Topic: DCA: the power of little beginning (Read 1140 times)

Exactly, little drops of water make a mighty ocean,this statement reflects in the crypto space.Many investors have failed to accumulate bitcoin using the DCA strategy.The DCA strategy has proven historically as one of the best investment strategy to accumulate bitcoin.DCA strategy helps investors to accumulate bitcoin with a fixed amount periodically (Daily, weekly, monthly) regardless the price.The DCA strategy is not only used by investors in the crypto space but it's also used by investors outside the crypto market for investors to purchase/accumulate stocks, asset etc.Since investment refers to long term it's best investors/bitcoiners adopt the DCAing strategy, instead of investing huge amount of money then at the end of the day your expectations wasn't accomplished it's best we adopt the DCAing strategy into the crypto space to reduce losses due to price volatility.As an investor it's best you invest on what you can afford to loss.

You are right in saying that, if you can buy at a cheap price in that month, you will certainly be able to get more bitcoins. but again this DCA is reserved for those who no longer think about market movements. from a psychological point of view, you also don't want to feel greedy by continuing to have less when buying bitcoins. if you want to buy, just buy at that price, the problem of profit is what the latter says is important that the accumulation target is achieved.

Investing in Bitcoin with the DCA method is good for everyone. But not only for those who have very little money, but also for those who have a lot of money to invest in Bitcoin, investing in DCA method is better. But those who have less capacity, if they can continue to invest in DCA method for long term then their investment amount will be much bigger at some point. So even if you have very little means you invest in DCA method, at some point you will feel like you are an investor too.

There are no restrictions on Bitcoin investment can be done by anyone personally anyways. DCA approach to investing seems very convenient to me. Apart from those who have a lot of money, I have seen most of the people in the world hold back on investing because they cannot accumulate a good amount to invest. In that case I find this DCA method quite useful. Almost universally the DCA method will work for everyone.  Anyone who wants to succeed in Bitcoin investing. So in long-term investing anyone can invest any amount in a week or month according to their ability to get success from their investment in the future.

DCA method is the best way to invest. If a person cannot afford to invest at once then he can increase his investment by investing in DCA method. There are many users here who don't have money to invest at once, they can invest because they don't have enough money. If all these people invest monthly or weekly using DCA method, they can all invest and get success. No matter what you want in life if you know about bitcoin I would say invest in bitcoin if you can't afford it use the method if necessary and continue your investment until you get the maximum success hope everyone gets a lot of success.

Basically, the Dollar Cost Averaging is a way for one to practically purchase an asset that seems too big if we want to buy in a whole, it's almost the same thing as paying installmental. DCA method was coined here to fix the gap of people who practically can not afford bitcoin in a whole, or those who see it as too expensive to buy hence they buy gradually with a long term investment target in mind and at the end they finally met up with the said target of owning an asset. So you're a bit far from the truth.


But it's obvious that we are discussing bitcoin here, and hence the DCA method is most applicable in buying bitcoin. For other assets (altcoins) it's really not necessarily to dca into them except for a coin that has become way too expensive and non of the altcoins are too expensive, only Ethereum has a little price that seems expensive but not really. So the discussion is hanged aroun bitcoin only.

In my opinion investing in Bitcoin for long term DCA method will work for the beginner level to the professional. And if the trader knows the effectivity of DCA investment then I think all of them will also start there DCA investment besides there other trading. And yes of course for the beginner who have little knowledge about investment and also newbie in cryptocurrency what them dca method is the best way to invest. Most of the case it always gives the profit rather than faceing losses.

I can actually relate to this though, having such mindset that trading would make rich quick but instead it turnup to be that opposite due to various losses encountered during my days of trading , ( though alot have made it through trading), I guessed may be was because of the half-size knowledge I had back then , but got to a point I discovered that I was not even progressing in it at all, then I came across a thread here on this forum head about some users talking about DCAing how they normally by bitcoin at different price interval consistently either monthly or weekly, then I decided to go give it a try , as time goes found out that my pregress was really showing that time around , due to the recent surge in price bitcoin as undego this past months.

exactly , they where actually a big help to me too, guiding me and given me more courage to embark on long-term holding of bitcoin, back then my confidence in investing was pretty low due to various losses from various shitcoins. But now those confidence has been recovered back

That could work assuming that from the moment you decide to buy there's exactly equal chance of bitcoin going down as of it going up, but this is not the case.
Bitcoin is a growing asset that follows the adoption curve and as long as it exists and meets the demands, it will continue to go up.
Let's not forget that bitcoin tends to follow cycles, so it's not that hard to buy bitcoin in a relative low (50% from the ATH). If you did this easy and simple thing over the years, you'd always display better results than most traders, including the ones who DCA.

Don't believe me, check how many 50% corrections there were since 2013 and do the math for any given period comparing DCA method with a 50% lump sum buy with the same capital.
You'll see that the simplest method produced far better results every time.



That's not the best idea if you ask me. Let's take this year. If we followed your advice we'd be buying until the new ATH, so we'd be buying 66k -73k and now during the correction we'd be holding that at a loss, right? Now let's say it doesn't go to a real ATH and just crashes 50%, you're going to be stuck with the coins you bought using DCA since February and trying to get funds to buy more, since now it's the dip, a moment you actually should be buying, but your money is stuck in $70k bitcoin.


Why not simply buy it during a correction and hold. Does it really matter that it wasn't the exact bottom? Last bear market I was heavily buying everything between 25k and 19k on the way down, as it was a good price to pay. It went lower and I did not buy because I was out of money at that point, but I still think I did better than people who caught that bottom using DCA, but were spending $100 a week instead of going all at $20k.  

Are you really "wrong" when you don't buy at the exact bottom? Who cares? When you DCA you also don't buy the bottom, you just make it look like you do, because buying the bottom with 1% of your capital doesn't really cut it when 99% of it does not buy the bottom. It's like running from the cops in your car 10 times and 9 out of 10 they catch you and put you in jail, but one time you run away and you feel good about it and brag to people that there was one time you managed to outsmart them

DCA is absolute when it comes to strategies to deploy during making Bitcoin investment, their is aswell many good features associated with it, which you clearly listed some. DCA doesn't look if a person is financially capable or not, even those who have enough to lump aswell void the idea and decides to DCA. Most people decides to DCA because it is very difficult to assume the highest DIP to lump sum, so in the process of Dcaing, an investor can easily buy from so many DIPS which will help in balancing their portfolio. DCA takes a lot of time and years other than lump sum, which means buying more DIP as per every cycle to be witnessed, which means at some point we may get enough profits while DCAING than applying any other strategies.

Honestly,the DCA strategy seems to be a good investment choice for anyone that wants to accumulate wealth.There's no doubt that DCA can help one to study the accumulation of bitcoin.DCA is a long term investment plan,although,all investing involves risk, but given the crypto market’s potential for extreme volatility, you should only invest money you can afford to lose.

This attempt aims to reduce the impact of market volatility on the overall investment and allows you, as an investor to accumulate your position over time.
Many people had this particular challenge in Course of investing,meanwhile some failed and fell along the line.The most important feature is for DCA is that it faces the volatile cryptocurrency markets,and it minimizes the risks of an unfavorable investment outcomes precisely.

As far as I'm concerned overall the DCA method is a much safer investment strategy as it helps compensate for large market declines and works well for investors with any level of experience. This strategy is generally best for individuals who want to hold cryptocurrency assets for an extended period of time. The main advantage of DCA is that it removes emotion from investing.

There is no doubt things like these can bring huge impact on anyone and surely small investors can also gain huge profit, but we need consistency and patience as well for these all strategies which are covering good things for the small investors in this community.
After long stressful life I am also going to jump into this way and surely going to post my all experience in this journey because this is the best way for the peoples like me those were looking for the change and having nothing to do things for themselves.

DCA covers all aspects of an investment worries of not being able to buy big at once because thats the mentality for some person that actually rush into getting an investment in Bitcoin. But DCA is always there for low income investor that don't have the power of buying like a whale, the concept is that you start up small but can later end up being a whale.

Definitely bro I dearly agree with you that DCA (Dollar Cost Averaging) is a "Trusted" and "Tested" strategy. You mentioned two words that are very good and perfect. The words are small, but the meaning is big. "Tested" and Trusted. DCA strategy is one of the greatest strategies for newbies and experienced players. Which prevents you from taking the biggest risk, i.e., volitility. Under the same strategy, you can save your assets from losing more by reducing volatility. 
 
Similarly through DCA we can steady the accumulation of Bitcoin. DCA is the only strategy that provides you with an excellent investment pattern in both the bull market and bear market with minimal risk and less volatility. The best feature of DCA that every person wants is to get the opportunity to invest in Bitcoin, that is, if you did not invest in Bitcion at one point in the dip, then DCA gives you the opportunity to invest.

I think you're missing the point of DCA.

DCA recognizes that we can't know what the price will be at any given time. If you lump sum buy on any given day, you don't know if the price will be higher or lower in a week. So maybe buy today and miss out on a better price a week later. With DCA you don't have to worry about trying to guess the best time to buy.

And with Bitcoin, since we have something that basically supercharges Bitcoin investing - the 4 year market cycle - by telling us what periods of every four years we should be buying, we can then use that to our advantage and greatly increase the returns of DCA. So we can DCA only during the lower part of each 4 year cycle, like buying starting once Bitcoin has crashed a lot, and then continuing to buy until it goes above the old ATH, and then wait for the next crash, saving money in the meantime to be able to DCA with extra funds on the next bear market. And with DCA, instead of guessing when to buy during a bear market , and many people would likely lump sum well before the bottom, or assume a lower price is going to come which never does and then they have to lump sum well after the bottom, DCA allows buying consistently all through the bottom.

DCA removes the risk of being wrong about when to lump sum buy, and of course it also means people don't have to save up a bunch of money first before buying. Lump sum buying is ONLY better if you happen to have a bunch of money at an ideal time (bear market) and you guess well enough where the bottom is to get near it.

Getting lucky is not an investment strategy. DCA is the superior investment strategy that decreases risk, can be used strategically with Bitcoin to increase profits over a generic DCA, and is more likely to beat out lump sum buying for many people because of that less risk and timing the market with luck (guessing) not being an important part of DCA.

People who have a much better financial structure even use the DCA strategy to buy bitcoin and this aims to enable them to enter the market regularly according to the time they determine. Investors have their own styles and methods when they want to buy bitcoin, but if you look at it, most people on this forum specifically apply the DCA strategy. The issue of volatility and negative news is something that often occurs in the Bitcoin journey and investors probably already understand it very well.

In fact, using the DCA pattern we can create a steady accumulation even though negative news continues to appear and when bitcoin is hit at a much higher price then we can use other methods to buy bitcoin in much larger amounts. For example, using reserve funds that we deliberately save for certain needs and that can be used to buy bitcoin in those conditions.

Just so you know, DCA is actually inferior to lump sum buying because you're minimizing the potential loss (temporary) at the cost of potential profit. If you DCA over the course of a month, buying 4 times instead of once on the first of each month, if the price goes up within that month you will not only make less money in fiat terms, but also end up owning less bitcoin because it will become more expensive.

DCA is only for people who can't afford lump sum buying, it's not a method of maximizing your gains, or the amount of bitcoin you can hold. It's good for a bear market, but not so much when the market is stable or goes up.

I feel this topic is targeted to me. I have heard of Bitcoin ever since 2014, but perceptions surrounding the innovation of Bitcoin made it so skeptical to ponder on. A friend who introduced it to me insisted I deposit $100 before I be part of the great deal. I couldn't afford it. I was so naive didn't blame myself for my clumsiness towards it. Not untill early this year 2024 I came across this forum, despite I was deprived from comments I learnt of DCA, made little research which later killed the boy in me for the man to be born. I summoned some courage, I got some quantity of Bitcoin I could, one which I can afford to lose. Bump I watch my money grow, at subsequent times, I purchased much coins. My 10 year long awaited dreams came to pass in this forum.

I'd love to post screenshots of my purchases this year to solidify my proof, but I find it very difficult to do. Hoping to master the forum fully in subsequent times.
 

Yes, that's interesting and I do not know anyone who participated in the DCA method in an investment that still regrets it if done correctly. Only that the person may not earn huge money as though he invested once in an asset that appreciated significantly immediately, just as it would avoid huge losses if happened in the opposite. This approach is practical and I love the FOMO remark you added, surely, this will remove the FOMO from the minds of investors and make such investors act rightly after carefully thinking the investment through. This is patience and once there is nothing like FOMO, the stress of divesting so fast in case of depression or FUD would be greatly reduced or eliminated.

And really, in this kind of approach, everybody wins, but we should still neglect the fact that everybody can win if everybody DCA very well. There are right times to DCA even if we can do it in both the bullish and bearish markets, it is best we start at a reasonable price. If the asset is too expensive, we should avoid it no matter what we think of DCA. Many people were misled to continue investing when Bitcoin was over $65,000 in the last bull run, not even the DCA approach can save a person in this kind of situation. Let's use it right!