.. so even though you cannot really rush the slowness of investment, yet if you find something as powerful as bitcoin, it could well end up being the case that a guy might be able to cut his timeline in half to invest 15-20 years rather than 30-40 years and either reach fuck you status or to come close to reaching fuck you status.  Of course, there aren't any guarantees, so surely even if someone might start out by investing only in bitcoin and cash, there could be some time down the road that he might choose to spread into various other assets, yet it seems beyond this thread to really go into what any of those other assets might be or even if it would be a good idea to invest beyond bitcoin and cash.. One of the issues that can come from building something like bitcoin may well also be that more cash is generated, and a person may want to keep some value in other assets besides having whatever is not in bitcoin in cash.

The DCA strategy is similar to the buy and hold method, meaning investors can buy Bitcoin and then hold it for the long term. Simply put, DCA is an investment strategy that aims to minimize the impact of price volatility when investing, such as reducing risk. When using this method, investors do not need to deposit large amounts of funds at once, but gradually. Investors will also avoid FOMO because they do not need to make decisions emotionally for fear of missing the moment or losing. The convenience offered by DCA can help novice investors in collecting Bitcoin because the way it works is almost the same as saving, investors who use DCA will get satisfactory returns and even have small risks.

Yes, most of the investors are forced to end their aggressive journey midway and deprive themselves of huge profits due to lack of proper management of valuable assets. But if they follow the DCA method regularly with a proper action plan and make a logical combination of Bitcoins with strong real assets along with forming a backup fund, the chances of getting a decent portfolio would be greatly increased.
Every investor would be able to achieve his desired goals if he could properly evaluate each level of his assets. Adequate investment criteria that help an investor succeed in his long-term journey such as a reliable source of alternative income and floating cash flow and these two financial sources allow him to accumulate a large Bitcoin stash.

DCA does not seem to be about getting profit.. especially in the short term.

DCA is mostly about being able to build up a BTC stash within your own budget over time, and hopefully over time, the one(s) DCAing will have more options for having had DCA bought BTC as compared to if s/he had not DCA bought BTC.

Another thing is that so many people have difficulties investing into BTC or anything else because there is a bit of a tendency to believe that the amount invested needs to be a lot, and a lot up front in order to be meaningful, yet one of the powers of DCA is that over an extended time the amount invested can end up adding up to way more money than the person had ever been able to save up (or invest) through any other previously tried methods, and if the asset (in this case BTC) ends up going up in price too, then there is a double bonus..  The first bonus is the stacking away value and the second bonus is the asset going up in value,
 yet surely there is no guarantee that BTC will go up in value, even though surely many of us recognize and appreciate that we invest into bitcoin since we speculate that it has decently good odds of increasing our options down the road.


Being consistent and persistent shows dedication to the investment, yet surely sometimes people have problems with their cashflow and/or they have problems with their will power.. So there is ONLY so much that can be done in terms of whether people continue to invest or not.. or whether they choose to invest into bitcoin aggressively or whimpily.

Of course and all need a process for us to get profit and it is not something that happens overnight. Btw, in my opinion BTC is still in the category of interesting and profitable investments. Of course, the capacity of funds owned by a person is also different. In addition, users of this method are also required to be consistent and sustainable in its application. The conclusion that I can draw, if we focus on investing in BTC with any technique in adding to the burden I am sure there is no such thing as wasted words.

If you want to make a profit by investing in Bitcoin, you must have experience with Bitcoin and always analyze the market.  You need to analyze more things for investment, especially using DCA method in your investment, though it may not give you much profit, but it will reduce your risk of loss. Also, I think if you are interested in investment then definitely get good knowledge about DCA and you save a certain amount and invest it. Also, if you are having trouble understanding, then I think you need to go to this place to learn about DCA and investing. https://bitcointalksearch.org/topic/buy-the-dip-and-hodl-5132720

The thing is that if you think that Bitcoin will continue to rise, then there's no such thing as a selling event in a bull run, because it will be worth more later on.

If you DCA for a long time, decades even, and then use it whenever you need it, you will probably be earning a lot of money, without needing to follow any markets.

As they say, it is time in the market instead of timing the market.

Perhaps you don't know we have many bigots here (though most of them are fake, they have enough altcoins in their arsenal but want people to read the character they perceive of them). These people can obviously not prove what they say, and I wonder why all coins that are not Bitcoin shitcoins, that's baseless. No doubt, Bitcoin is the pioneer and most respected but other top-rated coins that have made many people billionaires, millionaires and thousandnaires, where many are trading and investing them daily with billions in daily volume. Calling such shitcoins is foolishness. There is no much to say here because the truth is all around us, let's leave them to continue deceiving themselves while true investors appreciate both Bitcoin and the relevant altcoins with no bias.

That's decent advice, especially for those holding in non-custodial wallets (as they are supposed to) and DCAing often, i.e. every week. Assuming such investors would want to sell eventually, ideally at the peak of the bull run, that's exactly when the probability of a clogged blockchain and transaction bottleneck (aka high fees) is high. It's hard to predict how bad it can get, so consolidating from time to time during quiet time sounds like a good idea and doesn't require much effort.

The reason why many folks have become interested in UTXO management in recent times is because there are likely going to continue to be high transaction fee circumstances in the future that could well undermine the value of the BTC that you hold, especially if you have a bunch of UTXOs with relatively low value.  Let's say that you spent 4 years or longer buying $10 per week of BTC, and each time that you purchased the BTC, you withdrew that quantity to your private wallet, so maybe after 4 years you have more than 200 UTXOs, and sure perhaps the BTC price went up a lot during that time, so maybe you are going to be o.k. down the road, yet you cannot be sure about whether you are going to be o.k., and it could well be quite problematic to have so many UTXOs that are not very large as compared to whether you might have had been able to avoid those kind of situation.


Personally I am not very convinced about the idea of consolidating UTXOs as Frankolala had mentioned to be one of the potential solutions, yet consolidation could be one of the possible solutions if there are already problematic UTXOs.  Another possible solution that Frankolala also mentioned is to just wait until the value gets above a certain size (whether it is dollar size or number of satoshis) in order to transfer larger UTXOs from exchanges to private wallets (addresses).  Surely we do not want to keep large amounts of value on exchanges, yet it surely could be problematic to create a bunch of small UTXOs, too.. and each of us has to figure out ways to attempt to balance those kinds of matters, which sometimes may well involve using 3rd party custodians for some of the attempts to manage the size of our the UTXOs that we end up having in our private wallets/addresses.. We also may be better off to learn about wallets with coin control and maybe even learning about various ways to transact on second layers such as lightning network..

I have experienced such a situation, and there is no problem with leaving it on the exchange for a while. because indeed high fees will be very burdensome for Bitcoin investors with DCA. there is still a risk but it will not be that high. moreover, if the situation of high transaction fees does not occur for a very long time, the situation will improve.

after that experience, I prefer not to make a purchase first when the situation is like that. temporarily saving the allocation will be more comfortable for me. but still saving funds to be ready to spend when the situation improves.

You want me to chill out, and you are the one who made the dumb-ass and even potentially misleading assertion that DCA can be applied to other tokens... You did not even mention which token or how anyone would determine that a token would be eligible to apply DCA to it..   .. Don't get me wrong.  It could be possible that some tokens (yes shitcoins) could be eligible for DCA and/or long term investment - yet it seems quite dangerous to presume that DCA can be applied to whatever project without first figuring out the strength of the investment thesis for such coin and also the timeline for the investment and perhaps if you might be willing to invest into such token for 4-10 years or longer.

With bitcoin if you plan to invest in it for less  than 4 years, then you are likely trading rather than investing, and sure, you might enter into such trade with a DCA approach.. .. let's say for example, you were to want to invest $5,200 into bitcoin within the next 6 months and then you were wanting to get out somewhere between July and October of 2025, yet you don't have $5,200 available, yet you know that you can set aside $200 per week for the next 26 weeks in order to establish your $5,200 position, and yeah that would be DCAing into a fairly short timeline trade, and I think that would not be a very smart approach, yet I can see that some folks might want to use DCA in that kind of a way, especially if they might NOT have a lump sum available to themselves, and personally I would suggest that such a person appears that they are investing with money that they cannot afford to lose, since they are wanting to get it out within less than a year for the earlier parts of their invested amounts and the later invested amounts might ONLY be in the investment for a few months before they plan to cash out.

People can do what they like, yet I would suggest that a preferable approach for a person with that level of a budget would be to invest $100 per week into bitcoin for 4-10 years or longer and then see how their investment goes, and surely they could also supplement their DCA approach to their BTC investment with lump sum buying (at times that they might get additional cash come available to them) and also potentially buying on dips too, to the extent that they might want to hold back some of the amount to buy on dips.  I don't tend to recommend buying on dips for newbies, yet it can be a tool to supplement DCA and make some folks feel a bit better, even though buying on dips could be a bit problematic during periods that the BTC price is on an upward run, even though many of us realize that the BTC price does not tend to go straight up, but some times the dips might not come back down as much as could have had been bought by merely investing right away through more of a ongoing persistent and consistent weekly DCAing approach.


Sure DCA can be used in the context of investing however much disposable income that a person has available, such as small amounts of $50 per week, yet Saylor and Microstrategies is also employing variations of DCA since Saylor is budgeting the buying of BTC every quarter with whatever level of extra money that he (and his company) has available, and he has been doing that pretty much since July/August 2020. so even if the amounts for Saylor/MSTR is greater, he has still been employing a form of DCA.  Another thing is that Saylor is using various kinds of financial instruments to get more cash to buy bitcoin, yet that does not really change that he is (and has been) buying BTC on a regular basis (every quarter) at whatever price BTC happens to be with whatever amount of money that he (and MSTR) has allocated towards BTC purchases for that quarter, which is nearly a text book definition of DCA, even if the amounts are way beyond the budgets that any normal person would consider.

Bukele (and El Salvador) has been doing a similar thing with their buying 1 BTC per day since late 2022, even though most of us plan our DCA in the quantity of dollars (or fiat) that we have available, Bukele had decided to use BTC as his unit of account for his ongoing daily purchases of BTC.  I personally prefer weekly and I also personally favor the idea of figuring out your disposable income in order to DCA invest into bitcoin based on such determinations in regards to how much disposable income that you have available, yet people, institutions and/or governments are free to choose their own style and whether they employ DCA or not or if they might DCA with some supplementation of other methods of their ways to accumulate bitcoin through buying at various points of time or based on when money comes in and/or sometimes based on their assessments of dips in the BTC price.

Transaction fees can skyrocket anytime due to those garbage that are using bitcoin network but this not often and that is why whoever is DCAing should consider high transaction fees in future so that you don't end up using your profits in the long run to pay for high transaction fee.

This is why it is good that if you are DCAing when the transaction fee is very low just the way it is currently, you can consolidate y our small inputs into a big output for the future. You should make sure that the smallest input should be from $500 and above in one transaction to enable spend little fee in future.

On the other hand, if you are DCAing and the transaction fee become high, you can pile up your weekly DCA or monthly in your exchange account till it gets up to $500 and above excluding your transaction fee before sending it to your noncustodial wallet. Or you can leave it in the exchange till the fees goes back to normal, it is your choice. But save your bitcoin investment from high transaction fee depreciating too much of your profits in future.

It shouldn't matter, DCA brings convenience, I am sure people will choose the easy way of buying Bitcoin over the gradual pile-up of the transaction fee.

People like Michael Saylor will buy Bitcoin in one go because they have the money, even if the trasnction fee will be extremely high they won't care, but for someone who is trying to DCA, you shouldn't care either because the amount you plan to buy is small, unless the transaction fee is very high at the time.

The rich will buy 1 BTC with no problem, when the market dips they will just buy again, and people like us can only buy $50 worth of Bitcoin per week or month, because this is what we can afford, the transaction fee isn't even close to $1, in a whole year it is $12 if done every month, even if it is every week I believe it is worth it.

So any tokens other than bitcoin are called shitcoins? I don't actually mean to invest in shitcoins though. "Has Great Potential". But I really do believe that Bitcoin is really going upward for years to come. 100% . Chill out man.

How well do you Believe that other token will do too well In the next 4 to 8 years that you might want to DCA? It's true that when you're a bit sure of the token you want to invest in, you can choose to use the DCA methord on them and truth is that if thier is a project that has the potential of doing very well in the long term as Bitcoin, thier is nothing wrong to DCA on that token but we all know that in terms of the past, present, and the expected future performance of most of these projects you're looking at, non of them has a result that's relatively comparable to Bitcoin.

Thier are somany reasons why you should DCA only with Bitcoin and one of the core one is that even though Bitcoin is still volatile and risky just Like the shitcoin you might intend investing in, Bitcoin still remains the most viable and unique digital asset that has had reasonable past data you could easily look at in terms of using it for doing future projection on what Bitcoin price will look like while buying using the DCA method. Even though Bitcoin is still a reputable asset, it's still advisable to invest what you can afford to loose, this only means that for a shitcoin, if you plan holding them for the long run, you risk losing them all before you've even reached whatever amount you intend getting to.

Crazy that they think they can also use this method on those scams. Maybe they need a good shake off to see that in reality those shitcoin is not reliable and they would just waste their money on those tokens. If they really want to use this strategy they should eliminate the thoughts of investing on tokens and focus on bitcoin only. Since this would be more reliable to spend their money and those shitcoin is just nothing and it will just take their money.

Everything what you say is on point and they should never apply DCA method on those shitcoins since 100% sure that they are just wasting their money for selecting it most provably they are just making the devs of those tokens so rich and they are in dangerous situation to lose.

Only bitcoin is reliable for 4 - 10 years cycle so hopefully people could see this and ignore shitcoins in the market.