Does it still make sense to dollar cost average when the market is crazy bull?

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Quote from: dunfida on August 30, 2021, 01:16:05 PM

Quote from: 4thewin on April 15, 2021, 10:44:07 AM

Hi, normally I'm a fan of dollar cost averaging. But I'm thinking of not really dollar cost averaging because the market is obviously a very bull market right now for BTC.

What do you think will be the best strategy to enter the bitcoin market today?

Pick the lowest dip I can find say, this week, and invest all my principle. Or, dollar cost average anyway....if so, over what time horizon? Surely not over the next year. Maybe a week? A month?

I personally believe that the train has almost left the station, which is why I am wondering if it makes no sense to dollar cost average at this time.

Depends on you because market cant really be determined whether it would already be going up and this is why its important that you do have at least some idea on what you are doing specially if knowing about the trend.

This is something that differs on each person because we do have our own perspective towards the price and we do have our own goals.Some would consider it as a long term and some do go for short term.
If you arent that really tending to seek profits in short term then i would say that dollar cost averaging isnt really something that you do need to consider on.

Something that only your own understanding will lead you to the right path, if you understand what will be the directions there's
no problem holding after you buy, not even correction takes place you are still in control.

More on how well you expect the current situation. Some may work it out daily and some will keep the ball rolling and hold until it
reached the target that they set it up.

tvplus006

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Quote from: tinopener on April 15, 2021, 11:25:53 AM

I'd say dollar cost average with a smaller amount if you are convinced it is a bull market.

During a bear market, increase the amount.

As a rule, in a bull market, you need to trade bitcoin, increasing its amount and, accordingly, in a bear market, on the contrary, it is necessary to increase the number of stablecoins in the wallet. In this case, you will always have the opportunity, in case of a dump, to buy BTC at a lower price, thereby increasing its amount in the wallet.

leea-1334

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Quote from: passwordnow on August 30, 2021, 03:48:51 PM

Investors that tend to buy during the bull and it's part of DCA, they won't be that much hurt because they'll have a series of buying during the dip. There will always be those that would buy when the market is at high and that's why DCA still works no matter what condition we're at with the market. It is necessary to buy at the dips but you'll never be sure if it's really the lowest that you can pinpoint whenever you've decided to buy.

Is it not wonderful to not worry about bear or bull? I do not mind buying near the top because I will always be sure to get it back at value or higher eventually,,, even if I have to wait for years. And DCA means you never really miss the bottom either, so you always end up being high in positive value. Stop worrying and guessing,,, go DCA!

passwordnow

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Investors that tend to buy during the bull and it's part of DCA, they won't be that much hurt because they'll have a series of buying during the dip. There will always be those that would buy when the market is at high and that's why DCA still works no matter what condition we're at with the market. It is necessary to buy at the dips but you'll never be sure if it's really the lowest that you can pinpoint whenever you've decided to buy.

dunfida

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Quote from: 4thewin on April 15, 2021, 10:44:07 AM

Hi, normally I'm a fan of dollar cost averaging. But I'm thinking of not really dollar cost averaging because the market is obviously a very bull market right now for BTC.

What do you think will be the best strategy to enter the bitcoin market today?

Pick the lowest dip I can find say, this week, and invest all my principle. Or, dollar cost average anyway....if so, over what time horizon? Surely not over the next year. Maybe a week? A month?

I personally believe that the train has almost left the station, which is why I am wondering if it makes no sense to dollar cost average at this time.

Depends on you because market cant really be determined whether it would already be going up and this is why its important that you do have at least some idea on what you are doing specially if knowing about the trend.

This is something that differs on each person because we do have our own perspective towards the price and we do have our own goals.Some would consider it as a long term and some do go for short term.
If you arent that really tending to seek profits in short term then i would say that dollar cost averaging isnt really something that you do need to consider on.

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Quote from: 4thewin on April 15, 2021, 10:44:07 AM

I personally believe that the train has almost left the station, which is why I am wondering if it makes no sense to dollar cost average at this time.

Dollars cost averaging isn't for short term investors. If you're likely going to sell tomorrow or within the shortest timeframe then you don't dollar cost average as that'll be pointless. For example why not just buy into your position when Bitcoin was lower then buying in batches.

Dollar cost averaging help secured long term against volatility of the market and give you the chance of constantly adding to your stacks, it also provide the opportunity of buying Bitcoin at a cheaper rate and overall making your entry point lower.

Dollar cost averaging, I will recommend even when there's a bullish market provided you're a long time investors and not speculating for the short term profits. Bitcoin could be overprotective as sine point and if you just go all him, and it rekted, that might destroy you.

leea-1334

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It makes even more sense to DCA. If you are in crazy bull as you think you are now and yes I know the original post was written a few months ago but guess what it still makes it valid now and in fact when I see posts from April and May and June it proves now close to 50k you were always right to dollar cost.

hatshepsut93

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The point of investing is to buy low and sell high. The prices are low in the bear market and high in the bull market. If you don't have any Bitcoin in bull market, you should only try short-term investment with hopes of selling close to the peak of the bubble. If you already have Bitcoin, then it makes more sense to continuously sell it in the bull market after it crossed some price level that you can confidently say will be the bottom of next bear market.

You could still dollar cost average if you don't plan to sell in the next 4 years, but it won't be the most profitable strategy.

Ridwan Fauzi

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The investment concept will be same like you choose an investment place in stock or traditional market. You have to choose pariode of time before you buy a coin.

In case you will buy bitcoin, first of all you have to know how to buy bitcoin or how to safe bitcoin. Yoh have to choose an exchange that reputable in crypto industry.

Bitcoin is already high, a day ago its price has touched new all time high $65.000 but now seem like it has been correcting. It means, there still a chance for you to lose your money if you buy bitcoin, although you choosing it for long term investment.

Ryker1

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Well perhaps, the Dollar Cost Averaging can still make sense until before the next halving. You were right when you said that the train almost left the station. But it doesn’t mean that you’re not able to chase it and jump in. There will be a lot of bubbles in Bitcoin in the next few days, in that, you can still execute the same strategy you have. However, a small markup still is considered, so perhaps DCA can still be helpful if you are going to jump in on time, that is only my own opinion.

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Quote from: 4thewin on April 15, 2021, 10:44:07 AM

Hi, normally I'm a fan of dollar cost averaging. But I'm thinking of not really dollar cost averaging because the market is obviously a very bull market right now for BTC.

What do you think will be the best strategy to enter the bitcoin market today?

Pick the lowest dip I can find say, this week, and invest all my principle. Or, dollar cost average anyway....if so, over what time horizon? Surely not over the next year. Maybe a week? A month?

I personally believe that the train has almost left the station, which is why I am wondering if it makes no sense to dollar cost average at this time.

It is my opinion that the best thing that you can do is to not doubt your strategy once you have picked one, dollar cost averaging is great for the long term as you're not picking a specific point in time in which you can buy, rather what you are doing is that by buying every single week pretty much with the same amount of dollars then overall you're still going to get some decent amount of bitcoin.

There are obviously times in which this is not optimal like when the market is going through a bull run but that is not really the point of that strategy, so if you do not really feel comfortable using it right now maybe it is time to rethink why you choose that strategy in the first place.

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Of course it makes sense. DCA works always because you can't predict the future. It is always better to do DCA than to try to time the market. If you believe that Bitcoin is going to keep going up in the long run, and that it will reach $100k and eventually $1M, trying to time the market (risking losing) makes no sense.

XZERO1

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Yep, even when we're in a bull market you can not possibly be 100% sure that it won't start the correction in price once you bought or even go for a long downtrend after that, so unless you're totally okay with gambling with your money by going all in at once, that's not a very wise move.

In addition to that dollar cost averaging gives you more comfort while holding since you can just buy if it kept going down from your entry price, in other words it means there's close to zero chance of panic selling in loss while it also gives you a better average entry price at the same time.

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I don't know very much about dollar cost average, i'd simply buy dips and sell when i need to or when i need coins for other important things. If the market keeps going up i would probably sell more of the dips i bought in the past. ..So,this's part of the reasons why it's important not to sell everything when price goes up significantly.
I would occasionally buy a coin if i notice the project continues to develop the right way ,as fast as possible. I would focus on investing in projects that can last long without compromising on community's ideals/principles.

CarnagexD

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Highly dependent on the assets you're investing on. For most of the assets in the market you definitely don't need to DCA since the bull run will do the work for you. But if you're a fan of some cryptos that you know show great potential to grow but is somehow stale or bearish in price, when almost everything is going green, DCA is the way to go for me.

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Quote from: 4thewin on April 15, 2021, 10:44:07 AM

Pick the lowest dip I can find say, this week, and invest all my principle. Or, dollar cost average anyway....if so, over what time horizon? Surely not over the next year. Maybe a week? A month?

Both can work. You need to distinguish your situation and which is strategy that you're comfortable with. We have different situations and one can invest with the DCA strategy because he's comfortable with that while the other, he's just going to wait for the dip and buy at his picked price as the dip but you might find it hard to see if it's the actual dip on this cycle.

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It still does in the long term, although during bull markets I tend to downsize my budget and only buy small amounts to try and save some money should bitcoin go crashing without a moment's notice. I've been doing this for years and I have yet to experience severe losses since I tend to hold on to my coins even when the going gets rough and I bought near the top. It's mostly patience that will save you from losing a lot of money in bitcoin and not really dollar cost averaging on this part, but it still helps to reduce the total amount of your spending on bitcoin.

Caross

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It's bad timing to jump into Bitcoin, as the market is on a bull run I will urge you to hold your ustd and wait for more deep before you buy any price above $60k is high right now. Just my views.

YOSHIE

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Quote from: 4thewin on April 15, 2021, 10:44:07 AM

if so, over what time horizon? Surely not over the next year. Maybe a week? A month?

You yourself are sure that the price of Bitcoin at the end of the year 2021 will be priced at $ 100k, if you are sure that means: the train has not left the station, it is still waiting for passengers to leave.

Today Bitcoin is trading in the crypto market for $ 63,041 meaning that there is still hope for those who have not invested in the future, It is difficult to say in monthly and weekly terms Bitcoin is back to its lowest point, for now the priority is 'confidence' to trade and invest.

The saying goes: backward when in doubt, confident, move forward.

20kevin20

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Are you a long-term investor? Do you expect BTC to be substiantially expensive within years? If you've answered Yes to both questions, then DCA even now. What I love doing is putting an exact sum of USD in BTC every single week. You'll DCA while not even feeling it, and by the time Bitcoin flies you'll be proud of yourself.

It all truly depends on what your goals and beliefs are. If you think Bitcoin is about to dump and are afraid to lose a bit of your investment, better not DCA now. If you believe in BTC and are a long-term hodler, do it. It's all on you and your mindset.

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Buy and sit tight if you don't have the time or skills to read charts. Would it really matter if you bought at $62K or $55K when the price reaches $100K+ in a few months time? Probably not but it's still your choice. This is not the first or second time BTC at over $60K so it could be the new base now.

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Quote from: 4thewin on April 15, 2021, 10:44:07 AM

Hi, normally I'm a fan of dollar cost averaging. But I'm thinking of not really dollar cost averaging because the market is obviously a very bull market right now for BTC.

What do you think will be the best strategy to enter the bitcoin market today?

Pick the lowest dip I can find say, this week, and invest all my principle. Or, dollar cost average anyway....if so, over what time horizon? Surely not over the next year. Maybe a week? A month?

I personally believe that the train has almost left the station, which is why I am wondering if it makes no sense to dollar cost average at this time.

You can still do the dollar cost averaging while buying bitcoin even in the bull market. In a bull market, you will never see a coin which rises continuously.
There are always times when the bitcoin prices drop by 20 to 30%. You can buy in these dips in the bull market and keep doing the dollar cost averaging which is by far a safest investment method.

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Quote from: 4thewin on April 15, 2021, 10:44:07 AM

Hi, normally I'm a fan of dollar cost averaging. But I'm thinking of not really dollar cost averaging because the market is obviously a very bull market right now for BTC.

What do you think will be the best strategy to enter the bitcoin market today?

Pick the lowest dip I can find say, this week, and invest all my principle. Or, dollar cost average anyway....if so, over what time horizon? Surely not over the next year. Maybe a week? A month?

I personally believe that the train has almost left the station, which is why I am wondering if it makes no sense to dollar cost average at this time.

This depends on whether you are in it for the long term or for the short term profits. If you are in it for the long term then keep dollar cost averaging and keep accumulating.
This will increase your portfolio at regular intervals without worrying about the market price.
If you are in it for the short term gains then you should decide on your own whether to take the risk of going all in or wait for a dump to get in at a cheaper price.

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Quote from: 4thewin on April 15, 2021, 10:44:07 AM

I personally believe that the train has almost left the station, which is why I am wondering if it makes no sense to dollar cost average at this time.

We are already reached over 300% of previous all time high so in this case you are right, investing all your capital is not really a good choice for long term investment but if you are looking for short term profits then you should invest right now because we can see clear bump after every correction but we also has the risk of entering into bear market in any time.

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This varies from person to person, some people prefer to wait for the big drop to buy and others buy from the lowest point that Bitcoin reaches on average within a week, for example, in my opinion you can buy now from several points and not from one point, you can choose the Maine time every day and buy a quantity Of bitcoin with only a part of your capital, and so on every day for a week or a month, for example, so you can get a good average price during this period because you bought from multiple levels and not from one level and then you are waiting for the rise and so I think that you will come out a winner in the end.

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Quote from: 4thewin on April 15, 2021, 10:44:07 AM

Pick the lowest dip I can find say, this week, and invest all my principle. Or, dollar cost average anyway....if so, over what time horizon? Surely not over the next year. Maybe a week? A month?

If it's just for a week/month, so it's better to avoid DCA and try to get the support and resistance zone for bitcoin as well to take entry on it. But DCA will be the option if anyone's willing to hodl BTC for longer period of time because those are now on profits who started doing DCA back in 2017-18 bull run. So, it's never late for anyone to buy bitcoin or DCA on it for longer period of time, IMO.

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Quote from: 4thewin on April 15, 2021, 10:44:07 AM

Hi, normally I'm a fan of dollar cost averaging. But I'm thinking of not really dollar cost averaging because the market is obviously a very bull market right now for BTC.

What do you think will be the best strategy to enter the bitcoin market today?

Pick the lowest dip I can find say, this week, and invest all my principle. Or, dollar cost average anyway....if so, over what time horizon? Surely not over the next year. Maybe a week? A month?

I personally believe that the train has almost left the station, which is why I am wondering if it makes no sense to dollar cost average at this time.

If you are not a new investor and already has some bitcoin at your wallet, it's not really the best time for dollar cost averaging. It is purely time for swing trading. Buy at every dip and sell at every high. That way you can make a good amount of money out of this. If you want to do dollar cost averaging, you will end up increasing the average cost of your holding and nothing else. So don't do DCA now, rather trade to make money!

aoluain

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Patience is the key, the markets will always produce opportunities to practice
dollar cost averaging.

In this cycle we are in where the price is moving upwards we can still DCA because
we are looking to the future. Not everyone is in a position to study movements and
charts so the DCA strategy works really well.

At $62,000 today I will buy confident that the price will be at least $70,000 and with
the amount I purchase with a fluctuation of a few percentage points isnt a
deal breaker.

tinopener

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I'd say dollar cost average with a smaller amount if you are convinced it is a bull market.

During a bear market, increase the amount.

Sterbens

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do not rush, the market will give you the right space. You cannot enter the market if you are only interested in the increase in bitcoin which continues to reach its peak. There are times when you have the opportunity to take advantage of dollar cost averaging on bitcoin correction limits. time is still long and you can collect Satoshi. although currently entering the Bullish market will only be stressful, so try to prepare a few bucks to enter with an average ratio of 50: 50 when bitcoin prices stabilize.

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Quote from: 4thewin on April 15, 2021, 10:44:07 AM

Hi, normally I'm a fan of dollar cost averaging. But I'm thinking of not really dollar cost averaging because the market is obviously a very bull market right now for BTC.

What do you think will be the best strategy to enter the bitcoin market today?

Pick the lowest dip I can find say, this week, and invest all my principle. Or, dollar cost average anyway....if so, over what time horizon? Surely not over the next year. Maybe a week? A month?

I personally believe that the train has almost left the station, which is why I am wondering if it makes no sense to dollar cost average at this time.

Source

Quote

Dollar-cost averaging (DCA) is an investment strategy in which an investor divides up the total amount to be invested across periodic purchases of a target asset in an effort to reduce the impact of volatility on the overall purchase.

So the answer to your question is it doesn't make sense at all. The volatility of Bitcoin would not be reduced like a big decrement for its volatility, eve in the dip. Therefore you may disregard the Dollar Cost Average method and stick to the "wait for the dip" because that more realistic and a sure way to earn profits in no time. Instead of taking its volatility as a disadvantage on buying, take it as a advantage because that is how it should be if you know when to enter and exit the market to secure your profit.

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Hi, normally I'm a fan of dollar cost averaging. But I'm thinking of not really dollar cost averaging because the market is obviously a very bull market right now for BTC.

What do you think will be the best strategy to enter the bitcoin market today?

Pick the lowest dip I can find say, this week, and invest all my principle. Or, dollar cost average anyway....if so, over what time horizon? Surely not over the next year. Maybe a week? A month?

I personally believe that the train has almost left the station, which is why I am wondering if it makes no sense to dollar cost average at this time.

Topic: Does it still make sense to dollar cost average when the market is crazy bull? (Read 265 times)