Topic: DCA'ing isnt a bad strategy - page 2. (Read 617 times)

A clever Bitcoin collector will combine the two options....

You do not simply buy on a regular basis, for the sake of buying.... you rather accumulate some Fiat savings and then buy bitcoins when the price are low. Why should you follow a DCA strategy that will force you to buy at regular intervals during high prices, when you can hoard your savings and buy at low prices.

The combined strategy will increase your profits, because you are buying bitcoins at low prices. (Also, sell bitcoins at high prices and then wait for it to dip to buy more coins) 

What is your opinion?
And and which method do you prefer to be used in this present market conditions?

3. It's automatic and can take concerns about when to invest out of your hands.

People are trying to figure out the best way to invest in cryptocurrency because it can be very unpredictable. If you're an investor looking to reduce your risk, you might consider a strategy called dollar-cost averaging (DCA). However, using this strategy means you're less likely to make really big profits.

Dollar-cost averaging means putting the same amount of money into an investment over time. It's nice because it makes investors feel more comfortable. By spreading out your Bitcoin purchases over time, you're either buying when it's doing well, or you're getting it at a lower price compared to your first purchase, which is a good thing.

Some people prefer to invest a large lump sum all at once because you might end up with more Bitcoin quickly. But there's also a chance you'll end up with less. To decide between these two methods, you need to think about the risk involved.

If you want a bigger chance of making a lot of money, go for the lump sum. If you want to slowly accumulate Bitcoin with the least risk (even if it means having less Bitcoin in the end), then DCA is better. For most regular people who just want to accumulate Bitcoin, DCA is a good choice because it helps you get a decent amount of Bitcoin based on the money you have to invest.

What is your opinion?
And and which method do you prefer to be used in this present market conditions?

What is your opinion?
And and which method do you prefer to be used in this present market conditions?

If you're an investor looking to reduce your risk, you might consider a strategy called dollar-co0st averaging (DCA). However, using this strategy means you're less likely to make really big profits.

People are trying to figure out the best way to invest in cryptocurrency because it can be very unpredictable. If you're an investor looking to reduce your risk, you might consider a strategy called dollar-cost averaging (DCA). However, using this strategy means you're less likely to make really big profits.

Dollar-cost averaging means putting the same amount of money into an investment over time. It's nice because it makes investors feel more comfortable. By spreading out your Bitcoin purchases over time, you're either buying when it's doing well, or you're getting it at a lower price compared to your first purchase, which is a good thing.

Some people prefer to invest a large lump sum all at once because you might end up with more Bitcoin quickly. But there's also a chance you'll end up with less. To decide between these two methods, you need to think about the risk involved.

If you want a bigger chance of making a lot of money, go for the lump sum. If you want to slowly accumulate Bitcoin with the least risk (even if it means having less Bitcoin in the end), then DCA is better. For most regular people who just want to accumulate Bitcoin, DCA is a good choice because it helps you get a decent amount of Bitcoin based on the money you have to invest.

What is your opinion?
And and which method do you prefer to be used in this present market conditions?

If you're using fundamental and technical analysis before you start to buy Bitcoin, it's not DCA anymore because you're looking to buy Bitcoin at the lowest or you want to make short term profit. DCA strategy is when you buy Bitcoin regularly every day(s), week(s), or month(s) regardless the price is and you're keep holding since DCA is for long term goal. If you can't do that it's fine, maybe DCA isn't for you.

Conclusion. In my opinion, no matter how good our trading method is, Fundametal and Technical analysis is the key to everything. DCA will function effectively if combined with appropriate and correct analysis.

We are in a bear market, and that's good for those who don't have a lot of money to invest, instead of trying hard to DCA into Bitcoin every time it's better and more profitable to hunt the massive dips.

Confused? Here is an example.

I stored my money in stable coin and wait for good dips, like the first dip that happened last year, around 17k per Bitcoin, I went heavily on that, some amount that could take me four months to DCA in Bitcoin, and the second one happened when Bitcoin dips to 15k, this way I am still in profit with Bitcoin, compare to those who DCA since 30k per btc down to 25k now, it doesn't make much sense, does it?

In every bear market, let the dips be your calling, the proper time to throw in some money, like I've said already, we are still in a bear market anyways, just imagine if Bitcoin dips back to 15,000$ in this September. I will go right in again, this is the best DCA strategy.

What is your opinion?
And and which method do you prefer to be used in this present market conditions?

this DCA strategy has been used by traders thru the years, and the application depends on their targets here. and if it is appropriate with the situation.
futures for me requires a very good knowledge of the market you are going into. because in this market, you can easily get liquidated if you are not fast enough.

I can see that the majority here support the DCA as a good investment strategy. Of course, there are some risks, as DCA doesn't guarantee a positive outcome and can lead to buying at an unfavourable price. Some say it's a strategy for beginners, but honestly, i think it's just good for anyone who doesn't want to drown in researching the market and emotional rollercoasters of making right or wrong decisions. It's also safer because if a person buys a lot at an unfortunate time, it's worse than buying a part at a good time and a part at a bad time.

this DCA strategy has been used by traders thru the years, and the application depends on their targets here. and if it is appropriate with the situation.
futures for me requires a very good knowledge of the market you are going into. because in this market, you can easily get liquidated if you are not fast enough.

This method is still widely used by traders in situations like now as well as traders who play in the spot area because it is more suitable for them to use. Apart from that, this also makes it easier for traders to manage their own capital even if it is used multiple times every week or month.

Futures is more about guessing trading signals and this is quite difficult to do and not easy for everyone so using the DCA method is not suitable, especially in conditions like now which are very uncertain so the chance of losing is always much greater than winning.

Why not do a little of both lump sum strategy, and some DCA done in between if Bitcoin is in a price discount? But for plebs like me who have limited capital, it's probably better to buy the DIPs during bear cycles than trying DCA to sprwad their risk. We don't have the right amount of capital like the billionaires to do that.

Plus the money printers have their own 4-year cycle too. Satoshi timed it very well.

Spot crypto (cyrpto spot market) purchases are very suitable using DCA. This is very useful in any market situation, especially during a bearish market. When we are aiming for long-term investments, DCA is highly recommended to use.

Different from Futures, even though DCA can be used in the futures market, the risk of getting a Margin call is very high if the balance we use is not able to provide high liquidity. So the DCA method is not suitable for the futures market.