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.
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.
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]