Topic: DCA, the most convenient way to increase your bitcoin as an investor. - page 7. (Read 1953 times)

Bitcoin investment is cool despite that it is a volatile asset. As long as you don't sell at a cheap price, you have not lose any dime and you can still continue to accumulate more BTC via the DCA strategy and keep holding until the price surges to the amount you feel you have earned enough profit.

Yes, DCA method is the best to invest in Bitcoin. You can definitely become a successful investor if you invest in DCA method for long term. DCA method is the best method for everyone. But if those who do not have enough money to invest can continue to invest in DCA method for long term then their investment amount will be bigger at one time.

Not everyone has the same ability, some will be able to invest in the DCA method on a weekly basis and some on a monthly basis. We must have a plan to hold the investment for a long time. Because investing in Bitcoin is a long-term investment. If you hold Bitcoin for the long term, you can definitely profit. But short term investment can lead to loss instead of profit. So to hold investment for long term invest what you can afford to lose because if you invest more than what you can afford to lose you cannot hold your investment for long. So consider all aspects and start investing with DCA method.

Personally, I consider DCA to be a strategy and/or technique for accumulating bitcoin or any other longer term assets, even though some folks will also use DCA to acquire shorter term positions and even to trade.  

In some sense, if a person were using DCA to get out of a position, so selling slowly over time, then they may well structure their DCA exit approach to completely exit or to partially exit their position.

I think that exiting needs a different mental framework, which is more in line with ideas of passive income or perpetual withdrawal, unless of course, you have some life emergency of pending death that motivates you to completely want to or need to get out of your bitcoin investment.

So, I personally consider bitcoin as a long term and lifetime investment rather than something to trade or to get in and out of, even though surely there are ways to structure bitcoin buy and sell ladders that mostly emphasize maintaining the stash and so sell orders are not structured in any kind of way to sell large amounts of BTC.

Of course, the longer that you are in BTC and the potentially higher the level of your profits, you might not be too concerned if you shave off 1-2% of your stash or even 10% of your stash, since if you might have not been cashing out for many years, you might be so far in profits that it would not make any kind of material difference to you in terms of whichof those choices to make and maybe even 10% of your stash might equal 5-10 years of your expenses...so at some point you might have so much profit cushion that any cashing out that you do still feels like a lot of money as compared to your yearly expenses. Of course, you could change your lifestyle too, in order to spend more, and surely those are discretionary choices.

So yeah, I think that DCA can get you to places of having sufficient BTC accumulation or even over accumulation of BTC, but to me, using DCA as a means to cash out comes off more as a trading approach to your BTC holdings rather than an investment approach to your BTC holdings.


Well?  You seem to have only been registered on the forum for about a year and a half, so I would have difficulties considering that you would be anywhere near to the kind of targets that I had been considered to be within the sustainable withdrawal framework.

Essentially when I came to bitcoin in late 2013, i had already been investing in other assets for nearly 3 years, so I had already figured that I was going to somewhat aggressively work on getting my bitcoin allocation to around 10%, but it took me a year or so to get my BTC holdings to 10%, and since the BTC price was low for 2015, from my point of view, through 2015, I ended up over accumulating to around 13.5%. , and then after that I established more of a laddering practice which would be price based withdrawal rather than time based withdrawal, and so I spent the next few years considering that i was in a maintenance mode.. which meant that I only sold limited amounts on the way up as a kind insurance to be able to buy back if the BTC price dipped.. so I did not really consider time based withdrawal (or come up with the formulas - that I still need to fix - until within the last couple of years). ..

so anyhow, even with my buys and my sells over the years, I consider that I have largely been maintaining my BTC holdings since I had considered in late 2014 I had sufficiently accumulated BTC and in 2015 I had over accumulated and even BTC's price moves from $450 to $19,666 and then returning down into the $3k-$6ks in 2018/2019 had really caused my allocation in bitcoin to go up to close to 80% and then drop back down to nearly 40% and then go back up again, and even now my bitcoin holding may well be over 80%, so I am considering that I am way over allocated, even though these days I consider 5% to25% allocations to be good for newbies to shoot for, if they already have investments and they are looking to allocate into bitcoin, too.  So there can be an initial allocation that ends up growing and fluctuating, but I don't really subscribe to any of the theories of reallocating and rebalancing, but instead my own approach goes along with the idea of letting your winners ride rather than attempting to reallocate them.. so who would want to sell your winners into your losers?

I just think that it tends to take a while before getting to some kind of stage in which sustainable withdrawal might start to seem feasible, and yeah, sure everyone has their own particular circumstances, but I consider that particular time-based sustainable withdrawal as a kind of tool that would be used in a retirement situation or maybe as a way to fund a separate business with a certain quantity of coins that they could obtain a budget, but there is a mistake in the tools since the withdrawal budget should be calculated based on the dollars budget rather than being calculated in BTC amounts since calculating in BTC amounts will likely contribute towards withdrawing too heavily.. ..


You seem to have the right idea rachael9385, especially since it tends to take years and years and years to really build up your bitcoin portfolio, even if you might have had been able to front load some of your bitcoin investment.  So most likely you are spending quite a bit of time in your accumulation stage prior to getting to your maintenance stage and even during your maintenance stage you might not be selling much if any of your BTC, and if you have other sources of income, you probably should be spending from those other sources first, and then perhaps at some point you might start to use some of your BTC by engaging in some price based withdrawals and/or some time-based withdrawals, but they still might not even be structured in any kind of way that significantly reduces your BTC and maybe after a couple of cycles you might start to feel a lot more options to be able to withdraw more from the BTC and maybe even some of your other income sources might be drying up (or not sufficient) so then it might start to make sense to use some of your BTC as a way to supplement or replace your income, but still the BIGGER assumption should still be that you have enough and/or more than enough so that you are not really even withdrawing large chunks of it...and the longer that you are able to allow the bitcoin to run and mature, it is more likely the 200-WMA is going to continue to go up and your budgeted time-based withdrawal amounts should be based on the 200-WMA valuations rather than based on the spot price.. of course, you could be doing both, price based and time based, so you may well have to make sure that you are not overly withdrawing an the BTC holdings are continuing to go up in value faster than you are withdrawing it.. especially if we use the 200-WMA as our valuation focus.

That's indeed true, when one is basing in DCAing there's no need of one checking the price of Bitcoin before purchasing. Because one of the reason of DCAing is because we can't actually predict the market movement. Like we can't tell if the market will continue going up or continue going down, so instead of one stressing he or her self , he or she can easily go into DCAing in order to purchase and different price interval a d avoid missing out big time , because the process of waiting for the price movement before purchasing may lead to one missing out countless times.

Very apt and well formatted. I am doubtful if this was from your brain or AI generated. The formatting looks like AI generated and the accuracy of the sentence is also a point to suspect. But I'll give you the benefit of double and maybe I will have to tour your timeline to quench my curiosity.

I don't think using DCAing method to withdraw Bitcoin is a good idea for any investor, mostly in when the investor is a Bitcoin newbie that haven't accumulated any much Bitcoin in the past. Why I do t think k it's a good idea to withdraw Bitcoin with DCA is because when the investor might be withdrawing and he's not making any profits and he is withdrawing it shows that the investor is losing. And the main purpose for anyone to invest on Bitcoin is because we want to make profits. I agreed with what you said that one shouldn't withdraw every Bitcoin he have because he/she took years to build his Bitcoin portfolio, so selling all what he has worked for isn't a good idea as once a good investor. We only have to withdraw little and hold on to the remaining and if we still have money in future to buy Bitcoin we shouldn't hesitate to do so..

So the best thing to do is to stick to your bitcoins already accumulated even after reaching your target. You shouldn’t use the withdrawal strategy just because you’ve accumulated and reached your target but also look at the market factor like checking the current value of bitcoin if it’s holding or increasing in value before you apply the strategy if you ever wish to withdraw some of your holdings at some point. The goal should be never to run out of BTC in your portfolio and take advantage of the market when it dips even after taking some profits and keep accumulating for another cycle where it may have reached another point of all time high before you’ll want to sell off some part if the need arise or if not, continue holding.

I am not really too keep on any kind of an idea of using DCA for withdrawal, and sure, some might consider sustainable withdrawal as an exit DCA, but that seems a bit misleading to me, and in some sense there is not really any need to ever completely exit BTC, so the idea of sustainable withdrawal relates to abilities to perpetually withdraw (or live off your BTC or draw an income from your BTC) once you have reached a status of accumulating enough BTC, yet better yet if you have reached a state of overaccumulation, then you can likely pace your withdrawal so that you never run out of BTC...so yeah maybe in the beginning there would be more cushion or more conservative withdrawal and then if you see that the bitcoin is largely holding  its value or increasing its  value, then you could increase the withdrawal amounts.  I do have some things that I need to fix and/or tweak in some of the withdrawal formulas in that thread and in the withdrawal tool too.

This strategy is good to use for everyone but it is more helpful for newbies. First, the strategy helps newbies to get rid of falling in love with trading or worse with leveraged or futures trading which risky and can cause massive losses. Moreover, this strategy helps newbies to gradually accumulate bitcoins with time and after several months, one or two years, they will surprisingly accumulate very considerable bitcoin for their portfolios.

As I shared that strategy is for experienced investors, not for newbies. With newbies, they lack of experience in the market and if they apply smart DCA or as you explained, a combination of DCA and buy dips, they will struggle to make their decisions for purchasing dips or wait for deeper dips and at the end, they probably will miss many dips and waste many great opportunities to buy discount bitcoin.

They can apply DCA for withdrawal or exit and don't have to predict a next ATH to take profit.
[ANN] JJG Sustainable Bitcoin Withdrawal Strategy
https://bitcoindata.science/withdrawal-strategy

If DCA investors into bitcoin are choosing DCA in order to reduce their average cost per BTC, then they are retarded. On its own, DCA does not accomplish such reduction of average cost per BTC; however, it does accomplish that a person may well be able to invest in bitcoin over a long period of time and be able to reasonably balance his investment level into bitcoin in accordance with his cashflow and/or discretionary income..


You can choose to invest a strict dollar amount every week or you can vary your dollar amount, so the amount of bitcoin that you get from your dollar amount (or the amount per dollar) will vary based on how the BTC price changes from week to week. So if you were to establish an exact dollar amount for yourself every week (such as $100 per week), then the amount of bitcoin that you got each week would vary, even though you choose to keep the dollar amount to be the same every week.  There is no requirement that you have to keep the dollar amount the same each week, and surely if your cashflow varies a lot you may or may not decide to vary the amount of BTC that you purchase in accordance with your cashflow.. there can be quite a bit of discretion in regards to how DCA is employed and still be considered to be a DCA approach..

i personally like the idea for beginners to try to do weekly DCA, yet of course, individual circumstances may or may not cause weekly DCA to be practical, so individuals have to try to figure out how frequently they are using DCA in the event that they try to follow some kind of a strict DCA approach, and surely DCA can be accompanied by other BTC accumulation practices and still be considered DCA, such as buying on the dip or lump sum investing.


Sometimes old threads do end up getting revived, and surely DCA is a popular topic throughout various threads in the forum.


You are not incorrect Shadiq, yet you seem to be wanting to apply DCA to a trading approach rather than to an investment approach, since you seem to be so focused on how profitable that you are, as if you are eager to sell your bitcoin as soon as your profits reach a certain threshold.

It seems to me that with a bitcoin investment approach, then there may well be a 4-10 year or longer investment timeline, and surely there would be a hope that the BTC investment would be in profits by the time the investment gets to a more mature level, yet the investment timeline and even the timeline for someone's accumulation of bitcoin (and establishing a bitcoin position) could well take 4 years or longer (unless they are able to frontload their investment), so for example, if someone is investing into bitcoin for more than 4 years and using weekly DCAs of $100 per week, by the time 4 years comes along, they would have had invested right around $20,800 (assuming that they consistently DCA'd the same amount for that whole time), so of course, they are going to have differing timelines on each of their weekly investments and the earlier investments would have at least 4 years, but the later investments would not have had run as long of a timeline, so there might also be some period of time in which the person might stop DCAing and just let the investment ride for a while before deciding to start to sell, and they could potentially start to employ sell tactics that are based on BTC prices or they could employ sell tactics that are based on time.. so selling a certain amount every month or quarter or even once or twice a year.

There might be a bit of a presumption that long term, the BTC holdings would be in profits, yet surely being in profits is not guaranteed, even though any investment choices are usually premised on the idea of being in profits further down the road and potentially having more options based on having had invested into bitcoin as compared to having had chosen NOT to invest into bitcoin.

So ultimately, Shadiq, even though you are focusing on level of profits, it seems that the more healthy and practical way of considering a BTC DCA approach is to figure out how much discretionary income that you want to invest into bitcoin and then to be able to figure out some kind of timeline that you might regularly buy bitcoin within your discretionary income and perhaps reassessing at various points down the road in regards to how your accumulation of BTC through DCA might have had put you in a better position.. perhaps 4-10 years or longer as compared with someone who might be planning on turning over the asset more quickly, such as your seemingly trading (or short term) way of framing how you might treat (or think about) potential profits that come from DCAing into BTC.


There is no such thing as DCA and smart DCA.  You seem to be referring to combining DCA with buying the dip, which may or may not be a good idea, but it is another way of DCAing, since you can accumulate BTC by three buying methods, DCA, buying the dip and/or lump sum buying.    There are also people who believe that trading or fucking around with shitcoins is another way of accumulating bitcoin, which sure it may well be true that those kinds of trading techniques could result in being able to buy more BTC, they don't really fall into the more strict categories of accumulating BTC through any of the three buying techniques, and if you alter your DCA in order to include buying on the dip and/or lump sum buying, you are not necessarily causing your DCA to be "smarter" instead of attempting to include one or two other styles that may or may not end up being a smart way to to about your BTC accumulation (if we presume that one of your goals might be to accumulate more bitcoin or perhaps more bitcoin at a lower price, which may or may not end up working out) - including that some people may not even have opportunities to employ lump sum investing, since some people do not have any lump sum available, and so some of those folks who don't have lump sums available, then their ONLY choice would be to DCA, so if they are trying to be "smart" about the way that they employ their DCA, then they would be attempting to make sure that they are establishing their DCA level within the level of their discretionary income and also making sure that they have various kinds of back up funds, such as emergency funds, reserve funds and float.. so the smart part of DCAing would mostly come from how you manage your own personal cashflow rather than your fucking around with trying to act like you know which way the BTC price might go, which you might and you might not... which surely is not a very smart way to go about things if you are trying to act like you know when in the whole scheme of things you may well wasting your time and largely guessing based on too many presumptions that you know more than you do.

DCA is a method with a lot of potential for everyone. It allows investment to be set at an average price so it can be used by everyone. It is more beneficial for beginners because those who are experts in trading or holding can make better decisions by doing various types of research and are able to make higher profits. But it is not possible for newbies to make accurate predictions because they don't have a deep understanding of the market and Bitcoin, so they will leave everything to their luck and invest. For this DCA has many impotent methods that can protect them from major losses.  But everyone should follow DCA for fund safety

This best explains the kind of philosophy one should take into its mind when one is going for such type of investment. The DCA approach is not designed for those who panic whenever they intend to invest in Bitcoin, not for those who are unsure of the process and not for those who are greedy. Everything boils down to one's mindset since it will greatly influence the nature of decision which will be made by the investor. DCA is yet one of the best approaches to a sustainable bitcoin investment.

The greater the capital, the greater the profit margin and vice versa.
It only remains to determine whether the investment chosen is “High risk/High profit” or “Low risk/Low profit” you can compare BTC or GOLD.

The profit margin will be seen from this difference that we know, even BTC can be profitable faster in the short term including the decline can be more severe to make you lose.
While GOLD price is stable you need longer for big profits.

Many of us choose BTC as a long-term investment, we have a target selling price in the future, if we still lose, just HODL until bitcoin goes back up.

Actually, the amount of profit obtained from an investment is determined by how appreciative the asset is and also the level of capital that was invested. For example, two people can invest in a very appreciative asset but one might earn more profit than the other person either because his capital is huge than the other person. But like you said, it's better to invest the amount you can afford to risk holding for a long time because if you can't hold, you will not get much profit and you can even sell at lose.

Yes you should take it positively for an investor to check the value of Bitcoin deposit with DCA which may encourage him to deposit more as he can take aggressive buying opportunities during the low price of Bitcoin which can increase his stack and make his portfolio decent in short term.When you continue to accumulate Bitcoins at regular intervals, it is recommended to stay with the DCA method for the long term regardless of the trend. It is also important to increase the elasticity of your cash because that floating cash can act as a separate safety net for your investments.

DCA is indeed a good way to invest by consistently increasing asset ownership. but the main problem is the readiness of the investor himself. DCA will be suitable for investors with long-term planning and the calmness that has been owned.
financial management used for asset purchase allocation must also be good. otherwise, it will only destroy the long-term investment plan that has been made. everyone must know the limits of their financial capabilities that they can place between living needs and investment.

I believe DCA helps people invest, but they also have to prepare themselves first. it's not as easy as sheltering in a rabbit piggy bank.

Checking price before buying is a mandatory step if you don't set up a bot that automatically buy bitcoin for you and does not care about price. If you do your DCA manually, you have to check price. Want it or not, you must check price or see price when you are making your order.


Nothing is wrong in your clarification but if price during a single market cycle, already assumed doubles, it's risky to make your DCA at that time. It's better to wait for correction to buy bitcoin and in the meantime, you can prepare your capital for DCA.

If your plan is DCA weekly with $100, but if you have to wait for correction like 4 weeks, you will make a purchase at $400 when you do it with a correction. It's not bad in my opinion and I am quite sure experienced investors will wait for corrections to accumulate cheap bitcoin.

Or you can do both. One part is DCA no matter of price, just buy it weekly. A second part is waiting for correction and buy more. You are combining DCA and smart DCA.

I also think checking price before buying Bitcoin goes against DCA strategy. DCA means investing fixed amount of money regularly no matter price. It is about investing automatically and not making emotional decisions based on market ups and downs. By not worrying about price we avoid delaying and missing chances. Buying low can lead to bigger profits but waiting for perfect moment can lead to indecision and lost opportunities. DCA helps us invest steadily and reduces  impact of market changes. It is a way to invest smartly and avoid making emotional decisions.

It's hard but I think they planned it well and they've foreseen any situation of the market, good or bad, they'll follow the plan to keep on buying. But it's true that with the big purchases that they make, an individual is going to have a hard time being consistent in DCA. Anyway, it's proven and tested that DCA is a convenient way of being invested in Bitcoin and if you have a long-term plan, it is the way to go. The thread was made a year ago and I think that even as years pass by, this is still going to be inline with everyone's plan so the style will never get old.

It's actually a case to case basis, let's say those that have done DCA several years ago as they were ahead of time to us, they have both protection from losses and at the same time got higher profits. But I am talking about years ago and it's applicable today but if you think that it's going to prevent you from making decent profits, then just lump sum.

The moment you start looking up the price before you buy or invest in Bitcoin, that’s no longer the DCA strategy. At least, not the way I understand it.
It’s dollar cost averaging which deals with, you having to look up your available funds, decide that which is spare to you to take up Bitcoin investment and go ahead to invest. The price at the time of investment isn’t of any concern here.

Yeah, there are more chances to getting higher profits by buying low but, waiting for price to dump could result in two things:
You either get to spend that money before price dumps or
You end up procrastinating on when and see price pump without buying.

DCA strategy is supposed to solve all that procrastination and missed opportunities.