DCA, the most convenient way to increase your bitcoin as an investor. - page 8.

Shadiq

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Quote from: Antotena on October 10, 2023, 12:51:37 PM

DCA is good way of buying bitcoin notwithstanding whether you are new or old, whether you have money in large amount or I'm low amount. The advantage of it is that, it will reduce losses that may arise when the market fall when you have bought your bitcoin, it saves you from buying bitcoin all and then later observe that the market hs gone down below where you bought when you can actually buy more cheaper at lower price.

As far as I know about DCA method, DCA strategy prevents you from making high profit and high loss. That means DCA strategy will not allow you to make excessive profits and will protect you from excessive losses. For example, if you buy four weeks at $60, $65, $70, and $75 principal, your purchase price under the DCA method would be $67.50. Now even if you sell at $70 you won't make a loss, whereas you had to buy at $75. That is, DCA method prevents you from high profits but protects you from losses.

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Quote from: Charles-Tim on October 09, 2023, 05:20:24 AM

Some investors may speculate and some can think that the price of bitcoin may still decrease, they can because of that not invest at once but start to DCA in a way that if their analysis or speculation is favoured, they will be able to buy more at a lower prices. Some investors will even buy more when the price of bitcoin becomes lower and some investors will invest all at once after many weeks of DCA when the price get to a lower targeted price.

With Dollar Cost Averaging DCA, if people apply it properly, they will not need to speculate the market. DCA helps them to purchase on a regular time frame as they plan ahead of their investment.

By avoiding speculation on the market trend, they will reduce risk of being either panic or FOMO and don't need to find perfect prices for their entries.

Quote from: Wiwo on August 18, 2024, 10:05:30 AM

Very well said Charles, I have used such formula in my bitcoin buying process sometimes a d it do work for me, in the sense that I try not to put everything down in the market at once, and once I notice that if I bought bitcoin, I always give at least a week interval before I visit to the exchange again to know if the price decrease further so that I can buy more.

With DCA, you only need to plan your investment and purchases on daily, weekly, monthly or longer time frames or just use your available investment capital for purchase anytime you have it.

Websites for Dollar Cost Averaging DCA

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Quote from: Charles-Tim on October 09, 2023, 05:20:24 AM

Quote from: Poker Player on October 09, 2023, 04:14:02 AM

Overall you give good advice, the only thing I would add is that DCA is also good for people who don't have a big income and therefore can only invest what they save from their paycheck. For most salaried people. I am not a newbie and I do it.

Some investors may speculate and some can think that the price of bitcoin may still decrease, they can because of that not invest at once but start to DCA in a way that if their analysis or speculation is favoured, they will be able to buy more at a lower prices. Some investors will even buy more when the price of bitcoin becomes lower and some investors will invest all at once after many weeks of DCA when the price get to a lower targeted price.

Very well said Charles, I have used such formula in my bitcoin buying process sometimes a d it do work for me, in the sense that I try not to put everything down in the market at once, and once I notice that if I bought bitcoin, I always give at least a week interval before I visit to the exchange again to know if the price decrease further so that I can buy more.

Or if my investment in the previous buy have yield profits, in the form of price increase after my bitcoin purchase, this most times work for me alot most especially when I have a cash availability of up to $5k to put into bitcoin.

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Quote from: Zigabel on August 18, 2024, 08:37:08 AM

Over the years DCA has proven to be one of the most effective way of buying bitcoin in cases where you cannot afford a one time purchase of the asset. Bitcoin is definitely going to be expensive for a one time purchase to some out there who are wiling to get it but don't have the huge capital but have got a stable source of income but will want to add another means to be making money while they continue with their daily means of making money from which they DCA on bitcoin either weekly or monthly.

DCA is a good investment method that can be used for any investor, from newbies to experienced investors. The key to succeed with DCA investment is being disciplined and confident with your method as well as maintain your good income that will be part of your DCA capital.

What basis to do DCA?
It's different among investors and the basis can be daily like Bitcoin Spot ETFs, or longer basis like weekly, monthly, quarterly.

There is a good website for DCA investors.
Dollar Cost Averaging with costavg.com include exchange fee
https://costavg.com/

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Over the years DCA has proven to be one of the most effective way of buying bitcoin in cases where you cannot afford a one time purchase of the asset. Bitcoin is definitely going to be expensive for a one time purchase to some out there who are wiling to get it but don't have the huge capital but have got a stable source of income but will want to add another means to be making money while they continue with their daily means of making money from which they DCA on bitcoin either weekly or monthly.

This does not mean yo cannot buy outright if you have got the money to make the purchase as bitcoin is at its current price. when looking to DCA you put to consideration the fact that you don't have to use a huge amount at once but been consistent with the little amount you are sure you can afford over the period of time you intend doing the DCA helps you a whole lot to get the best off DCA.

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Quote from: ThemePen on August 17, 2024, 08:55:51 AM

Yes this is a good idea. If anyone new to bitcoin or want to grow investment using Dollar Cost Average DCAmethod is good move. It help to buy bitcoin slowly without worrying about its price going up or down. Invest fixed amount regularly which makes it easy and low risk. This method is good for beginners because it help them to build their investment. Other ways of buy bitcoin like waiting for dip or investing much at once may not be good for new investors because they require lot of money and it can be risky too. Another option is Hyper DCA but it is need stead income and long term plan. Most important thing to keep in mind is that holding bitcoin is best way to increase investment and trading can lead us to losses.

Investing in DCA method is not only for new investors, but both new and old investors can start investing in this method. The Dollar Cost Averaging (DCA) method is the most readily available and recommended strategy for investing. Progressive Using this method one can buy bitcoins in small increment size using any fixed amount of money on weekly or monthly basis as per his ability.
One of the reasons investors choose this method of investing is to reduce the average cost of investment. That is, if you do DCA, your average cost of investment will remain the same regardless of when you buy bitcoins.

Surprisingly, the last comment on this topic was on October 10, 2023. After almost 11 months someone bumped the old topic again. Sad

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What is DCA without making money? DCA is just a strategy, but for this strategy to be a successful one you need money, constant inflow of money makes DCA a breeze, if you like buy Bitcoin at a very cheap price, if your income stream is blocked you will have a problem surviving, I know people who bought BTC at 15k and today they almost sold everything because their income stream is blocked, they aren't making any passive or monthly income anymore, now to survive they have to take out from their once secured BTC portfolio.

Don't joke with income stream, they are what makes investment easy, and also your survival as a human.

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Quote from: tvplus006 on August 17, 2024, 09:32:31 AM

Quote from: Sim_card on October 09, 2023, 04:06:42 AM

...There is also what is called hyper DCA, this method is a kind of pattern that one can buy bitcoin anytime and not with a certain amount of money, just like the way MicroStrategy buys his bitcoin. For you to know that he is DCAing is when you add all the bitcoin that he has bought together, and how many years he has used to buy them. This will give you the average price by month or annually...

It is difficult to imitate MicroStrategy, because we have already seen when Bitcoin was trading at $15000, their loss was equal to several billion dollars. And if the market had not started to grow from these values, we could have seen bankruptcy MicroStrategy.

Yes MicroStrategy method is not really easy for an investor to operate unless he has a lot of money but if you have enough money you can keep yourself with any method. Where profit becomes the main concern for an investor short term trading can be tantamount to gambling and risk of losing their capital but I think with Bitcoin your chances of losing will be very low whichever method you follow but long term holding can give high profit which observed at each time.

tvplus006

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Quote from: Sim_card on October 09, 2023, 04:06:42 AM

...There is also what is called hyper DCA, this method is a kind of pattern that one can buy bitcoin anytime and not with a certain amount of money, just like the way MicroStrategy buys his bitcoin. For you to know that he is DCAing is when you add all the bitcoin that he has bought together, and how many years he has used to buy them. This will give you the average price by month or annually...

It is difficult to imitate MicroStrategy, because we have already seen when Bitcoin was trading at $15000, their loss was equal to several billion dollars. And if the market had not started to grow from these values, we could have seen bankruptcy MicroStrategy.

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Yes this is a good idea. If anyone new to bitcoin or want to grow investment using Dollar Cost Average DCAmethod is good move. It help to buy bitcoin slowly without worrying about its price going up or down. Invest fixed amount regularly which makes it easy and low risk. This method is good for beginners because it help them to build their investment. Other ways of buy bitcoin like waiting for dip or investing much at once may not be good for new investors because they require lot of money and it can be risky too. Another option is Hyper DCA but it is need stead income and long term plan. Most important thing to keep in mind is that holding bitcoin is best way to increase investment and trading can lead us to losses.

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Quote from: Dr.Bitcoin_Strange on October 10, 2023, 04:34:58 PM

Yeah, I think that some people have the challenge of properly investing in Bitcoin. There are people who are receiving a salary that is not really a huge amount, and as such, they don't usually make a good budget for investing in Bitcoin, probably because they don't also know more about the DCA strategy. Why I said some people are improperly investing in Bitcoin is because they just take an amount out of their salary and put it into Bitcoin, and later, before that month runs out, they are already in need of some money to aid their needs, and if they can't get any from anywhere, they still sell off their Bitcoin with the hope of buying it back after they receive another salary. There is something about discipline in carrying out investment, and if one invests more than their budget, it will always leave them stranded. So I would add that for someone who is investing in Bitcoin with the DCA or whatever strategy they are using, let them always make an early budget of the money they can save for emergencies and also for their needs, and let them know the actual amount they can allocate to Bitcoin investment that will not affect them.

Exactly, most people don't know how to plan and if one doesn't plan he or she is automatically planning to fail which I didn't I wish anyone to..., And I don't think planning is what they should teach someone in investment because the best plan one can ever have or get is the one that's been taught by oneself. Some people are well paid and instead of them to invest what they can afford to..., They chose to invest hugely hoping to get something big within the shortest time and this is the reason why some people sell in loss because they have invested more than they are suppose to invest and what causes stuff like this is greed.

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Yeah, I think that some people have the challenge of properly investing in Bitcoin. There are people who are receiving a salary that is not really a huge amount, and as such, they don't usually make a good budget for investing in Bitcoin, probably because they don't also know more about the DCA strategy. Why I said some people are improperly investing in Bitcoin is because they just take an amount out of their salary and put it into Bitcoin, and later, before that month runs out, they are already in need of some money to aid their needs, and if they can't get any from anywhere, they still sell off their Bitcoin with the hope of buying it back after they receive another salary. There is something about discipline in carrying out investment, and if one invests more than their budget, it will always leave them stranded. So I would add that for someone who is investing in Bitcoin with the DCA or whatever strategy they are using, let them always make an early budget of the money they can save for emergencies and also for their needs, and let them know the actual amount they can allocate to Bitcoin investment that will not affect them.

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Quote from: Sim_card on October 09, 2023, 04:06:42 AM

...

Note that one can never increase his bitcoin investment portfolio through trading but rather you will decrease or loss your bitcoin through trading, because trading isn't something very easy as people thinks it is.

Trading is not easy, but that doesn't mean it is a very detrimental activity, As long as you have good skills in trading, you can make profits quickly compared to holding.

Quote from: Sim_card on October 09, 2023, 04:06:42 AM

HODLing is the only way out. You need to have a means of income to enable you buy bitcoin, and if your income is very low, try to get a second means of income, if you really believe in bitcoin. No amount is too small to invest with, the earlier the better as time waits for no one.

DCA is a good for those of you who have a long-term bitcoin investment target but not everyone is suitable for implementing it, I still advise everyone to find what they like, whether it is trading or investing using the DCA method.

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Quote from: Z390 on October 10, 2023, 03:07:18 AM

As easy as DCA seems for us on here, not everyone are capable to DCA with convenience, some are trying to hard to get it done, even if it's just a $10 per DCA, situations are never going to be on the same level, it's easier for some and it's harder for some, in my country jobs are not paying enough monthly, to enjoy DCA in Bitcoin you either have other rare skills or you leave the country, there is no way you won't find DCA very difficult if you are living in my country and surviving with monthly salary as a government worker.

To DCA is as hard for some as it is to even make the first investment in bitcoins. Some people who have little bitcoins and have the need to increase what they have by DCA are struggling with meeting up because of how tougher some of their economy has become and is going. DCA is more convenient in a good economy than in a tight one where the amount of money that is being earned by a worker being not enough to solve the increasing expenses. To DCA in bad economic conditions will require a lot of discipline and comitment.

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Quote from: Antotena on October 10, 2023, 12:51:37 PM

DCA is good way of buying bitcoin notwithstanding whether you are new or old, whether you have money in large amount or I'm low amount. The advantage of it is that, it will reduce losses that may arise when the market fall when you have bought your bitcoin, it saves you from buying bitcoin all and then later observe that the market hs gone down below where you bought when you can actually buy more cheaper at lower price.

Right. DCA's benefit is just too good, especially in investing volatile assets like bitcoin and altcoins. Despite this, it took me years before I finally did the DCA which started late last year. I am a regular gambler so maybe that kind of attitude made me think of just risking trying to catch the dip in the past. So I am glad to finally make a DCA and will continue doing it maybe until early next year.

For the newbies who are still trying to get a clue on how the market works, DCA is the best strategy. The same to people who are busy and those who do not like to spend a lot of time analyzing the market with its short-term effects.

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DCA is good way of buying bitcoin notwithstanding whether you are new or old, whether you have money in large amount or I'm low amount. The advantage of it is that, it will reduce losses that may arise when the market fall when you have bought your bitcoin, it saves you from buying bitcoin all and then later observe that the market hs gone down below where you bought when you can actually buy more cheaper at lower price.

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Quote from: Sim_card on October 09, 2023, 04:06:42 AM

Newbies who have not yet invested in bitcoin or have bought their first bitcoin, or people that want to continue with the increase in their bitcoin portfolio should put in consideration of using Dollar-Cost-Average(DCA) to increase their bitcoin portfolio, as this is the most convenient way to accumulate bitcoin gradually without worries of the price movement of bitcoin. DCA is means that you are to maybe 10% of your income to buy bitcoin either weekly or monthly, it is just like you save some part of your income regularly in order for you to use in to achieve a goal in the nearest future.
.

I have read good notes about investing in bitcoin through DCA strategy and all the threads usually coin their thoughts about DCA in a manner that makes it sound like the strategy is mainly just for the benefits of low income earners. And I want to deviate from that narrative that the use of DCA to accumulate bitcoin is of more advantage to investors with big amount of money than low income earners as we might think. that instead of buying at once because you have the money in big amount you can portion the amount and buy at intervals price level. Let's say an investor has $9,000 he's ready to afford in buying bitcoin he can split it in three places $3k each and DCA at different price levels, for anyone that has the money that much it's more profitable doing it that way rather than buying all $9k at once. The profit will be higher compared to when you buy all at once with $9k when bitcoin bull run takes in shape.

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Quote from: Sim_card on October 10, 2023, 01:44:21 AM

Quote from: serjent05 on October 09, 2023, 02:07:02 PM

Quote from: Sim_card on October 09, 2023, 04:06:42 AM

Note that one can never increase his bitcoin investment portfolio through trading but rather you will decrease or loss your bitcoin through trading, because trading isn't something very easy as people thinks it is.

I believe this is an exaggeration. There are people who increase their Bitcoin portfolio in trading, Not because someone is not able to do a successful trade, everyone is a failure. That is a wrong assumption, IMO.

I am not saying that it is impossible for one to increase his bitcoin through trading, It wouldn't be up to 20% of traders that can increase their bitcoin through trading. Majority like 80% of investors can increase their bitcoin portfolio through hodli and regular DCA. Hodli needs only patience with your investment and it gives higher possibility of making profit compare to trading.

Quote from: serjent05 on October 09, 2023, 02:07:02 PM

Quote from: Sim_card on October 09, 2023, 04:06:42 AM

HODLing is the only way out. You need to have a means of income to enable you buy bitcoin, and if your income is very low, try to get a second means of income, if you really believe in bitcoin. No amount is too small to invest with, the earlier the better as time waits for no one.

If you are talking about the increase in Bitcoin portfolio, hodling alone cannot increase your portfolio, you need to continuously buy Bitcoin and hodl to increase your portfolio.

If you are talking about realizing profit, hodling is not the answer but selling at a higher price. Since to realize our gain, we need to stop hodling and sell our stash at a higher price.

You are right but the fact remains that if Mr A and Mr B buys bitcoin with the same amount and at the same time, if Mr A sells his bitcoin at the end of the first circle and Mr B sells his after two circles. Mr B will make more profit compare to A. This is because the price of bitcoin increase over time with the number of bitcoin circles. Take for instance those investors that bought early when bitcoin price was $100 and if they have not sold till date, they will have made huge profit compare to the person that bought at $100 and sold it during the bull run of when he bought. This is what I mean and with DCA, hodling becomes a better way to safeguard your future.

You are right about Mr A and Mr B, but everyone have different reasons why they decide to sell, you don't know what costs MrA to DCA that far and on getting to a point where he has to pull out his profit he just have to do it, for reasons we all can't know or understand, the best part is they both make profits and that's what we want isn't it?

As easy as DCA seems for us on here, not everyone are capable to DCA with convenience, some are trying to hard to get it done, even if it's just a $10 per DCA, situations are never going to be on the same level, it's easier for some and it's harder for some, in my country jobs are not paying enough monthly, to enjoy DCA in Bitcoin you either have other rare skills or you leave the country, there is no way you won't find DCA very difficult if you are living in my country and surviving with monthly salary as a government worker.

Big income is very helpful, and Investment will be easier.

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Quote from: serjent05 on October 09, 2023, 02:07:02 PM

Quote from: Sim_card on October 09, 2023, 04:06:42 AM

Note that one can never increase his bitcoin investment portfolio through trading but rather you will decrease or loss your bitcoin through trading, because trading isn't something very easy as people thinks it is.

I believe this is an exaggeration. There are people who increase their Bitcoin portfolio in trading, Not because someone is not able to do a successful trade, everyone is a failure. That is a wrong assumption, IMO.

I am not saying that it is impossible for one to increase his bitcoin through trading, It wouldn't be up to 20% of traders that can increase their bitcoin through trading. Majority like 80% of investors can increase their bitcoin portfolio through hodli and regular DCA. Hodli needs only patience with your investment and it gives higher possibility of making profit compare to trading.

Quote from: serjent05 on October 09, 2023, 02:07:02 PM

Quote from: Sim_card on October 09, 2023, 04:06:42 AM

HODLing is the only way out. You need to have a means of income to enable you buy bitcoin, and if your income is very low, try to get a second means of income, if you really believe in bitcoin. No amount is too small to invest with, the earlier the better as time waits for no one.

If you are talking about the increase in Bitcoin portfolio, hodling alone cannot increase your portfolio, you need to continuously buy Bitcoin and hodl to increase your portfolio.

If you are talking about realizing profit, hodling is not the answer but selling at a higher price. Since to realize our gain, we need to stop hodling and sell our stash at a higher price.

You are right but the fact remains that if Mr A and Mr B buys bitcoin with the same amount and at the same time, if Mr A sells his bitcoin at the end of the first circle and Mr B sells his after two circles. Mr B will make more profit compare to A. This is because the price of bitcoin increase over time with the number of bitcoin circles. Take for instance those investors that bought early when bitcoin price was $100 and if they have not sold till date, they will have made huge profit compare to the person that bought at $100 and sold it during the bull run of when he bought. This is what I mean and with DCA, hodling becomes a better way to safeguard your future.

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Quote from: Poker Player on October 09, 2023, 04:14:02 AM

Overall you give good advice, the only thing I would add is that DCA is also good for people who don't have a big income and therefore can only invest what they save from their paycheck. For most salaried people. I am not a newbie and I do it.

Quote from: Sim_card on October 09, 2023, 04:06:42 AM

Note that one can never increase his bitcoin investment portfolio through trading but rather you will decrease or loss your bitcoin through trading, because trading isn't something very easy as people thinks it is. HODLing is the only way out.

Well, it's not exactly like that. Yes, there is a small percentage of people who make money from trading, but it requires a lot of dedication, study and effort. It is much easier and safer to buy and hold Bitcoin in the long run.

Quote from: Sim_card on October 09, 2023, 04:06:42 AM

You need to have a means of income to enable you buy bitcoin, and if your income is very low, try to get a second means of income, if you really believe in bitcoin. No amount is too small to invest with, the earlier the better as time waits for no one.

Good advice.

Haha. Yes! That was good advice. Remembered reading a post on Twitter saying if anyone has below 10k USD should forget about buying BTC. Well, been using Dual Investment to get it right because I promised myself not to let anyone make me miss this

Topic: DCA, the most convenient way to increase your bitcoin as an investor. - page 8. (Read 1953 times)