What I know is that DCA is just DCA, and in terms of smart DCA or whatever, I think it's just part of the strategy, including increasing purchases when the market is down and also having good analytical skills.
Because I think many people do DCA but have a good strategy when the market is declining and I think that is a normal thing.
However, what is certain is that DCA is a good strategy and is suitable for investors who do not have the ability to buy in large quantities or the ability to carry out analysis. However, they can do so according to their ability to buy Bitcoin regularly every month, week, or several weeks on a regular basis and aim for the long term.
Topic: DCA vs Smart DCA, what do you choose? - page 2. (Read 579 times)
I also think that the traditional DCA is better. Buying during price drops may be good but what if one long green candle is followed by another long green candle, and another one, and then another one again? You've already missed a lot.
If buying during corrections is really attractive for you but you don't really want to time and analyze the market all the time, then you can integrate it with your existing DCA strategy. It doesn't have to disrupt your DCA schedule. You can have the traditional DCA, but you will also set aside amounts in case there is a correction that's deep enough for you to make the most of.
If buying during corrections is really attractive for you but you don't really want to time and analyze the market all the time, then you can integrate it with your existing DCA strategy. It doesn't have to disrupt your DCA schedule. You can have the traditional DCA, but you will also set aside amounts in case there is a correction that's deep enough for you to make the most of.
Overall, it's still Dollar Cost Averaging (DCA) 
The most important here is we must have the confidence to buy Bitcoins without any regrets because that's how the Dollar Cost Averaging (DCA) works.
And that's also common problem of people who wants to buy Bitcoin, they just keep telling to buy but they can't do it.
The most important here is we must have the confidence to buy Bitcoins without any regrets because that's how the Dollar Cost Averaging (DCA) works.
And that's also common problem of people who wants to buy Bitcoin, they just keep telling to buy but they can't do it.
In other words, buy the dip.
It's not only work during bull season, but during bear season too because you will able to accumulate more coins. The problem of using this strategy is you need to check the price everyday to get updated and you need to set a budget how much you will buy for the dip, the dip could happen continuously in one month and it could be not happen in one month because the market is bullish.
It's not only work during bull season, but during bear season too because you will able to accumulate more coins. The problem of using this strategy is you need to check the price everyday to get updated and you need to set a budget how much you will buy for the dip, the dip could happen continuously in one month and it could be not happen in one month because the market is bullish.
I would go with traditional DCA method for accumulating Bitcoin since it's tried and tested. There is no ambiguity in DCA if you follow that strategy for longer period of time. I am not much familiar with smart DCA, in fact this is for the very first time I am reading about smart DCA. The issue with Bitcoin is that it's difficult to detect when it's the start of the dip and when it's bottom. Anyone who going with buy on dip will struggle to find the dip and bottom.
But you know what's even better than this so-called "smart DCA"? A lump sum investment ideally in the bear market, but early in the bull run works too. DCA should only be the tool for those who have no savings and want to save a little bit of money from their montly paycheck. But they shouldn't hope to make big returns, because you need money to make money. Even if you DCA $100 every month and they got up 10 times, it still won't change your life.
Lump sump strategy pretty much like go big or go home i.e. high risk,high reward.Smart DCA is moderate risk, moderate reward.
While DCA is low risk, low reward.
Correct, investment into stable asset won't change your life if you don't have high income sources and willing to hold for many years. This is the reason why some people choose to gamble on shitcoins.
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I wanted to remind you about the concept of Smart DCA, purchasing BTC during corrections, when the price drops below the 1W-1M Realized Price.
This strategy works well during a bull rally and is much more effective than classic DCA.
This strategy works well during a bull rally and is much more effective than classic DCA.
But you know what's even better than this so-called "smart DCA"? A lump sum investment ideally in the bear market, but early in the bull run works too. DCA should only be the tool for those who have no savings and want to save a little bit of money from their montly paycheck. But they shouldn't hope to make big returns, because you need money to make money. Even if you DCA $100 every month and they got up 10 times, it still won't change your life.
I thought that DCA is just DCA, no matter what time of the market you do it, it's just that? Quite surprised to see that this isn't the case but I guess, I know now. What's exactly the difference of normal DCA to a smart DCA though besides the Smart DCA having to do with the price correction? Wouldn't it be an obvious thing to do to adjust your DCA when the price starts to go down or up in prices? I think that we're just messing with a lot of people now with this thing that there's an addition of another kind of DCA, just call it DCA if you ask me, it's not like there's a difference, at the least DCA as we know it is flexible enough unlike with this new one, that seems to rely on predicting the price of bitcoin just to make sure that it works well, it could in theory work well but I don't think that every person has the foresight required to do it really well.
That's a good point and kind of shows another flaw in the Smart DCA strategy. In the classic DCA, you can easily allocate a budget that you're comfortable with and make regular purchases, whereas in the Smart DCA, you don't have a clue how often will the dips occur. I guess you could still put the same amount aside (e.g. each week or month) and spend it all when the dip finally happens, but, to me, that sounds awfully risky as you could end up sitting out through cheap price periods.
From all the comments in this thread it seems fairly clear that, for most people, the classic DCA is a better choice.
The classic DCA is a fool-proof, newbie-friendly method for the majority of users. The smart DCA has major flaws that can ultimately prevent you from actually performing DCA by constantly postponing your purchase. That doesn't mean that the traditional DCA doesn't have any disadvantages, the most important of which is purchasing at peak prices. Perhaps a combination of both is ideal, but it is certainly not a newbie-friendly option. Your best bet is to take advantage of dips and invest higher amounts during major price dumps. From all the comments in this thread it seems fairly clear that, for most people, the classic DCA is a better choice.
I hadn't heard of the term smart DCA before; it's a little more complicated than traditional DCA, and I'm not overly confident in how consistent you can be. Buying the dip isn't something that you can do on a weekly or monthly basis. (...)
That's a good point and kind of shows another flaw in the Smart DCA strategy. In the classic DCA, you can easily allocate a budget that you're comfortable with and make regular purchases, whereas in the Smart DCA, you don't have a clue how often will the dips occur. I guess you could still put the same amount aside (e.g. each week or month) and spend it all when the dip finally happens, but, to me, that sounds awfully risky as you could end up sitting out through cheap price periods.
From all the comments in this thread it seems fairly clear that, for most people, the classic DCA is a better choice.
I hadn't heard of the term smart DCA before; it's a little more complicated than traditional DCA, and I'm not overly confident in how consistent you can be. Buying the dip isn't something that you can do on a weekly or monthly basis. Traditional DCA works just fine when there's consistency. However, it has faults when you're sticking to a plan, such as buying at excessively high prices. I'm more keen on taking advantage of the dips and buying higher amounts of Bitcoin, such as purchasing $200 worth of Bitcoin instead of $50, which is your original plan.
Just another name for trying to time the market which has proved not effective, I guess smart DCA would only work for those that have enough time to stare at the charts all day long waiting for the opportunity to buy to come which would be draining on energy and also has a lot of down sides, the normal DCA is far better cause it doesn't involve any timing the market and you can set your dca plan in a way that anytime they is a dip you increase your allocations or lump sum at such intervals so yeah DCA is a far better strategy.
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To start with, it's not even everyone that knows about the normal DCA, so there are many newbies that doesn't know about smart DCA. I got to learn about DCA after I joined the forum, although even before then, I could only buy Bitcoin when I had the money that I was convinced I would not use for some time. But the DCA strategy opened me to a lot of ideas about Bitcoin investment, and that's why I believe that some people are just cool with DCA, and for some reasons, like being emotional because of price drops and increases dynamically, some will just want to invest weekly or monthly in a proportional manner as regards their income flow. When one cannot be patient enough to do smart DCA, it is better to just buy whenever you have the money, and based on the time interval, the person has already agreed to invest.
The DCA strategy is already a smart accumulation strategy. So I don't see any other abbreviations for Smart DCA. It's pretty simple: buy each dip you find and hold it. So when it pumps, you will have good profits considering your average purchase price. For new investors, the DCA strategy is already a smart strategy. But for panic traders or holders, DCA won't be smart. They might become panicked and sell off their holdings. The smart holder strategy is called the DCA strategy, by the way.
Well a lot, if not all, of people do this already. It’s quite the simple concept of
“buy low, sell high” that was typical used in stocks back then but is still very much
relevant until now.
The problem with this is that those people that aren’t that rich might not
have enough funds to buy bitcoin when it suddenly corrects itself.
This is why sometimes putting in small
amounts of money regularly is much better than buying a huge amount of
bitcoin all at once during a dip
“buy low, sell high” that was typical used in stocks back then but is still very much
relevant until now.
The problem with this is that those people that aren’t that rich might not
have enough funds to buy bitcoin when it suddenly corrects itself.
This is why sometimes putting in small
amounts of money regularly is much better than buying a huge amount of
bitcoin all at once during a dip
Smart of what ever you perceived it to be, what I know is that, when it comes to Bitcoin investment it good to have an entry price that is low and also to sell at high price, so DCA have to do with luck and chance's and it not far from what you have said as at the interest that comes with taking advantage of the vitality of Bitcoin and what the chances there presents.
Although this present it own risks, but with all you will still be at advantage holding more Bitcoin and what comes along the line while the price keep recovering from price corrections.
Although this present it own risks, but with all you will still be at advantage holding more Bitcoin and what comes along the line while the price keep recovering from price corrections.
Personally I see a traditional DCA strategy is better.
Traditional DCA does not require any serious knowledge, just requires some level of commitment to achieve success. It will be easier for a new investor to easily adopt the traditional DCA because it requires simple knowledge. Traditional DCA is okay for me, and will also be my recommendation to a new investor.
It doesn't matter what kind of DCA is better for us to use. As long as we've got the money ready to get into the market for buying the dip or anytime that we wish to do, that's the best strategy for us. And no matter what kind of classification it has got for DCAing, the best thing to do in the market is to buy the dip whenever there's an entry point that we should buy it. Anyway, how about anyone who uses either of the two is actually a wise and smart investor?
You are basically saying that smart DCA is a strategy used when one intends to DCA but instead of doing the DCA journey randomly or on specific days, we use the smart DCA indicator to know the exact day to buy before the price gets higher.
Am sure it is just the fact that one has to firstly consult an indicator of sort before making further DCA commitment so as to buy purposefully at the cheapest price and inturn have more value in return that makes this a smart DCA, else, it's just a DCA strategy with indicator tools.
Am sure it is just the fact that one has to firstly consult an indicator of sort before making further DCA commitment so as to buy purposefully at the cheapest price and inturn have more value in return that makes this a smart DCA, else, it's just a DCA strategy with indicator tools.
But I believe you will more average lower price if you use the Smart DCA method because you can guarantee that you purchased on correction price. The traditional DCA can give you much higher average price especially if you keep buying already near the peak of every trend reversal.
In theory - yes, but there are few factors that could backfire with Smart DCA strategy, i.e. there's no guarantee there will always be a correction or correction could come late, after the price skyrocketed, and you'd be buying at the higher price than those doing classic DCA. Also, unless you managed to automate your purchase (which I don't think is possible on any platform without having a trading bot), there's a risk you could simply miss the correction and not buy in the right time, i.e. due to holidays, other commitments etc.
But yeah, both strategies have their own risks and only the time will tell which one is more effective.
Isn't the reason why people choose DCA sonthey don't have to follow the market on the regular basis, obsess over the price while trying to time the market? So I don't see why someone who goes for that option would switch to "smart DCA" as it goes against the most important reasons why they are investing that way in he first place.
I will look a little bit more into it, but I don't think that is worth the hassle. At least not for those like me who don't want to having to check what's going on the market.
I will look a little bit more into it, but I don't think that is worth the hassle. At least not for those like me who don't want to having to check what's going on the market.
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