Topic: DCA method - page 3. (Read 3547 times)

^ Couldn't have said it any better myself.   Isn't it kind of crazy that there's still people buying in to this shit, I mean it's not 2017 anymore, and there's countless amounts of history to prove 99.8% of all that shit was just that, bullshit.  Good on ya for taking the time to try and educate.  I got lucky having buddies who know better who taught me well.  I guess where there's unimaginable potential profits, there will be unimaginable ignorance.

Kind of crazy how so many seem to just be learning about DCAing in this thread.  Yikes.

Don't fuck around with shitcoins.  DCA works for assets that have long term strong fundamentals, and shitcoins do not have that. Don't be applying DCA to trading and/or crappy projects and expecting that you are going to be able to invest long term into crappy projects that are, at best, a trade that you get into and out of.

With bitcoin you can invest on a 4-10 year or more time line and have fairly decent confidence that bitcoin's price trajectory is upwards during that time, but you cannot have that kind of expectation with any of the shitcoins.  So, don't be misapplying the benefits of DCA to shitcoins, where you could well get screwed pretty badly when the shitcoin is ONLY spiraling downward and you are continuing to buy it every week.  At least in bitcoin, you can consider that your ongoing buying of it, even if it is spiraling downward in price , it still  has decently good chances of recovery, and even greatly performing in the future 4-10 years or longer.. Yeah, even with bitcoin it is not guaranteed to be profitable and/or to have a upward price trajectory, yet the odds of bitcoin having an upward price trajectory 4-10 years or longer down the road is way better than any of the various thousands of shitcoins that try to act as if they are like bitcoin when they aren't.

Good thing is you can do DCA even in other tokens not just Bitcoin. Adding research to any other token that has great potential will be a great help and to do DCA which has also risk but you do believe in the project itself is enough. Invest what you can afford to lose and wait for years to profit.

When people have understood that Bitcoin investment will be very good for their future, of course they will take advantage of the declining conditions to continue collecting Bitcoin according to the income they have and will not be influenced to sell in these declining conditions and maybe those who are new to Bitcoin and are learning about this investment may panic but if they have someone who can advise them, of course they will continue to hold their assets to be able to wait for profits when the price increases again.

When someone invests, of course they will find things they could not have predicted before and as the investment they make progresses, of course they will have the right way to avoid things they do not want in running the investment, but they must still invest Bitcoin according to the income they have in order to achieve their investment targets.

In this case, of course, the assumption you convey is correct, for those who already know the pattern and continue to update the BTC price history per time, I think they will be more relaxed seeing the decline a few days ago and will not hesitate at all to continue collecting BTC by installments or DCA. There is a good point that I take from you, of course it is very relevant if someone will feel very comfortable investing if everything is in accordance with expectations, both regular monthly income. But other times and opportunities are predominantly not the same for each person's condition. This is the real obstacle.

"I couldn't agree more with your assertion. Stability and continuity in the investment approach, regardless of the position of the Bitcoin market, is the key to success in this sphere. Buying on consolidation and investing at fixed intervals lessen the timing risks and make the investor disciplined.

While timing/waiting for the dip could also potentially be a recommended approach for the Bitcoin market, especially for the experienced investors, it is always advisable for newbie investors to play it out in consistency than timing. This approach helps one to gain more insight on the market, and Management Delay promotes patience.

It was also well captured by research which shows that market timing is hazardous and that compounding worked better since investment accumulations are normally steady in contrast with market timing speculatzions.

This is why the DCA method can be one of the most effective ways to make us comfortable in investing without having to be burdened with the risks that exist because we are ready to lose because in the end knowing something like this from the start especially where we already know the method that we think is comfortable enough to do then this will make the situation better.

Keep in mind that you should also consider the reasons why the long term should be chosen over the short term because in the end when the DCA method you choose as your investment is clear this needs a continuous process and time so we cannot consider the short term as a consideration because it actually makes you indecisive so just focus on the long term by continuing to invest every week or month according to your readiness because in the end doing with the short term will only make you think of selling when the price is considered profitable and this will become a new problem where you cannot buy back because you already feel the price is not profitable to buy.

So that this does not happen, it will be more worth it if the long term is chosen from the start to make you feel comfortable without thinking about many things in the investment you are doing.
 

What you are saying is not quite correct, since DCA is generally better for more people because it allows for better management of their cashflows and not because they are delaying purchasing with lump sump funds that they already have, sure even a person who has lump sums available might choose to ONLY invest a portion of the lump sum funds right away and he might structure other portions of such available funds with DCA and/or with buying on the dip, so of course, anyone who has more funds immediately available has more options regarding how much to buy right away and how much of those funds to defer purchasing through DCA and/or through buying on dips.

DCAs that are authorized through receipt of income could be considered as buying right away with funds that come available, and sure whenever funds come available, if they are thereafter self-authorized to be used for purchasing BTC, they can be authorized to buy right way or they can be deferred by further DCAing out into the future and/or by buying on dips. 

Part of my point is that it cannot be completely known if buying right away versus employing some delay of buys would be preferred, so there is a bit of discretion in that, even though frequently we know that if someone is new to bitcoin, they should be prioritizing buying BTC regularly, ongoingly and persistently, so they need to be careful with any strategies that overly defer their investment.. which kind of goes back to the expression that time in the market is better than timing the market, yet since bitcoin tends to be so volatile, there frequently are opportunities to buy on dip, yet dips are not guaranteed either since overall BTC price trends have tended to be upwards.


I agree that a lot of value comes from just buying regularly and at whatever price, yet I am also not opposed for guys (even newbies) to be holding some back for buying on dips, since it can feel good to buy on dips, yet some guys (including newbies) seem to get too greedy or read too much importance in regards to buying on dips as if it were preferable to buying regularly, persistently and consistently.. especially in their first 1-2 cycles (each cycle being  4 years), and really it is likely not really that big of a deal to buying a lot of BTC at whatever is the going price when the money comes available rather than waiting around for dips that may or may not end up happening, so the guys who are regularly and consistently buying are likely ending up in a much better position after 4 years or longer of employing such practices rather than guys fucking around too much with waiting for dip techniques for dips that may or may not end up happening.

Sure, but what if you instead of simply buying a small amount many times buy a large chunk right now?

You would be saving in fees that exchanges make at least, that's a win.

And the thing is that no one knows what the future price will be so you can win more or less the same anyway compared to DCA.

I guess putting a name to it, DCA, makes it sound scientific or something. It's just buying a bit frequently. That's all.

The DCA strategy is more reliable and less risky than the direct purchase strategy, the majority of Bitcoin investors prefer this strategy because they will never know what will happen after buying, whether the price will go up or even go down. When buying periodically or using the DCA strategy, investors can buy when the price is low or when the price is high, in the end they will get the average price of Bitcoin and will not get trapped psychologically because they will not be too anxious when the price fluctuates significantly.
Simply put, you can invest while relaxing because you can collect as many Bitcoins as possible in the long term without worrying too much about price changes in each period.

That is the reason why the DCA strategy has made it very easy for anyone both those that has large amount of money and those that doesn't have to come in terms with Bitcoin and as well become a beneficiary of the true potentials it holds by investing only the amount you can be comfortable with either weekly or monthly irrespective of the price points and hold for as long as possibly 4 to 10 years or more. There is no such word like short term investment in Bitcoin but rather it should be referred to as trading for a short term profit maximization over short frame of time. It is gambling than investing when you buy Bitcoin at the dip with the intention of selling when in bull, because you can buy now and the the market might dip further.

DCA is a very popular strategy among all investors these days. By adopting this strategy we can buy bitcoin consistently at a fixed price in any market situation. The bottom line is that investing in this method means you don't have to worry about any market conditions as you can buy bitcoins at any moment with the funds you have. DCAing is easy for everyone to invest in as you can make bitcoins in small chunks weekly or monthly as per your ability. Since In this system, investors invest in small amounts of Bitcoins so that if held for a long time, it will grow in size, meaning you will have a lot of Bitcoins.

That is why it is said to invest only as much as you can afford to lose. Moreover Bitcoin investment is not that you will be able to earn profit from it just by investing and Bitcoin is not a get rich quick scheme. Bitcoin investment is likely to be successful in long term but short term investment can be profitable if you buy large amount of bitcoins at once during dip season and sell it during bull season.
The problem for those who sell their property to invest in Bitcoin and sell other things to invest in Bitcoin with the full amount is that they cannot pay enough to cover their family expenses i.e. they are financially vulnerable. As it turns out, in the end, they have to sell investments in Bitcoin before reaching their goal. So before investing ensure your own source of financial income from where you will be able to sustain your investment with the remaining money after meeting the family expenses.

I agree that everyone should make their investment based on their financial status and capabilities. Someone doesn't have to follow someone else's investment pattern because they might have a different budget and capital and yours might not be able to match that. So one should see how much money they have, and how much they can arrange for their investment and they should plan their DCA according to that.


That's a common mistake among new investors. They don't have proper investment plans, they invest every money they have in Bitcoin hoping to get quick profits whereas Bitcoin investments are usually good for the long term because the price in the short-term is more unpredictable.
Some even sell properties and other stuff they own only so that they can invest the money in Bitcoin. I believe that shouldn't be done unless they can afford to do that and won't have any financial problems in case the price goes down after they make their investments.

I wouldn't say it's the cheapest. It's not like other strategies require anyone to invest more than you would by doing the DCA. The amounts you're willing to invest and the strategy you choose are two, separate things.
In terms of being the easiest. I think the easiest strategy is just to make a one-time purchase and just hold forever, it doesn't get any easier than that. But the DCA is probably the most convenient and easiest to execute among all the active strategies.
The trickiest way is to know when to cash out (if ever).

Well said mate, and to add up the DCA method is effective because Bitcoin itself despite it's ups and downs is always moving forward and this makes the DCA method even more preferable because you just get to keep buying and having it at the back of your mind that you are getting somewhere without stressing out yourself to evaluate the market price although I believe some investor that follow up with the price fluctuation are at advantage because they get to know when there is a Dip in the market and buy even more and still maintaining that steady flow of consistency.

There are different method that are also effective when saving up Bitcoin as investment but in all I believe DCA method is practically the easier and more cheaper because you can start with whatever you have as set it as a consistent value to which you buy every  week, twice monthly or once depending on your financial stability and at end HODL up the investment for long term as it's bound to yeild good profits overtime.

Very good explanation, my friend. There are many advantages of this DCA strategy, especially if you are still a beginner. This strategy has also been proven and is very effective for those who intend to make long-term investments. In addition, this DCA strategy can also be effective in having bitcoins without having to bother determining the right market time and of course this is also to minimize the risk of not investing large amounts of money at peak prices.

Bitcoin is increasing every year, not everyone can buy bitcoins in large amounts or not everyone has a lot of cash ready to be disbursed to the market but with the dca strategy we can pay in installments this is the advantage of the dca strategy. Because with the dca strategy, more and more people can reduce the habit of shopping here and there and then invest it in bitcoin assets.

I totally agree with you. DCA strategy requires a common man to maintain a mindset of consistent and continuous depositing from his discretionary income and tend to manage it for the long term. An ideal method for people with low income and if an investor accumulates Bitcoins by following DCA along with his job or business, long term deposits of any amount can result in a large holding.

Another one of the advantages of depositing Bitcoins with DCA strategy is that investors get the freedom to deposit any amount and there is no stressor. If one cannot save one month for urgent needs, he should tend to save the same amount later. According to expert investors, if you want to reach the desired goal by applying the DCA method at regular intervals, you should create a backup fund so that there is no hindrance in the long-term investment. Keeping the maximum tendency to avoid the cruel tendency of withdrawal.

DCA is a very popular strategy for Bitcoin Investors and has proven to be very effective. The goal of the DCA strategy is to accumulate Bitcoin consistently over the long term without worrying too much about price changes in each period. This strategy is very helpful for those who do not have a large capital to start investing, they can invest at any time with the capital they currently have, the price difference that continues to move will get Bitcoin in different amounts. The DCA strategy is also an attractive option for those who do not have time to pay attention to market price fluctuations due to being busy with their daily routines.

Probably this is the most famous and popular strategy of investment for acquiring Bitcoin. Everyone talks about this DCA method since some years ago, but when I started my journey here it wasn't a thing yet. DCA is a decent method indeed, but I don't have any experience with this, because my method was different back then. I just did my best to accumulate most coins as possible from online paying tasks. Bitcoin was cheaper, so I got decent amounts of satoshis by joining different virtual offers such as faucets.

If I did DCA back then I would be pretty rich, but the point is that I was young, didn't have money to invest and no one around me was willing to adopt Bitcoin on that moment. Probably if DCA was already a shared strategy on those days I could have found a way to execute that for real or at least convinced a familiar to do that for me.

Besides Bitcoin, this strategy can also be applied on stocks market with success.