Topic: Dollar Cost Averaging with costavg.com include exchange fee - page 2. (Read 530 times)

hype/pump = buy less - sell more
fud/dump=buy more - sell less

buy the fud sell the hype

This site gives a lot of details that may be unnecessary, but is there a Dollar Cost Averaging service that has the ability to calculate Bitcoin price predictions? It will be ideal for anyone who wants to invest in the future by having several forecasting models or choosing and including a model of your choice. In general, I have tried many services and I can say that this site is good and the interface is beautiful, although I see that DCA does not work perfectly with altCOINS.

It turns out, over a certain period, it can still lead to losses for someone who isn't patient enough to wait for the right moment. Take the picture I sent earlier as an example, where DCA can be harmful if someone stops doing it at the timing marked in yellow. In that case, the DCA investor doesn't gain profits from the accumulation they've been doing. This happened over 11 months (May 2022 - Feb 2023) if he starting dca from January 2022.

In conclusion, even when doing DCA, it's essential to have a strong hand to keep making purchases even when prices are down, and our assets are decreasing. Typically, people with weaker hand might immediately sell at a loss when faced with minor FUD . This is a regret for them because, in reality, if continued, it could bring in profits that could improve savings.

I prefer old but gold excel way with orders history export from exchange. Currently dcaing for more than a year, feeling good

Lol! Dollar cost averaging is a very simple calculation. Not sure why you require an application to do it for you. You can simply use an Excel file and couple of formulas to do it.

I hope you haven't integrated your exchange account to this platform. As long as it is a manual platform, it should be ok from security perspective. But never link your exchange account to any other platform.

again
i was going via the scenario of starting in 2021

these days(late 2023). id know the value-premium window(mining low high cost) the market speculates between, is not $10k-$70k window anymore
its more like $20k-$170k potential

so the $150 max weekly investment would look like

$170k  pay $0
$160k  pay $10
$150k  pay $20
$140k  pay $30
$130k  pay $40
$120k  pay $50
$110k  pay $60
$100k  pay $70
$90k    pay $80
$80k    pay $90
$70k    pay $100
$60k    pay $110
$50k    pay $120
$40k    pay $130
$30k    pay $140
$20k    pay $150

remember the main rule of the game
buy low sell high

people need to set a goal for when to sell.. which (in 2021 scenario) would be small amounts above $70k incrementing to sell more sats the higher it goes

i know the IDEA of DCA is for total newbies that know nothing should just throw money at a asset forever without thought or concern endlessly.. but reality of investing.. investors should know atleast something about the market they are getting in to ensure they are not buying high and end up having a real world emergency to sell low

i know the idea of just a standing order set fixed amount per month is like a set monthly pension deposit. but smart investors review their pensions and do change plans mid flow (thats what pension/portfolio managers do)

Ok.  I can see a little better about what you meant, and I like the idea of adjusting the amount based on BTC price; however, I think that the whole formula would need to be rethought, if the person is brand new to bitcoin, and if he is just starting now, then maybe after 3 weeks we end up at $70k, so all of a sudden, he has ONLY invested for three weeks and would not be adequately prepared for UP if his budget was so limited, even though going to zero might have made sense in late 2021 when we were at $70k, but probably ONLY for the person who would be getting close to considering that he has reached enough of a BTC stash.

I believe that I know how I would personally resolve the matter, which would likely be to continue to invest on the way up, even if the BTC price might end up going up to $200k or more.. and so one of the problems if a person has the ability to invest in that kind of a range that goes up to $150 per week under the most dippening of situations, probably something close to the max amount of $150 per week could be applied to anything below the 200-week moving average - even though I can see why there could be a bit of a slopening, even a bit below the 200-week moving average, but I would not see any slopening to be necessary or justified for any prices below $25k, so therefore the DCA would be maxed out if it were to get to $25k for sure... maybe on the way up, there might be a need to max out on the downside around $50 per week starting at around $100k, so the range that I would see would be going between $50 per week and $150 per week between around $25k and $100k-ish...

Similar ideas, but I would still be wanting to continue to buy for anyone who is just getting into BTC and maybe even there could be a need to continue to follow some variations of a formula that involves continuing buying and perhaps even strict minimums such as the $50 per week that I mentioned for when the BTC price is going up and making new ATHs for 5 years or longer to continue to accumulate before letting off.. or maybe supplementing with other accumulation strategies. and surely I don't believe in selling in order to accumulate BTC. .but various buying strategies until some internal and individually tailored goals might be reached.

Even a person who had been investing into bitcoin for 5 years with an average of around $100 per week would have $5,200 invested after a year and would have around $26,200 after 5 years, so that might not be enough to really get the person in a great place as far as how much invested, and maybe would need to reassess the strategy twice in the first year, and then at least on a yearly basis in order to figure out if more or less aggressiveness needs to be incorporated into the BTC accumulation strategy, and it may even end up taking 10-20 years worth of accumulation in which some comforts might be reached that enough BTC has been accumulated, and surely somewhere along the line some diversification might be needed too.. maybe within the first 5 years, but if not within the first 5 years then maybe soon after the first 5 years.

Our opinions are likely going to differ regarding these kinds of priorities, yet bitcoin does continue to seem to be amongst the best of investments, if not the best investment, so there probably is no need to get greedy, but we also have to be careful not to be too whimpy either, and one of the BIGGEST dangers for any newer bitcoiner is to overdo it in one way or another and then end up either getting blown out of his position or alternatively holding too many coins with third parties rather than making sure that they are regularly transferred to self-custody so that no more than 20% are ever held by any 3rd parties (or some other percentage that the person considers to be appropriate risk trade-offs).

i was using OP example when his example started at 50k just after the last ATH

for instance someone starting now would be investing $80 at the ~$38k price today

Those are not bad ideas to the extent that I understand what you are saying, except if someone is brand new to bitcoin, then maybe they are going to be buying every week at the amounts that you mentioned, but we would not have the luxury of waiting for $50k, we would have to start ASAP... and it can take a while to establish a sufficiently decently sized position in order to be prepared for UP.. (that is if the person is a newbie to bitcoin). 

On the other hand, if the person already spent time establishing a position, then what he does into the future may well be influenced, in part, based on what he had accomplished so far in terms of his BTC accumulation amount and what goals that he might have had and if some of his goals might have had changed based on how long he has been in bitcoin and how much bitcoin he has accumulated in light of his other investments and the other factors that he needs to consider, as I have outlined in another one of my posts.

i personally would do a little bit of custom DCA

if was starting to buy in right after a ATH i would look at the ATH and the price i want to begin DCA
EG if ATH was $70k and i want to start at the $50k price point

i would see if i can afford upto $150 if the price is right
 and then calculate a reduction of payment if price goes up and a increase of payment if price goes down
EG
$70k   $0
$66k   $10
$62k   $20
$58k   $30
$54k   $40
$50k   $50 <- start here
$46k   $60
$42k   $70
$38k   $80
$34k   $90
$30k   $100
$26k   $110
$22k   $120
$18k   $130
$14k   $140
$10k   $150

that way you buy more in good times and but less in bad time

I agree with you that DCA is not complicated, and it probably has been around for a long time before it was even called DCA, especially for anyone who might want to ease into or out of a position if they have a lump sum or just as a way for someone who does not have a lump sum to still be able to invest in order to accumulate as if he had a lump sum.. just takes a bit longer than the one who is able to get straight into an investment with a lump sum.

It seems that for several years, another thing that I like to do is to get someone to compare his her BTC performance, whatever that has been, if it has been anything other than DCA.  So in the end it might not matter very much, but if someone has been in BTC for a while.. let's say 6 years or longer, and they are claiming that forum members should trade and blah blah blah other BTC accumulation tactics, and then if we measure his performances to what it would have had been for DCA, then how many times would that guy be able to beat DCA?  And even if he is able to beat DCA, how much had he beaten it by in order to make it worth it for a newbie to follow some technique other than DCA.. especially when first building his/her BTC investment position.

By the way.. maybe going back to @OP.  DCA only works for BTC, and it does not work for those shitcoins, even though the charts might show wonderfully good results for various shitcoins.

DCA and long term investing of 4-10 years or more only works when there has been a fundamental analysis that the coin or project is likely to be trending upwardly and that it is going to end up being worth more in the long run.  So even using the terms investments when it comes to shitcoins seems very problematic, even though people can do whatever they like when it comes to shitcoins, but I would not want to be suggesting that DCA works with any of them.. unless you might be able to conclude that such shitcoin has enough staying power to have generally upwardly trending prices..



DCA is the best strategy for most people because many do not have lump sums, such as $17k, even though they surely might be able to conjure up $1k per month for the next 17 month.

If you have the $17k (or the lump sum) then probably lump sum is going to outperform DCA in a decent variety of circumstances, and especially if the BTC price has bee relatively down rather than being at a top and creating new ATHs on a regular basis.


That is not true about needing to be able to predict BTC prices.  The exact opposite is true, including that DCA can largely be a blind strategy when comes to price, even though if someone has established their DCA budget, they might choose to try to buy on the dips, but hopefully having some restrictions in place that just compel buying after a certain point if the BTC price does not dip within a relatively short period of time that is set aside to try to find a dip...

One aspect of DCA is that you do not need to know anything about bitcoin or the price dynamics.  You buy BTC regularly based on your own budget wether that is weekly, bi-weekly, monthly or some other regular increments. 

And if you have a cashflow that varies between $800 and $2k per month, but you have around $1k of expenses every month, then you have to figure out how much you have available each week or month in order to figure out how much you want to invest - and presumably you have extra cash on hand to account for cashflow variations and also an emergency fund.. 3-6 months of a expenses is generally around the minimum amount that people would have when they are investing so that they do not have to dip into their investment at any time that is other than completely their own choosing.

Dollar-cost average is a good plan for investors who have certain emotional issues like anger, fear, and nervousness. It helps them a lot by providing an emotionally free plan. DCA is sometimes good and sometimes bad those who are saying that DCA is always good then I think this is wrong. It gives good profits and affordable sharing with times. DCA is not best at both in the marketing phase i.e. bullish or bearish. If you are doing DCA in the bearish market it gives you more opportunities to buy more shares because in a bearish the price is low and with time it goes down. When you have a daily fixed amount for the investment you can buy more shares if it is bearish and when the price is high it will give you a high return on the other hand when the market is in the bullish run you can not buy more shares with the same fund and you will invest for a long period because the price is high in the bullish phase. One thing more that this strategy is for those who have a long-term investment plan if you have a short-term plan then go towards swing trading, scalping, or day trading.

If you look at the market and the chart too often, you will be more emotional and will feel harder to make decisions. Emotions will affect your decisions more seriously if you spend more time to look at market and price chart.

Dollar Cost Averaging is very fitted with people who have regular income source that can be used as input for their capital in DCA. This buying, investing strategy helps to minimize time spent to look at market and price chart. It also is helpful to minimize effects from emotion on your decisions for each investment (buying) time.

Another website for DCA https://dcabtc.com/

DCA is helpful for taking profit too, not only helpful for buying.
(SSS) - A Sane and Simple bitcoin Savings plan.

It is true that the ability to monitor the market is not optimal when we do this and DCA cuts it, but given the conditions, for example if the market conditions are bullish, I think that could have bad consequences because prices are soaring if you buy and the dominant basic principle used by the public is always to want relevant prices. I mean buying cheap has shifted. Ultimately I think it depends on individual circumstances.

Thanks for sharing, I bet this will be useful for those who aren't aware that such website existed, but honestly I don't need it because DCA is very easy to do without needing any form of calculator or even records, just have it in mind that every week or month you have to buy some Bitcoin with some percentage of your income or at the end of your paychecks.

Withdrawal fees ain't even something to talk about, because it's not that much to feel concern about, I remember a brother asking for Binance withdrawal fee when he want to start DCA, I told him to gather up the cash for two weeks straight before buying on exchange, I realize that the amount he plan to use weekly is too small and that's why the withdrawal fee is important to him.

DCA is good for investment because it limits your stress of investing a lot of money at once, since only money that you won't be needing for long is what should be invested into Bitcoin, I don't even have a certain amount, because my income varies, I can earn 300 in a month or even 500 at times, it depends on the rate of sales from my business. So I can DCA with 200 this month and DCA with 100 the next month, do what is easier for you when accumulating Bitcoin and always remember that it's not a do or die.

Which exchanges do that? I assume they need your credit card data, otherwise, it doesn't make sense to store some alts to buy more BTC. Personally, I'd never use it and stick with manual trading since bots can be faulty and unreliable too.

At the end of the day, both of them have their pros and cons. If you can be patient and get lucky, you'll end up with more profits compared to DCA. The problem is most people don't have those (catching a falling knife is almost impossible most of the time), so DCA is preferable to them. I guess you can compare how your strategy works with the tools OP and others shared and your current results.

By this, you have to store your money on exchanges, you always need available fund on exchanges for automatic DCA with exchange tool. It's not good idea because it is risky.

Reminder: do not keep your money in online accounts

DCA is helpful to eliminate, and if not at least reduce, your headache for your investment. You only need to have fund for regularly buying and you don't have find bottoms, wait for dips, what time is good for buying with dips or without dips.

So this is more like a DCA calculator. Pretty good for determining on how the asset has performed in the past if someone decided to buy it using the Dollar Cost Average strategy. The good thing is that there are bots that can help one do DCA. Better still, more exchanges have now implemented the DCA internal feature. This can ensure that there is consistency.

I personally prefer accumulating funds and then going through the headache of buying the dip which isn't always accurated 

Though "Dollar Cost Average method might be a very good way to accumulate more coins over a long period of time, but the only problem about it is your ability to predict when the price value will of your asset to "Fall" so as to sell high and buy back low when the price value have fallen, while doing that consistently, of which it only takes for anybody to be successful as a DCA investor, he/she needs to have good knowledge of about how the price movement of bitcoin works. Hence, making "hodling" the best and primarily way to invest in Bitcoin, for those who have little or no knowledge about how Bitcoin works.

You don't have to do DCA by yourself to understand how it works. Tools like the one shared by OP can help you to understand more about DCA.

https://dcabtc.com/
https://www.bitcoindollarcostaverage.com/
https://www.cryptodca.org/

You can create an account on Coinmarketcap or Coingecko and have a Demo DCA with your account. No money loss by entering an amount for Demo DCA weekly or monthly.

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