Topic: DCA, the most convenient way to increase your bitcoin as an investor. - page 6. (Read 1953 times)

The employment of DCA practices is not determined to be worse than buying the dip merely because you might not have a lot of money.

In other words, waiting is not a good investment practice especially when it comes to an asset like bitcoin, except if you have already accumulated a lot of BTC.

Anyone who is new to bitcoin or is perhaps in his first cycle of bitcoin should probably just get into a practice of buying regularly and buying often, even if you might not have a great budget, and especially if you had already designated some money to be for bitcoin, then if you are fairly new to accumulating bitcoin, there is no real material and/or meaningful benefit in waiting for dips rather than just buying regularly.  You actually may be hurting yourself and also hurting your accumulating psychology to be trying to figure out if there may or may not be a dip and also figuring out if the dip is BIG enough rather than just buying soon after you had designated the money to be available for bitcoin.

Presumptively any money that you invest into bitcoin is with your disposable income and also you are planning to invest for 4-10 years or more.  If you are investing in a timeline that is less than 4 years, then you are trading rather than investing and you may also be gambling by using money that you feel that you need rather than actual disposable income that can be set away for long term investing, which is the better of appications of DCA strategies for investing long term rather than for trading (even though you could use it for trading as well, DCA is likely better to be used for long term investing).

It's not actually losing the opportunity, but it's more on finding the biggest opportunity to buy bitcoin at a huge amount. So it's not surprising why a lot of us prefer to wait for the dump first before putting a purchase.  But if you have a sufficient amount of funds ready to buy regardless of the price, then never hesitate to buy. It's certainly an edge if you buy bitcoin at a regular basis.

Anyone who is regularly buying BTC based on their incoming cashflow is engaging in DCA, and the DCA period does not need to be regular in terms of time intervals nor in terms of amounts, yet one of the main reason that people try to suggest to engage in DCA regularly, persistently and consistently and perhaps even to schedule some automatic DCAs (I prefer manual DCA) is so that the accumulator of bitcoin is acting on a regular basis to buy bitcoin rather than just theorizing about it, failing to act and potentially waiting rather than buying.

I have no problem with the small purchase amounts, as long as there are ways to keep the transaction fees reasonable and also to make sure UTXOs are not too small.  It is not good to have a whole bunch of small UTXOs, and that could cause them to become unspendable, so it may likely be better to keep UTXO size in mind.. perhaps even at least 200k or larger, when possible to accomplish such.. so someone who is buying $1 per day, may need to keep money on an exchange for 6-12 months before transferring to a private wallet in order to make sure the UTXO is not overly small, which is a preventative measure regarding both fees today but potential fees in the future.[/list]

Of course, DCA makes it flexible for you to invest gradually with ease and that is why it is important for whoever is starting his bitcoin journey to adopt DCA accumulating strategy. If you want to hodli for long and survive all emergencies that will come your way during your bitcoin investment journey, you should have an emergency funds to take care of real emergencies when they come. Getting a second means of income is good because it will make you increase the amount that you are using to DCA and that will make you reach your bitcoin target quick.

It’s simply the best strategy but Like I love to emphasize, one should make sure that they have settle their problems first before bringing any money into cryptocurrency, I usually see many investors most especially newbies actually emphasizing or disturbing themselves on buying every dip as it is the perfect DCA method but my advice is staking up bitcoin with any strategy should be in compliance with once risk management. Once there is no proper risk management then every strategy wouldn’t work out.

I like the fact the you set out funds for daily and emergency needs this gives you freedom or flexibility to hold the coin for as long as forever, some who doesn’t have any emergency funds would be in panic during bearish times and could even sell off at loss sometimes

DCA is for everybody and not just for people with weekly/monthly income. Sure it would be easier for people with a steady income to dollars cost average but that shouldn't stop you from using this strategy to invest in Bitcoin. You can start with as little as $1 and with years of doing this, you would had accumulate so much Bitcoin that you mightn't believe it would had been possible if you were being told from the beginning that you can achieve that amount. Just don't be too greedy when doing it and using someone else budget to give yourself targets. From you pocket money, you can dollar cost average when you have money into Bitcoin. It most not always be a particular date that you have to buy, here are some advantages of DCA in my opinion.

Excluding the normal advantage we have of DCA, it can also

• Gives you a target to fulfil in life, having a target of investing a particular amount can help you achieve your goals of owning Bitcoin
• Helps motivate you to hustle more and possibly increase your DCA amounts

You don't have to pressure yourself though because if you can't keep up with DCA, you can always buy Bitcoin whenever you have the money to do so and not put yourself under a pressure to invest at a particular time.

Like you I am doing DCA and keep depositing every month even though I am new. I became more interested in the DCA method because it is so easy to accumulate bitcoins from disposable money after meeting the daily needs of the family. To maintain a strong cash fund to operate the DCA over the long term without disruption to investments during emergencies. The more you can increase your cash fund, the more likely you are to increase your bitcoin accumulation and become a strong holder.

It's well agreed that DCA is by far the most proven strategy to accumulate bitcoin over a long period of time.
The benefit is that you get the best average buying price and this applies to everyone using DCA at any point of time.
It's suitable for newbies as well people who don't want to get into the hassle of trading regularly.
The most convenient and effective strategy till date and I have been using it myself for the last few years.

Dollar cost average (DCA) is not for everybody, because if you don't have what is bringing funds into your account monthly or weekly, it will be difficult for you to accumulate bitcoin in your wallet but if you have what is giving you earning monthly or weekly, I think Dollar cost average (DCA) is good for you to apply for your bitcoin investment. New or old users can make use of Dollar cost average (DCA) to accumulate bitcoin in their portfolio, because is the easiest way people use to accumulate bitcoin fast in their portfolio and it will create a favourable opportunity for such person to earn a good income in the nearest future.

Everyone usually have their own strategy while investing into Bitcoin, it's not a bad strategy for an investor to wait for the price to drop before they can buy some Bitcoin. If for example, someone wants to buy Bitcoin at $52k, it's not a bad target price, with the current market situation it's very possible that price can still drop to $52k, so the investor only need to wait but while waiting, I still advise that the person can use the DCA strategy to start accumulating small fractions until the expected price is reach, then he can buy a huge amount at that price. Like you said, the market is very volatile, if an investor keep waiting for a huge price dip, the market can keep surging even higher than the person had expected. So, instead of waiting for a huge dump in price, they can still buy small fraction.

People who always wait for the price of bitcoin to dump are those who get panic of the market when the market goes dip after they might have bought bitcoin,  I think people who wait for bitcoin price to drop are not serious investors,  all what they think about is just to make quick profit. Waiting for the price of bitcoin to fall to buy bitcoin is something that might keep some people waiting and they miss opportunity of time which they can never get back again.

People who always check the price to invest bitcoin won't get it right because volatility will always be a reason for them to fear. Their is no perfect time to invest bitcoin because their is profit to any bitcoin that is bought at anytime.

The DCA method is a strategy that is quite effective to apply because someone can accumulate purchases whenever they target. This method is also quite useful for some people who have unstable and large finances because it has the opportunity to increase the amount of bitcoin holdings we have. Until now, I still use this method because I believe this is a fairly effective strategy. But if you talk like MicroStrategy they will have it much easier because they are able to accumulate purchases in the amount they want.

DCA is also needed by everyone and is not only limited to beginners and when someone has confidence in Bitcoin then deciding to find a way to accumulate is an obligation that they must do. There are many ways to accumulate because there are several ways that can be done and that is why we believe bitcoin is the right choice to invest.

Though what you are saying here sounds logical no doubt, but I don't actually think it's proper to time the market before making a purchase, because by doing so, you might miss a whole lot of buying opportunities that might comes in handy, so in my own perspective I prefer buying and acquiring Bitcoin through the DCA accumulating strategy regardless of it current price and I might decide to buy aggressively when there is a strong dip in the market, to maximize having more units of Bitcoin at a cheaper rate, only if I have the financial leverage to do so, but I wouldn't do it, I mean buying aggressively during a dip if it's going to put me in any difficult situation financially.

Lastly, I think that the primary purpose of the DCA accumulating strategy is to buy at your own convenient, so if that cannot be achieved, then I don't think that you are utilizing a proper DCA method, just as it should have been.

The DCA method recommends an investor to keep buying in any price trend to accumulate Bitcoin because it can be much easier for you when you regularly do it in the long run only with the hope of future profits. By depositing Bitcoins in the DCA method you can accumulate digital wealth for future generations that will continue to accumulate for lifetime and your children will continue to benefit from it just like real wealth. The biggest advantage of DCA is that it can be a universal method to deposit a part of the disposable money left after meeting the household's daily needs into bitcoins on a weekly or monthly basis.

You don't need to worry about the Bitcoin price going up or down to invest in the DCA method. Using this technique we can purchase bitcoins in small increments. We can say that, "grain of sand make up continents," just like accumulating tiny amounts of bitcoins at one time turns our investment into a large one.

By adopting DCA strategy, we can buy bitcoins using the same amount of money even in the deep season or bullish season of the market, that is, the aim of this method is to increase our bitcoins. Moreover, it can be considered as one of the best methods for those who are still hesitant with their investments. Because by adopting this method you don't have to buy a lot of bitcoins at once you can start with just as much as you can afford i.e. even with small portions. Buy bitcoin regularly and hold it patiently for a long time.

In fact checking the btc price of bitcoin is what we often do so that we can maximize its buying opportunity if the current price is low. But that doesn’t mean that we won’t buy anymore if the price is quite high. That’s where DCA should be applied. You buy regularly regardless of its price. But if you can timing buying bitcoin while there is price correction, it would be a lot better as you can also acquire more bitcoin which means bigger profits in the future as well.

I don't think checking the price will be a course of discouragement for someone who really wants to invest. Looking at the bitcoin price is supposed to be another motivation for someone who is willing to hodle bitcoin for a long time. However, when I see people waiting for the price to dump, I always think they are losing the opportunity of buying bitcoin at that time because you may think of waiting, and since the market is volatile, it will rise again.

The DCA approach is a better strategy with a long term prospects , not forgetting the bear and bull being part of the long cycle. Most persons are getting it wrong when they say long term investment, that doesn't mean investing and ignoring but rather a steady/consistent accumulation over intervals. The DCA makes investment a lot easier, aswell reduces the impact of volatility due to buying at both phases of the market.

There's no doubt that DCA is the best method to accumulate Bitcoin, you'll just keep buying without worrying about short term price speculations. Your overall goal will be to keep increasing your bag and watching your ROI increasing at every bull run. This method is very helpful for average income earners who have the desire to grow their investment funds, they know that with DCA they don't have to start buying with a huge amount of money that they can not afford.

There are generally two approaches we can take to successfully hold an investment for the long term.
1. We shouldn't use money to make investments long-term that you can't afford to lose. That is, in long-term investments, you use money in such a way that losing money will not affect your quality of life or your personal life. We can consider this money primarily as unnecessary money. If we use the necessary funds to invest, we may be forced to liquidate our investments involuntarily. It may be at a loss or at a small profit, which is equivalent to trading. That is, use money that you are prepared to lose to invest for the long term.

2. Prepare emergency funds for emergencies to make investments long-term. Our standard of living is not always the same. Unexpectedly comes the urgent moment which we need huge amount of money to cover. If you invest the bulk of your alternative income and don't consider a fund, where do you get cash in an emergency? Then you will have no choice but to sell your investment. You may have suffered a loss from there and your investment has been wiped out. Hence, emergency funds play a very important role in prolonging the investment.

So we should adopt proper planning to make investment successful. I think we should keep an emergency fund ready even if we reduce the amount of money we invest. Its benefits can be realized in adverse moments of life.