Dollar Cost averaging help | Bitcointalksearch.org

Anonymous100

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Quote from: udayantha11 on July 27, 2021, 09:58:19 AM

someone told me DCA is best for high fluctuate investments

If i have 1000$ (Still dont have need to save from job)

what is best way to do DCA?

100$ in BTC every month or what is the best way?

I think $100 in BTC is a very small amount. Even though the BTC price change is high, the profit you get is also very low. Because the price of BTC is already very high, so $100 is meaningless if you invest. It would be nice if you invest in low value coins. Or you use $1000 in BTC.

bitcon

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I think that it is a good strategy, actually. I follow it on my own as well. You never know if it is a full dip or not, so it is better to average your price every month like I do. This way you will not regret that you haven't bought on really good levels.
So 100$ every month in Bitcoin is a good strategy. You don't even need to check charts constantly, so you can be calm about your investments.

apa don

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Some time ago I bought bitcoin once a month for 10% of my income. I did this only for three months because then the price increased too much.
In a bear market i'll do this again.

Yes, that's a good step, but think about it the other way around, whether by buying another altcoin we will lose, of course not because by understanding other altcoins we can also get bitcoins as we want, and bitcoin for now is indeed improving However, understanding the crypto market assets is better than taking the steps that should be taken.

hd49728

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Quote from: TheUltraElite on July 28, 2021, 02:35:46 AM

Please read this: https://www.investopedia.com/terms/d/dollarcostaveraging.asp

In my opinion though, DCA becomes less important when the prices keep on rising and rising. It woudl better to develop a liking for some specific support/resistance levels and buy at that support when you have liquid cash at hand. That too only bitcoin. Please dont spend your earnings for buying altcoins, they are just not worth it. Some short term gains they may show but you will soon be left with holding altcoin bags before your see them plunging down.

DCA is best when the market is bearish and almost reaches its bottom area. The market in late of 2018 to late of 2019 is very good for DCA. If you do DCA in bear market, you have to be very patience, because price can fall after each of your DCA. And you have to wait a few months or a couple of years to see price begins its new bull run.

DCA brings faster profit in bull market but ROI will not be as big as in bear market.

Shallow

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Quote from: udayantha11 on July 27, 2021, 09:58:19 AM

someone told me DCA is best for high fluctuate investments

If i have 1000$ (Still dont have need to save from job)

what is best way to do DCA?

100$ in BTC every month or what is the best way?

DCA is very good but it is very important to know when to do DCA and when to ignore, also it is important to know that not all coins or tokens you can do DCA for, this is because where some will be legit to last long term others might not. A more understanding, first you must have a target else you will just keep buying and might run out of cash; now assuming you want to buy Bitcoin, you can buy it anytime the price corrects or anytime it dumps but with a specific amount, then you wait again to buy, but if it rather pumps you wait for price correction because Bitcoin always do such.
Also, in the case of some tokens, assuming you buy and it dumps, you can DCA by buying again such that when it pumps, you can be in good profit. Like I said, not all tokens are worth doing DCA for, because in some the dumping might be a way that the team want to exit scam.

southerngentuk

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Use idle money to buy and if possible to minimize the large ranges you may encounter you can do it on a small timeframe. I like to start DCA during a bear market and by the time it starts to go up we can get a nice payoff, the ideal time I spent on ETH as I bought them at that point. $600 and it took a really long time, but the results are amazing.

aylabadia05

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As far as I know, DCA seems to be more towards Altcoins, so I don't dare to comment further, I'm afraid I'm wrong.
$100 in a month is good enough to buy BTC in my opinion. If you do that systematically, I believe you will be successful in the crypto world.

MarjorieZimmermanGinger

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Quote from: udayantha11 on July 27, 2021, 09:58:19 AM

someone told me DCA is best for high fluctuate investments

If i have 1000$ (Still dont have need to save from job)

what is best way to do DCA?

100$ in BTC every month or what is the best way?

Someone gives you information, but can you trust the information, the investment world is not always true what people say, you need to analyze what people say for yourself. Otherwise, when something untoward happens, then you will be very sorry and try to blame the person.

DCA itself has a pattern that is very suitable for use by beginners in investing, DCA must be purchased continuously, gradually and binding in the maximum period of time, this pattern must really be done by people who want to invest, especially for beginners. This method is almost the same as investing in cion memes, considering that it requires a period of time to use DCA, a minimum period of 3 or 4 years.

FairUser

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it's very good if you have a clear plan for a crypto, personally I've been DCA for a long time with BTC going from $5k to around $15k. And I understood the problem from DCA helping me to have a better mentality with the market, when there was a sufficient amount of accumulation and there came a time when the market exploded.

but I still want to reiterate, just use your idle money to invest, don't let yourself get into a difficult situation with this market. Make the market your tool, and don't make yourself the market's tool.

cryptoaddictchie

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Quote from: udayantha11 on July 27, 2021, 09:58:19 AM

someone told me DCA is best for high fluctuate investments

If i have 1000$ (Still dont have need to save from job)

what is best way to do DCA?

100$ in BTC every month or what is the best way?

If the price of btc is super down. I think its better to buy it at a lower price one time than to do a dca on it. I think thats a pretty good move for me. Just a suggestion cause you dont know if the price would go up then you just manage to average it. Its also applicable but its always better to take advantage of a good entry price. My suggestion is only works for this kind of scenario but if its like this time then dca is good to limit the price to its movement.

TheUltraElite

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I myself do not know what DCA is? is it an old coin that has been successful in the past so that it can be a good investment choice at this time? try to tell me about the ins and outs of DCA first.

I feel bad after reading your post that you do not know what Dollar Cost Averaging is and you have been a part of a forum that talks about cryptocurrenices for over Sever years now. I have a feeling your might already know about the process but you did not know the specific term for it.

Just dont take every three letter short form to be another altcoin. Cheesy

Please read this: https://www.investopedia.com/terms/d/dollarcostaveraging.asp

In my opinion though, DCA becomes less important when the prices keep on rising and rising. It woudl better to develop a liking for some specific support/resistance levels and buy at that support when you have liquid cash at hand. That too only bitcoin. Please dont spend your earnings for buying altcoins, they are just not worth it. Some short term gains they may show but you will soon be left with holding altcoin bags before your see them plunging down.

Husnain651

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Dollar cost averaging is an investing strategy that can help you lower the amount you pay for investments and minimize risk. Instead of purchasing investments at a single price point, with dollar cost averaging you buy in smaller amounts at regular intervals, regardless of price

wheelz1200

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Quote from: udayantha11 on July 27, 2021, 09:58:19 AM

someone told me DCA is best for high fluctuate investments

If i have 1000$ (Still dont have need to save from job)

what is best way to do DCA?

100$ in BTC every month or what is the best way?

Dollar cost averaging does work but not for high risk alts. Some of those gets one pump and ypu are just throwing your money into what might become extinct. When you are talking about bitcoin then yes DCA is a good way to limit downside risk while being able to take advantage of upswings. It also takes the emotion out of trading and allows you to avoid endlessly looking at charts.

Gayong88

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There are many investment options, one of which, as you said, is also possible, in my view. If we trade with a capital of $1000 in a coin that has a fast spin, for example, AXS, I think the profit can be more than 10% in the longest 5 days with a record always waiting for the right moment to enter the market. opportunities and choices always come especially during corrections almost every day. Patience is the main key to increasing profits in trading.

tabas

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You give your set and date, you buy $100 every week or every month. As long as you're going to keep buying consistently, that's DCA is all about.
You can even buy every other day if you want as long as it's within the budget that you have.

hd49728

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Quote from: udayantha11 on July 27, 2021, 09:58:19 AM

someone told me DCA is best for high fluctuate investments

If i have 1000$ (Still dont have need to save from job)

what is best way to do DCA?

100$ in BTC every month or what is the best way?

https://dcabtc.com/
It is a website to estimate for your DCA. If you want to buy $100 Bitcoin every month, you can make a plan like this:

Wait days in each month when Bitcoin is in red with more than -5% to -10%. If price falls more than -10% to -15%, it is great discount for you to do DCA in that month.

Do it in 10 months and finish your plan. It takes you 10 months and you need to be patience with your plan.

The market punish impatient people and steal money from them, then distribute it to patient people.

Jawhead999

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I think your above example already good, if you want more safe (low risk, but low return) you could buy Bitcoin every week or even every day. There's no such best way to do DCA, because you're looking for the long term return so you doesn't really need analysis like trader.

You could visit this site [1] what if you do DCA in certain time and how much the return (it's only a statistic, not predicting price in the future)

[1] https://dcabtc.com/

Rikafip

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DCA indeed works, but only if you decide to buy something that is good for you long term hodl, meaning you should avoid 99.99% of the altcoins especially meme coins and other similar crap) and instead get something that can survive the bear market, which will inevitably come. The only alt I would consider buying using DCA is ETH and nothing else.

And yeah, something like buying $100 worth of crypto once per month is a good tactic. You don't have to save $1000 first and start investing, but simply buy as much crypto as you can (and how much you are willing to loose).

udayantha11

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2023 would most likely be as bearish as 2022

someone told me DCA is best for high fluctuate investments

If i have 1000$ (Still dont have need to save from job)

what is best way to do DCA?

100$ in BTC every month or what is the best way?

Topic: Dollar Cost averaging help (Read 181 times)