Topic: Dollar Cost Averaging with costavg.com include exchange fee (Read 620 times)

Thank you for this, going external is not just necessary in DCA. In my last reply here, I warned people a lot about this, and this is the reason why people are being scammed easily, they are too lazy to know what to do and do it rightly without involving other parties even as it is very simple to do. Instead, they only look for the software, apps, websites or even individuals and social media handles to tell them what to do. No wonder a lot was swindled with their money with unproductive tools in the past when it came to trading and investment. If at all, I know of some people who wanted over $2,500 in the purchase of some trading/investment systems that later proved to be useless.

We should be wise, the DCA is not what was just known during the cryptocurrency era, it has been known and utilized centuries ago with diverse assets. If they've been using it effectively and successfully to earn and avoid missing out on opportunities then without any hassle, is it this time that it becomes a complex issue?

It's simply about knowing your asset and dividing the capital you want to invest into equal parts (I love the 10 equal parts, which are also the commonest). Then invest each part per period, which could be daily, weekly, or monthly in most cases depending on the asset and your goal towards it. Is that not simple enough? Why use an external app/website for it again? People just can't stop to surprise me.

Investors actually need exchanges to purchase bitcoins because other options like Person to Person trade is risky without Escrow. You will have safer purchasing experience when buying on a centralized exchanges if you are not familiar with Peer-to-Peer trade.

DCA in theory can be applied with scheduled regular purchases  like daily, weekly, monthly or quarterly but if you can not afford your capital to do regular purchase, you can simply accumulate bitcoin when you have free capital.

Investing and trading are different and people must store their fund for trading and for investing in different accounts, wallets. If they store two capitals for investing and trading in a same account, they will not control their activities well and no longer be able to be investor, but change to be a trader.

With DCA, we spend little of our money to purchase bitcoin each time but with time, after a while like one year, two years, we will be shocked when look at our portfolio and see how much money we already spent for our Bitcoin investment.

DCA has always been a great way to make investments in crypto. Anyway, The importance I see with this tool is that it shows you what you’d have made so helpfully you now make the move and do the necessary investment you should have done in the first place. If you’re trying to bring someone into crypto from the grounds that they can make money holding them this is a great tool to convince them.

However, investing for a long time and trading aren't the same. So for those we are trading, we do not often follow the DCA. No doubt, DCA is the best way to build our portfolio. We can get a high return once a year if we can hold it for a long time. DCA seems like traditional Bank DPS system, but Bitcoin DCA investing return would high. For newbies and middle-class families, it's hard to invest a large amount at once. So the DCA is the best way for them. It doesn't mean we can't follow, but it depends on our goals. 

You're right, indeed. It's a great tool to analyse past DCA investments, I was actually wondering what my current average purchase price is, after over 3 years of accumulating Bitcoin. It used to be at approximately $28,000, but it's been over a year since I last calculated it.

It's never too late to purchase, however, some periods are better than others. One thing is certain though, Bitcoin's value will keep rising, so we better acquire as much as we can now.

These tools are great way to see results of previous DCA. Like you can see how much is ROI if I invested 100$ into Bitcoin every week for 5 years and based on results one can adjust his strategy for future investment. How effective is DCA, one can see that from these websites.

Forget about early 2022, its early 2024 now and if you are in Bitcoin since 2022 then you must have necessary knowledge that can tell you how to gather Bitcoin now. It's never too late to buy Bitcoin.   

DCA not require amy specific exchange or any introduction you just follow the DCA strategy and set the target for every weeks or month. and always invest such amount of money which amount you afford to hold for long term. then you will be success in the holding amd DCA will minimize your risk of investment

I wasn't aware of the website; it's a useful simplification of the DCA method. In any case, Excel works too; along with a few functions, it can even provide statistical analysis. The DCA method is generally pretty straightforward, just like EarnOnVictor already mentioned. Despite that, it's still a decent and informative tool.

I'd just like to add that, as Franky1 mentioned, the DCA method can be "modified" by adjusting your investment amounts depending on Bitcoin's price. Early 2022, for instance, was a great accumulation period; I wish I had taken more advantage of it.

DCA is actually something even newbies entering the field of cryptocurrency can do if they immediately decide to buy Bitcoin or other cryptocurrencies they want, because DCA is actually not difficult to do. You will only accumulate bitcoin little by little when you have extra money for it.

And it is also an advantage when an individual investor has a large source of income, especially if he has several businesses managed in the traditional business industry. And most of all this is easy also for the rich person who are open for this kind of investment in Bitcoin.

You can use third party websites, tools for estimating your DCA plans and what you can get from it. By input some parameters and get DCA results backward, you can speculate what you might get onwards.

With actual purchases, some exchanges allow you to execute regular purchases with set-up time frame between two purchases. I don't know how many people like and use it because personally I see very little demand to use it. It's always easy to login my account and make a purchase for DCA.

How to Use Recurring Buy?

I have never used any kind of third-party app, website, or software for doing DCA (Doller-cost-average) even I would never suggest anyone to use applications or websites for doing DCA as these applications are automated and sometimes take undesired entry into the market that you do not want besides that manual dollar cost averaging is the most recommended part as you can take any of the entry whenever you want.

Sometimes you do not want to make any entry in the market and that day you can miss taking entry into the market and you may be waiting for some moments of markets to occur and from that time you can start taking entries again in the market as usual. There may be some other consideration that investors can keep in their mind which is some comfort market zones they can take one to two entries as per day if the market allows them to make more than one entry per day.

Nice website to track your DCA and the prospect that you're getting out of your investments but I'd rather be someone that's doing DCA consistently but not monitoring it day by day, I feel like if I psychologically condition myself to not think about my investment, the temptation to spend them or sell them for a small profit is not going to be present, that way I can just fully focus on investing and nothing more.

I'm tempted to check on my hoard to see the fees but I'm having second thoughts doing so, might make me act up and spend a little, not going to be a good idea as that small spend is going to be a domino effect of small spending until I exhaust that hoard, I'll keep this website in my back pocket just in case.

Compared to other investment methods, DCA is the simplest method and requires the least amount of effort, so doing it yourself is better than relying on automated systems. I think it won't be too time consuming if we already have a specific DCA time level (weekly, monthly,...). In addition, there is another DCA method that I think is also quite effective to consider which is to buy every time Bitcoin price adjusts 10% or more, and will stop buying when Bitcoin breaks the old peak of 69k USD.
DCA in this way may take a little more time watching the market and your patience, but in return your average buying price will be more optimized. Besides, choosing a reasonable time to DCA is also a factor that needs to be considered, for example, from the beginning of 2023 to now is the best time to DCA Bitcoin.

The concept of DCA is best delivered manually. I have known it to be manually bought at every stipulated interval than with automated systems. Let the investor take the pains to DCA rather than use system as the downsides might not be welcomed.

DCA was meant to give advantage to an investor to get in at various levels and still break even into profit averagely in the case where the price of the token keeps nuking.

Wallet costs fee for deposit?

If any wallet charges you a deposit fee, stop using it because it is a crap and greed wallet.

Use open source non custodial wallet, you will not have to pay deposit fee. With good wallets, you will only have to pay on-chain transaction fee when you move your coins on chain and the fee will be paid directly to miners who confirm your transaction.

https://bitcoin.org/en/choose-your-wallet
https://walletscrutiny.com/
https://www.cryptowisser.com/wallets/
https://www.lopp.net/bitcoin-information/recommended-wallets.html

While sites like these are certainly helpful especially for newbies, I would still choose the conventional way at which you execute dollar-cost averaging. Why? Well, apart from the fact that you can't really trust sites like these with your money, another would be that it doesn't instill the same sense of discipline as actual brick and mortar dollar cost averaging, or maybe that's just boomer me. Regardless, if you've found a surefire way to execute your DCA, whether it's assisted or you duked it out yourself, the fact thereof that you're already thinking doing DCA is more than enough reason to actually applaud yourself of what you did. You're already doing more than what half the industry is able to do.

There are 3 (three) different strategies and more that has been mention in this thread if you have read through or at least a little of the pages, this strategies include (Dollar cost averaging, Buying in the dips and lup sum buying) but the most convenient of all is DCA because of its time management factor, consistency that guarantees no chances of missing out the benefits of Bitcoin and last but not the least, the fact that it allows you to take care of other bills at the same time making investment too.
In this different strategies it all depends on the one that suits you more, if you get income on a salary or wages level you can consider DCA or if you hit your income once in a period you can consider lump sum or buying on the dips.
Nobody said dollar cost averaging is the best at all times but the best compared to other strategies.


The way to calculate for using the DCA method is by increasing your investment amount maybe if you usually invest $50 for example on a weekly basis you can increase with $1 or more depending on the transaction fee in order to maintain your set amount of accumulation but if you can't afford to pay for this fees you can use exchanges that offer lesser fees but it only requires you patients. though there are transaction accelerators that can increase the speed of your transaction when you pay less fees but at least in all you still have to DCA no matter the circumstances.

What about when you send the btc to a wallet which also cost fees?  How you use calculate for that?

Even though I don't completely agree with you, for the reasons stated in my earlier post, but I do recognize that you are seeming to try  to work within the parameters of the scenario that was given to you, but I also like to consider where the person is in his/her bitcoin accumulation journey, which is the reason that I would not go to zero prior to reaching some meaningful goals, which might take a newbie 5-10 years or more to reach.. and even longer if they are limiting their DCA budget amounts by so much.


I am assuming long term investments, so I am not thinking about selling.. until perhaps much after the buys have been made.. maybe even 10-20 years later, and surely the more that a portfolio is in profits, then the more liberties that there are to sell.. presuming that the BTC accumulation targets had been reached.

I also find it problematic to sell BTC in order to accumulate more... which I believe I already touched upon as much as would be necessary for this line of discussion.


If someone has been in BTC for less than a whole cycle, then maybe it is too soon to be setting goals (targets) to sell BTC, and there are plenty of people who have been in BTC for closer to a couple of cycles and still have not sold any BTC, even though the position of their BTC portfolio can start to inform them where they are at and whether it is practical, prudent and even necessary to have selling as part of the strategy, which I would think that selling only starts to make sense when the BTC accumulation targets have already been met and/or exceeded.. and yeah, maybe this is getting a bit abstract if we don't attempt to apply it to any specific example.. but I have come to question selling strategies in the period of less than a cycle especially for newbies, and surely if someone comes to bitcoin and they already have $100k invested in various assets, and they decide to invest $20k into bitcoin, that person might be in a different position than someone who is DCAing with relatively small amounts over many years.. which is more the topic (or the kinds of examples for this thread).


Creation and maintenance of a cashflow (or expenses) to cover at least 6 months plus emergencies is a separate question, and more important for newbies as compared with someone who has many different investments in which s/he would be able to draw from if there were emergencies.  Otherwise, yes, DCA in its more pure forum is a somewhat blind and long term investment strategy that continues to buy no matter the price based on budgetary considerations and also maybe until a point of reaching a certain amount of investment into the asset, which could take a whole hell of a lot of time to build an investment portfolio (whether BTC only and/or with other assets) in which it would be justifiable to alter the strategy of strict DCA.

Of course, anyone can learn along the way and to tailor their DCA approach, but I am not going to just assume away that they are learning about an asset merely because they had been DCAing into it, even if the fact that people invest will likely cause them to pay more attention to the asset, but they might not pay enough attention in order to really get to understand it in any kind of way that would justify that they deviate from a more strict DCA approach.


There are some kinds of benefits (something like pensions) that are not individually manageable, so usually the individual cannot be changing those around.  But something like a 401k or some other retirement benefits might have more options, abilities to select assets and even some of them will have varying terms with some of the assets having low to no fees and others having fees (I guess management fees)... and so a person could DCA into a 401k or an account like that, but they usually cannot DCA into a pension because pensions are based on various aspects that involve wages, time in service, time in grade and maybe some other ways to figure out what the benefits might be at the time that a person might be able to draw from them.. .and maybe sometimes they can transfer their pension to another employer or even more easily to transfer a 401k.. Pensions are way less common these days than they were before the 90s, since in the 90s a lot of 401k plans were either supplementing or even in cases completely replacing pensions.. to the extent that any employees get any of these kinds of benefits in some lower income locations..

Absolutely, some exchanges have designed DCA in a way that one could automatically have it buy and sell when the price rises and falls which is the Dual investment I talk about most often