Topic: DCA method - page 7. (Read 3604 times)

DCA method should be done in such a way that only money has to be invested in Bitcoin, and this investment has to be for a long time. There is no thought of selling bitcoins from this investment. But usually this Bitcoin DCA method will follow the basic needs of the family and with the extra money, because the more the investment, the more profitable it is because in the future the price of Bitcoin will surely increase several times more than the current price. Note that those who have done the DCA method since 2013, and have played holdings have accumulated and held the highest Bitcoins ever. So if you want to hold Bitcoin then you must hold Bitcoin for a long time and keep investing regularly.

I quite agree with you EarnOnVictor on the fact that DCA is not the only investment approach but among the most popular Nd cost friendly approach to bitcoin investment, and the most suitable for small and avarage guys who just have limited cash flow, this helps them to make the best use of the limited funds in they disposal to access the best possible quintity evaluation and accumulation of bitcoin and for a reasonable means, that can not effect the investor general well being, most times those that take this approach are the average money earners who may have no availability of funds to buy bitcoin at once and in large quantities.

DCA have helped majority's of forum members who started their bitcoin investment journey from stretch to this very point in time, and for sure we should be able to properly managed ourselves in other to be able to build a portfolio that follow an achievable investment goal and in doing that choosing the right tool to arrive at that destination is most important.

For a start and as a limited funds holder, choosing DCA approach, is most important and best approach to follow when you have limited chances of attaining your bitcoin goal both for the long term and the short term goals, so choosing the most simple DCa formula is the most appealing tool for those in such situations and times.

Yes, DCA method is the best method to invest in Bitcoin. You asked your friends to invest in bitcoins using the DCA method to accumulate bitcoins which is great. Yes, you are right about DCA method being very effective method for low income people. Those who don't have enough money to invest in Bitcoin, if they can invest in DCA method for long term then their investment amount will be quite big at some point. However, if you have a low income now, you will try to invest according to your means. Never invest more than you can lose. To be successful in investing with the DCA method, you need to continue with DCA for the long term.

I think another one of the advantages of DCA is that you can simply automate and forget about it.

That way you will simply invest more and more over time without thinking about it.

That's usually the best strategy when investing. Simply putting more and more money in it over time and never touching it.

Different opinion? I bet no reasonable opinion can be contrary to the DCA investment approach, the only suggestion here will be another investment approach and not the condemnation of the DCA approach as the approach is not the only way out in investment. Aside from this, DCA is a very good investment approach that fits in for the poor, average and the rich, it helps you average both your risk and earning possibilities. Mind you, with this approach, you should know that you would rather be conservative, so the aggressive investors or the most lucky ones might gain more than you, but still, you will average the pains of the bad market behaviours and also average the benefits of the good market behaviours which make the DCA approach unique because either way, you will never miss out.

I remember someone used to post their DCA performance every month or so on r/bitcoin or r/CryptoCurrency. Something like https://www.reddit.com/r/Bitcoin/comments/13vm33v/buying_bitcoin_instead_of_having_a_netflix/ Always shocking to see how much a small amount over a long time can accumulate with Bitcoin

DCA method is for the winners who want to earn profit by investing their money. DCA strategy works like a charm if someone knows how to follow it and it works for almost everyone who masters it.

I've been using DCA method for more than a year and I can surely say that it's by far the best method to accumulate Bitcoin or any other crypto currency for the ones with limited budget to invest on monthly or weekly basis.

One can get quite good result by doing DCA+DIP buying and surely that someone should understand the conditions of the market and its volatility. However, without understanding anything or averaging with DCA method one can still make profits with it by holding for long term.

Every investor has different plans and goals with their investments. However, investors who use the DCA strategy available in their Bitcoin investments do not need to wait for the dip season as you can buy Bitcoins at any time with any amount this way. As per your ability i.e. as per your investment capacity you can buy small amount or large amount of Bitcoin depending on your funds. When the market declines while doing DCAing on investments your investments may be cheaper on average That is, if the market is going down, you can buy more at a low price. Buy the same amount of bitcoin every week or every month regardless of the price of bitcoin and hold it for a long time.

OP, I couldn't quite agree with you.  The DCA method is meant for those who don't want to gamble.   DCA method is not only for low income people but also for those who are risk averse.
The DCA method basically means: investing a certain portion of your income, over a period of time.  I am not a multibilly owner myself but I understand that multibilly owners also follow the DCA method.  Although their investment amount is high, they invest money in several steps following the dca method. [Their investments are not long-term.] Because the best advantage of the dca method is that no matter how volatile the market is, on average you never lose.

And to avoid this loss low income people always prefer dca method.

But one thing to keep in mind for investing in Bitcoin is reserve fund. Since you will be investing a certain amount of your income over a period of time, you need to be careful not to withdraw the investment money at an emergency moment. That's why you need a reserve fund. If you can keep reserve funds, you should not face any problem to make your investment long term
The DCA approach must be long-term.

The fact of the matter is that an overwhelming majority of people whether rich or medium or poor do not have any choice except to DCA. They do not have any lump sum available to them, so it is largely a stupid-ass hypothetical to be asking which one is better when a vast majority of folks have no choice.

Sure, anyone could be in situations in which s/he gets some extra pay or some kind of a bonus or has some situation in which a bunch of cash comes available at one time, and then at that point, he has a coins to buy right away or to also include DCA and/or buying on the dip.  Having a lump sum cash available and then choosing either DCA or buying on dip are ways to delay and structure buys, and DCA delays/structures based on time and buy on dip delays/structures based on price dips that might not end up happening.. .yet of course, the amounts of the buys and the increments of the buys on the dip can be established in advance with an understanding that they might not end filling.

When DCA is regularly done as soon as the income comes in (or is known to be available), then it is not being deployed in any kind of delay (or waiting) strategy since the buys are made soon after the money comes available.

There is a certain value in buying when the money comes available, yet if a bunch of money comes available at once, there might be some hesitation to use all of that to buy right away rather than considering some of that money for DCA and/or buying on dips.


You are talking about lump sum as if it were buying on dip.  Buying on dip and lump sum are two different concepts, and sure sometimes they overlap, but if you are merely holding back some money that you could invest right away and you are waiting for a dip, then that sounds more like buying on dip rather than lump sum, at least to me.

Buddy, it's not like that, only DCA can save you or any other specific strategy is gonna fit for the perform accumulation to make healthy returns, if you are a person and have long-term plans most of the strategies can tolerate the risks and you can enjoy good returns. All you need is patience and control over your emotions be a bot to accumulate. I've even seen some newbies asking about DCA and making money in the short term. How is it even possible?

Perhaps it's good to know that you found a way to invest in bitcoin but you have to ask yourself do you really know bitcoin enough even after your investment in it? knowledge is paramount not just investing alone you can invest all that you have without proper knowledge of bitcoin and at the end you might find yourself lossing if not practiced as a long term investment.

There are tools that you might want to know about that can help you in your dollars cost averaging practice, I don't know if you have knowledge of those tools already but haven't you can indicate some interesting by asking questions and you will have answers to them.

Perhaps even after knowing the DCA method it's best to examine yourself and know how your income could be best used in the bitcoin investment.

It might be easy to practice the strategy but where the difficulty comes in is to maintain consistency to it. Many persons have started their dca but could not achieve their goal. In my opinion, no strategy is easy and no strategy is difficult it all depends on the risk tolerance of the investors. If he wants to accumulate with less risk then dca is the best method. If he wants to lump sum or wait for the dip then it is of his risk.

We don't have the right to choose what strategy an investor should use in his investment, and we cannot conclude that any strategy is difficult or easy. Each investor has a different experience with the method they have tried.

In fact, there is no harm in both methods, DCA or lump sum, in accumulating our investment assets. Actually, there is a good side to the technique of purchasing at once (lump sum) in large quantities, when we get a cheaper price. And when we want to re-accumulate our investment assets, we have to wait for the price we want and as we know, no one can predict or guarantee price movements and of course rare assets that we know are being fought over in various parts of the world.

but of course the price we want is difficult to achieve and of course we will get a much more expensive price than before and from here we can get the average price of our investment and of course we have to be patient over a long period of time to get maximum returns from this investment and the lump sum technique is much more profitable in this case because we buy our investment in large amounts.

I also agree with you, I am new to DCA. And as far as I know the best way to invest in Bitcoin is DCA, if we invest some money from our income it will give us a lot of profit, for low income people DCA is the best way to invest, because they have a lot together. Can't invest money, so DCA is very good for them.

DCA is simply increasing the sampling frequency of a function that you don't know because the future price of Bitcoin is unknown.

So, if you lump sum you basically take a single point snapshot of the function.

As you can see, it all depends on the future price to see which strategy was best. If the price goes down in the relevant period of time, DCA was better.

If the price goes up, lump sum was better. That's pretty much it.

Actually in this case there is nothing easy in my opinion because after all even though in simple terms DCA is buying bitcoin consistently in a certain amount but in the end this is also not easy because after all when we do DCA in fact it is not that easy because there must be some considerations and planning that is really mature from the start so that DCA itself is not an easy thing to do and not everyone can do it.

I personally don't really like to think it's easy because in the end, applying the theory of DCA will actually be much more difficult than imagined, especially in maintaining the consistency that we have to do so there is nothing easy in this even though the collection is through DCA.

Yeah, it's a great alternative but if someone has enough money they can just complete the both strategy of lumpsum and DCA. Personally, I'd like to do a lumpsum so that I can no longer use the money after buying Bitcoin and I'll have to be patient on it. My past mistake of selling too early probably is making me decide this way because I have learned the hardest way by doing so. But if someone don't have that much and they have scheduled receiptment of their funds, DCA is no doubt the best strategy.

True, my friends that despite having some constraints with their budgets. I've told them to DCA and I am happy that 3-4 of them have been doing it this bull run. Not to mislead, we're already in a bull run but we probably haven't seen the peak yet and there's more to come and that's why they're not yet late.

The DCA is the best key points of accumulate Bitcoin and also a easier way especially for those that are new into the crypto aspect it really help them to grow their Bitcoin gradually without having a sums amount of money at once, because is true DCA anyone who have interest on Bitcoins can acquire a lot of Bitcoin without some issues.

Furthermore, the DCA also helps those that have low capital and even those that have snottiest if incomes, but they didn’t know where to start acquiring a Bitcoins: and also some people that are afraid of investment in Bitcoins due to the risk that is involved they will not have any problem with that once they go through the methods of DCA.

DCA is the most easiest strategy to acquire or accumulate bitcoin. It may not totally be the easiest for most people but looking into other strategy of investment, it is more convenient and gives someone the constancy, efficacy and the momentum to derive a reasonable amount of starsh in his portfolio as little as we can. With DCA you don't think much to have a sizable or huge amount to Start up but with as little as you can think of, but not less than $5. Not that all other ones like lump sum or buying the dip are not important, but those ones has their function just like the body systems works hand in hand depending on each other but the sense organ are most important like the eyes,nose, ear is the DCA.