Topic: DCA vs Zone Specific Strategies While Accumulation of Bitcoins - page 3. (Read 576 times)
OP, you have done well to bring up this information here and it will really help newbies and those who haven't bought bitcoin yet. I will prefer the regular DCA method because this is the best way one can keep on accumulating more bitcoin, in order to increase his bitcoin portfolio gradually. DCA doesn't bother about the price of bitcoin at that moment either it is pumping or dumping because it is a continuous process and you are investing for a long period of time, maybe 8-10 years. Buying at the dip is also good but the disadvantage is that one have to wait till the price dips and at that time you might have spent the funds that you budgeted down for buying at the dip, which will lead to regrets at the end of the day. What matters is for you to have a proper plan of amount that you will assign for regular DCA based on your income. DCA approach is the best strategy for beginners, but if you have accumulated up to your target amount of bitcoin, then you can consider buying at the dip as a good strategy. Patience is the key to long term investment and DCA helps you accumulate with ease.
To accumulate Bitcoin better, you must have good finance and good personal financial management for yourself, your family and your investment. Your investment should come to like your last priority because you and your family must survive, live well first.
If you have good job(s), good income, you can have more source of capital for investment after using part of your income for necessary expense and surely have money for emergency.
After you have fund, best strategy is Dollar Cost Averaging (DCA) with which you will make accumulation without emotion and you will be less affected by psychology cycle of market.
If you have good job(s), good income, you can have more source of capital for investment after using part of your income for necessary expense and surely have money for emergency.
After you have fund, best strategy is Dollar Cost Averaging (DCA) with which you will make accumulation without emotion and you will be less affected by psychology cycle of market.
Background
Hi fellows, As we all know there are different zones in the Bitcoin market cycle, and those who fill their bags for a single cycle or take an interest in multi-cycle accumulation considering Bitcoin's future potential, just need to be aware of the market zones and effective acclamation strategies as here in this post I'm trying to express what I've learned in a couple of months about the Bitcoin's market cycle and by expressing my thoughts I would like to seek guidance from seniors that what they think about am I on right track or not.
Edit:Changed the Subject to testing the desired feedback scenarios, As I was expecting a discussion on the different strategies not praising the DCA.
Introduction to Bitcoin Cycle Zones
Taking market zone to be covered in the same post, I do acknowledge maximum of the fellows already know but for those newbies like me, it will be easy to understand. The Bitcoin market cycle is based on 4 significant zones, Accumulation, Distribution, Markup (Bull Run), and Markdown (Bear Market). Considering important factors, I will try to be more significant in strategies rather than putting redundant information.
Accumulation Zone & Strategies to Follow
First of all, starting from the accumulation zone, in this market zone, whales and investors accumulate Bitcoins taking the realized undervalued market price, In simple accumulation zone is the most suited zone to invest in Bitcoin where the market price of Bitcoin goes lower than the realized bitcoin price.
For the rest, I think the topic is getting lengthened..
In this particular zone, a few more prominent Strategies can be taken for effective Bitcoin accumulation.
Strict DCA: DCA is the most recognized accumulation strategy used by the Bit-coiners to fill up their bags, many different types of DCA exist but here in the accumulation zone investors should prefer the Strict DCA on a particular time span and specific amount on each interval. Smart people consciously use this zone to boost their returns with good decisions but a few newbies and other investors try to wait for the Bottom, which can lead to FOMO later on, by adopting DCA in this zone a much more effective investment can be made as no one can speculation bottom accurately.
Use Limit Buying Orders: You can use the limit order, prepare a long-term buying analysis, and place equal buying orders on the different market support levels, this will greatly help in the volatility, in the accumulation zone compared to the other zones volatility remains constant (Consolidating market), still in case it will help you in decent buying prices.
Try to Avoid FOMO: In the accumulation zone on the initial stage and ending stage of the zone most people fall into the FOMO, better to control their emotions, be conscious while making any decision as it will directly affect your accumulation process, take a close look on the market sentiments and plan accordingly your next buying range & capital of that range to be invested.
Prepare the Emergency Funds:
I was not aware of it firstly while exploring the forum, in the Buy&Hold with a discussion between seniors and JJG, still need to be more familiar with this strategy but what I've learned is this amount should be in the stable currency from which medium you can utilize it in any sort of unexpected market momentum. I'd like to ask here what seniors think about this.
Distribution Zone & Strategies to Follow
The distribution zone in the Bitcoin's market cycle is the profit booking zone for the short-term investors who accumulated Bitcoins earlier in the Bear market & accumulation zone. Here the accumulation does matter for those who are expecting their entry in the market for 2 or 3 cycles or even more. Even in the distribution zone, these Bit coiners accumulate Bitcoins but at a lower rate. Most people don't prefer accumulation here but still, those who are dedicated to Bitcoin or any other narrative (to avoid inflation, Saving mode, etc) do accumulate Bitcoins.
Hybrid DCA: DCA can be an all-rounder for you if you are making entries for a longer period regardless of the market cycle, in the distribution zone you can accumulate by just making a few changes in the DCA, considering market sentiments and changing your interval accordingly the same thing can be done with the capital amount to be invested in the particular entry.
Use Bots: You can use the Bots with a tight range with your buying orders, It's quite similar to the limit orders but here while the market stays consistent and shows lower volatility Bots can really help in effective average buying.
Be Patient and Depends on TA: In the distribution zone, all you need is patience, while taking regular entries control your emotions of greed and fear, do not fall into any traps, and take entries strictly to the Technical analysis to ensure efficient buying prices. Consider most of your entries in the correction times.
Markup & Markdown Zone & Strategies to Follow
In the markup and markdown zone, the whole game revolves around the sentiments, you need to be psychologically stronger and be confident with emotions. In both of these zones, volatility shows its game and tries to manipulate the weak hands and maximum of them really fall into their hands.
Fear & Greed Index: Market sentiments are important in these zones and fear and greed indicators can really help while considering the entry times. Fear and greed really help in the accumulation, especially in the Bear Zone, you can use it for your strategy analysis in the Bull Run as well.
Buy Dips Aggressively: Dips are the opportunities, I would say buying dips alone can also be a good accumulation strategy in the Bear market even in the Bull run dips bring a lot of accumulation efficiently. Dips + DCA can be deadly
accumulation combo in the bear trend. patience is the Key.
HODL: Hodl is a complete mind game, not only accumulation is important is more important to stick to it, and HODL should be your pure mindset while accumulating for even a single cycle or for the multicycle. I would recommend reading this thread to know more about the Hodl. HODL is purely a mental challenge
That's all I think, the topic is getting overlengthen.
Hi fellows, As we all know there are different zones in the Bitcoin market cycle, and those who fill their bags for a single cycle or take an interest in multi-cycle accumulation considering Bitcoin's future potential, just need to be aware of the market zones and effective acclamation strategies as here in this post I'm trying to express what I've learned in a couple of months about the Bitcoin's market cycle and by expressing my thoughts I would like to seek guidance from seniors that what they think about am I on right track or not.
Edit:Changed the Subject to testing the desired feedback scenarios, As I was expecting a discussion on the different strategies not praising the DCA.
Introduction to Bitcoin Cycle Zones
Taking market zone to be covered in the same post, I do acknowledge maximum of the fellows already know but for those newbies like me, it will be easy to understand. The Bitcoin market cycle is based on 4 significant zones, Accumulation, Distribution, Markup (Bull Run), and Markdown (Bear Market). Considering important factors, I will try to be more significant in strategies rather than putting redundant information.
First of all, starting from the accumulation zone, in this market zone, whales and investors accumulate Bitcoins taking the realized undervalued market price, In simple accumulation zone is the most suited zone to invest in Bitcoin where the market price of Bitcoin goes lower than the realized bitcoin price.
For the rest, I think the topic is getting lengthened..
In this particular zone, a few more prominent Strategies can be taken for effective Bitcoin accumulation.
Strict DCA: DCA is the most recognized accumulation strategy used by the Bit-coiners to fill up their bags, many different types of DCA exist but here in the accumulation zone investors should prefer the Strict DCA on a particular time span and specific amount on each interval. Smart people consciously use this zone to boost their returns with good decisions but a few newbies and other investors try to wait for the Bottom, which can lead to FOMO later on, by adopting DCA in this zone a much more effective investment can be made as no one can speculation bottom accurately.
Use Limit Buying Orders: You can use the limit order, prepare a long-term buying analysis, and place equal buying orders on the different market support levels, this will greatly help in the volatility, in the accumulation zone compared to the other zones volatility remains constant (Consolidating market), still in case it will help you in decent buying prices.
Try to Avoid FOMO: In the accumulation zone on the initial stage and ending stage of the zone most people fall into the FOMO, better to control their emotions, be conscious while making any decision as it will directly affect your accumulation process, take a close look on the market sentiments and plan accordingly your next buying range & capital of that range to be invested.
Prepare the Emergency Funds:
I was not aware of it firstly while exploring the forum, in the Buy&Hold with a discussion between seniors and JJG, still need to be more familiar with this strategy but what I've learned is this amount should be in the stable currency from which medium you can utilize it in any sort of unexpected market momentum. I'd like to ask here what seniors think about this.
Distribution Zone & Strategies to Follow
The distribution zone in the Bitcoin's market cycle is the profit booking zone for the short-term investors who accumulated Bitcoins earlier in the Bear market & accumulation zone. Here the accumulation does matter for those who are expecting their entry in the market for 2 or 3 cycles or even more. Even in the distribution zone, these Bit coiners accumulate Bitcoins but at a lower rate. Most people don't prefer accumulation here but still, those who are dedicated to Bitcoin or any other narrative (to avoid inflation, Saving mode, etc) do accumulate Bitcoins.
Hybrid DCA: DCA can be an all-rounder for you if you are making entries for a longer period regardless of the market cycle, in the distribution zone you can accumulate by just making a few changes in the DCA, considering market sentiments and changing your interval accordingly the same thing can be done with the capital amount to be invested in the particular entry.
Use Bots: You can use the Bots with a tight range with your buying orders, It's quite similar to the limit orders but here while the market stays consistent and shows lower volatility Bots can really help in effective average buying.
Be Patient and Depends on TA: In the distribution zone, all you need is patience, while taking regular entries control your emotions of greed and fear, do not fall into any traps, and take entries strictly to the Technical analysis to ensure efficient buying prices. Consider most of your entries in the correction times.
Markup & Markdown Zone & Strategies to Follow
In the markup and markdown zone, the whole game revolves around the sentiments, you need to be psychologically stronger and be confident with emotions. In both of these zones, volatility shows its game and tries to manipulate the weak hands and maximum of them really fall into their hands.
Fear & Greed Index: Market sentiments are important in these zones and fear and greed indicators can really help while considering the entry times. Fear and greed really help in the accumulation, especially in the Bear Zone, you can use it for your strategy analysis in the Bull Run as well.
Buy Dips Aggressively: Dips are the opportunities, I would say buying dips alone can also be a good accumulation strategy in the Bear market even in the Bull run dips bring a lot of accumulation efficiently. Dips + DCA can be deadly
accumulation combo in the bear trend. patience is the Key.HODL: Hodl is a complete mind game, not only accumulation is important is more important to stick to it, and HODL should be your pure mindset while accumulating for even a single cycle or for the multicycle. I would recommend reading this thread to know more about the Hodl. HODL is purely a mental challenge
That's all I think, the topic is getting overlengthen.
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