DCA'ing isnt a bad strategy - page 3.

Dr.Bitcoin_Strange

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Quote from: Macoach on September 08, 2023, 10:50:15 AM

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).

Dollar cost averaging is a known strategy used by Bitcoiners while investing in Bitcoin. Talking about crypto means you're generally referring to DAC as a strategy that can be used to invest in all altcoins. I think you should be specific.

Quote

Dollar-cost averaging means putting the same amount of money into an investment over time.

DCA doesn't necessarily mean that you will only have to be investing specific amounts at your planned time, you can do it your way, depending on the cash flow, or you can equally have a shift in your allocation amount. Let's say your total earnings for the month of January were $3k, and you decided to invest $1k into Bitcoin. In the following month, if your total earnings were $5k, you could decide to invest $2k into Bitcoin. Also, let's say if you have a huge amount of money, like $50k, and you don't want to invest it all at once into Bitcoin, you could then decide to invest $1000 every week. In some weeks, you could decide to allocate more than the usual $1k or less.

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Quote from: Macoach on September 08, 2023, 10:50:15 AM

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?

I think that DCA strategy is ok, since BTC investment is long term. However, the thing that matters is the sum of money affordable to invest. It depends on the income of an investor. Some people lose their chances to hodl sucesfully, since they don't invest money they could invest, while others invest much more than they can afford, and end up withdrawing money in a hurry, often during the bear market, in order to pay the debts or to fulfill their basic needs. So the main thing everyone should establish is the amount of money they can invest monthly, this should be based on their real (not illusional) financial abilities.

coinerer

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Quote from: Crypto Library on September 08, 2023, 11:09:31 AM

Does it need to say, dude . In my personal opinion, I think DCA strategy is the best for most of the person.
If you divide investors into different categories, then there will be less category of professional traders who know more about technical analysis. And there are few people who can hold a lot of funds at once for investment. Here is my real point. Now if they are going to invest, one of the best ways for them is to make investments through dollar cost averaging. I think if someone invests in Bitcoin like this for five years or with some strategy like that than keeping money in the bank, then I think he can earn more profit from this investment than the APR he will get in the bank.
I myself have taken a study to invest an amount of Bitcoin weekly or monthly for five years or more than that time.

DCA strategy is best for every business and investment. If we buy any other physical or digital commodity other than Bitcoin whose price fluctuates all the time then there is a possibility of loss from them. so it would be very wise to follow DCA strategy. Because it always helps to minimize loss and risk. If a person does not follow DCA and invests all the money in one transaction at the same time, while it may give him quick profit, also there is a high risk of huge loss.

JunaidAzizi

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Quote from: Macoach on September 08, 2023, 10:50:15 AM

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

According to the current market conditions which are volatile and uncertain you can't predict it or hard to it. The dollar cost strategy is good which reduces the risk involved in cryptocurrency by investing a small amount of money. Investing a small amount will protect you from affected short-term price fluctuation but using the DCA strategy you will not make more wealth but a small one. This strategy in my view is best for those who are new in the world of cryptocurrency because it can reduce the risk of losing their money as they are less knowledgeable and have zero experience but if you are a professional, skilled, and experienced one I suggest you to use Lum Sum. It requires a big investment and returns double its profit.

Oasisman

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Quote from: Macoach on September 08, 2023, 10:50:15 AM

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

Depends on how much risk appetite you have and how much capital you have available on hand. Let's say you have $100k ready to put in bitcoin and you are just waiting for the price to drop at the lowest possible entry point. This method could be confusing for you if the targeted entry point did not meet while the price was going down and once it started to bounce back up again, you'll either miss the dump or buy at a not so cheap price range. Both method could be confusing and of course bears risk, most people just don't want to miss the possible bottom so they are favoring the DCA method to make sure they're not missing too many of those.

kryptqnick

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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.

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Even if you have the money for DCA I will like to advice you to invest only what you can afford to lose, many people are not telling you this, instead they will tell you to keep dollar cost averaging, and this comes with some risks too.

You can DCA and still end up with bad results, who told you that after you DCA for either a short period of time or a long period of time the market won't decline? You can target 2024 as bull run and you start DCA into your favourite assets and by the time 2024 comes something new hit the financial world.

So anything is possible when investing, that's why we need to do this with only what we can afford to lose, to avoid story that touches, also do not forget to live, investment is not a do or die, do what you can and hope for the best, remember always that health is the real wealth.

GreatArkansas

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Quote from: Ziskinberg on September 09, 2023, 05:14:58 AM

DCA is a common practice by most and why? It is because it was found effective. If you can't afford to buy coins in bulk, this strategy is the best thing to consider, and much work in a volatile market.

We should be smart in dealing with the market situation because investing in crypto isn't just all about money but also, it is all about how we strategies in buying. Isn't actually bad about using a lump sum of money because even using the DCA'ng strategy if can't adjust and afford to hold when the market dumps more, we all still lose.

Exactly, it's just another way of investing. Doing DCA is the best if you are afraid of not well entered properly, it's just minimizing the risk, or dividing your entry in different prices because we don't know what will happen next on the price, especially if you are cryptocurrency, it's extremely volatile where sometimes price are unexpected.

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Quote from: ZAINmalik75 on September 08, 2023, 12:39:21 PM

Quote from: Juse14 on September 08, 2023, 11:27:21 AM

As far as I know DCA is to determine how much money to invest, then make a time period/schedule to make purchases with the same number of purchases up to the total investment target amount.

And this is very effective for investors who have long-term plans, whether they have big profits or not, this depends on how long you hold Bitcoin and the cycle you enter the market, this will determine how big or small the profits are.
If you enter at the beginning of Q4 at the end of 2022, and make the investment period until March, surely you will get a sizable profit in June and July.

You are right, but as far as I know the time period of holding the BTC which are accumulated by doing DCA is longer then 1 or 2 years. i have seen people doing DCA whole year or maybe more then 2 years who know for how many years. But all that matters for them is to get more satoshi. So from them and from my own experience I can say for sure that DCA is the best thing if you wanted to do holding for like 2 or 3 halving. But if you are looking for instant profits in lesser time then Lump Sum is the only thing we should prefer because it could provide better results than DCA if we are talking about shorter timespan.

Snip
DCA is for those who have bigger plans while buying at dips, or doing Lump Sum does not meant that it will generate you high results in short time period too because proper analysis is also necassary. And if the path to success is as easy as it seems then almost everyone try to accumulate BTC more and more

But for Lump Sump requires the right timing can be calculated can provide benefits in the near future, and it is far more difficult and risky if the short-term investment target that is done is not as expected at the end of the planned time, this will provide The impact of excessive depression in my opinion, and which ultimately has to hold a long bitcoin to be able to provide benefits, so it is better DCA than Lump Sum.

This is because it is influenced by mental, it is difficult to build mentality to have a large planning and shabar the occurrence of very high market fluctuations, that is what makes it difficult for someone to do it, and on average people really want fast profits, therefore they enter when the market is green.

KingsDen

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Even outside the cryptocurrency world, the dollar cost averaging method of investment has been proven to be one of the best method to accumulate wealth. The dollar cost averaging method is very much appreciated in anything that has to do with volatility, such as cryptocurrency or stocks. The dollar cost averaging does not only ease the investor in his investment, it also mitigate losses and then give profits at the long-run. The only thing that is expected in the dollar cost averaging method of investment is discipline and consistency.

If you are disciplined about your investment with the dollar cost averaging method, no matter how little your investment is, over time it is going to worth it. I strongly advise anyone who does not understand the chart to continue investment with dollar cost averaging method. It will give you some peace of mind and security of investment.

Ziskinberg

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DCA is a common practice by most and why? It is because it was found effective. If you can't afford to buy coins in bulk, this strategy is the best thing to consider, and much work in a volatile market.

We should be smart in dealing with the market situation because investing in crypto isn't just all about money but also, it is all about how we strategies in buying. Isn't actually bad about using a lump sum of money because even using the DCA'ng strategy if can't adjust and afford to hold when the market dumps more, we all still lose.

Blitzboy

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DCA gives people a sense of security. DCA is like a soothing playlist that you listen to over and over again. It gives you predictability in the middle of chaos. You're basically playing the long game, which is a very patient thing to do.

On the other hand, one-time investments? It's the music to a movie about a robbery gone wrong. High payoff for high risk. Remember the year? When Bitcoin's price went up and down so much? A big sum could have been like a roller coaster, making you feel either elated or sick to your stomach.

Personally? Based on how the market is right now, I'm moving toward DCA. Even though it may not be as exciting, a sense of boredom or disinterest in business can be a strength in and of itself.

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Quote from: Macoach on September 08, 2023, 10:50:15 AM

-snip-

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

Bitcoin investors target big profits when the price increase reaches its highest level. It is possible that currently they continue to fill their asset list using the DCA method or by buying large amounts of money at once while waiting for the new ATH.

For my class, perhaps the DCA method is more convenient than buying large quantities at once.
Regarding large profits in a short time it may not happen with bitcoin. Usually people will not be patient with the DCA method because it is boring. Investors who have the ambition to make quick profits will prefer to take risks on shitcoins. They dare to buy large amounts of money for the desired profit. It is not uncommon for those who do this to end up losing a certain amount of money.

Popkon6

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Quote from: Macoach on September 08, 2023, 10:50:15 AM

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?

One of the ways to invest in Bitcoin is the DCA method. Investing using the DCA method will give you an incentive to invest later, because the money you want to invest in the current market will give you an incentive to invest Bitcoin later if you invest using this method. Invest when the market is down because the opportunity is there now but may not be available later. Bitcoin halving is in the future for which the current market is bearish so it is the only opportunity for holders to buy. So with a quick DCA approach to bitcoins that you hold for a long time, you will definitely own a whale of a fortune.

lombok

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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.

cafter

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I do DCA every 5 days means accumulating 6 times a month, it helps me to stay disciplined, buying not at bottom not at top but on average,
DCA help me to avoid making impulsive decisions based on fear or greed. when prices are booming everyday, it's easy to invest a lump sum and later panic selling during a downturn. DCA encourages a more measured approach, reducing the emotional rollercoaster of investing.

Helena Yu

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The best strategy to buy cryptocurrency or altcoins is buy ASAP and sell it after few minutes, hours or few days because DCA-ing altcoins will make you suffer huge losses due to many risks e.g. hacked, scam, centralized etc.

While the best strategy to buy Bitcoin is DCA-ing because Bitcoin price tend to rise every 4 years and it's good for long term holding.

Wind_FURY

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Quote from: Macoach on September 08, 2023, 10:50:15 AM

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?

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. Cool

bayu7adi

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My preferred method thus far has been Dollar-Cost Averaging (DCA). It suits me far better than waiting for price movements to reach my target. DCA is more realistic than trying to time the market bottom, even though the gains may be modest, they still constitute profits. In my view, DCA is a wiser approach as it minimizes the existing risks. As long as we can survive and continue to generate gains with this strategy, it signifies that we possess a more stable financial source compared to going all in, and if you get caught in a price trap, it becomes challenging to maneuver.

From various pieces of advice I've gathered from other crypto communities, DCA is still more frequently applied than making large purchases at a single entry point or even going all in, which I find quite reckless. The focus should be on profit, even if it's modest, as long as it's steady, it's better.

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Quote from: Macoach on September 08, 2023, 10:50:15 AM

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

The lump sum purchase method and the DCA purchase method have their respective advantages and disadvantages. The lump sum purchasing method will get high profits if after purchasing the price continues to rise, but if the price falls then they will lose money and it will take time for the price to recover. For the DCA method, they would be better off if after buying bitcoin the price continues to fall, on the next purchase we will get a cheaper bitcoin price, but if the price of bitcoin continues to rise then they miss the bottom price and are forced to buy bitcoin at a more expensive price

In my opinion there is no right or wrong, it would be better if the bitcoin purchasing model was adjusted to analysis and finance

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