Failed DCA Strategy When Buying Bitcoin

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Quote from: Awaklara on July 05, 2024, 06:52:18 AM

Quote from: Catenaccio on July 05, 2024, 03:01:41 AM

If you DCA in Bitcoin, it's good and profitable in long term but if you DCA in meme coins, risk to lose all your money is very high.

that's right, meme coins will not be a good investment by any strategy. DCA is intended for those who have long-term investment plans. The effort is to continue to accumulate the number of assets so that they increase sustainably. Of course, the most important thing in this case is to choose assets that are good for the long term, not assets that rise briefly and fall quickly.
the investor's role in trusting the chosen asset is also important. Never have doubts when choosing an asset. although the situation sometimes increases or decreases. The barrier for investors who use DCA is their patience.

No need of thinking twice as only bitcoin have the potential to survive in the market for a very long time and the price is likely to keep on increasing due to the halving event. Bitcoin investment is not something that you jump into with any funds that you have without proper planning on how to hodli for long.

DCA is good and very effective in bitcoin accumulation when it is done with the right amount that will not affect your financial expenses. Some people don't understand bitcoin and they might invest with the money that they will need in a short-term and if the time when they need the money is in the corner, the have no choice than to sell their bitcoin irrespective of the price of bitcoin at that moment. DCA on shitcoin is a waste of time and resources because you are being serious with gambling.

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Quote from: Catenaccio on July 05, 2024, 03:01:41 AM

If you DCA in Bitcoin, it's good and profitable in long term but if you DCA in meme coins, risk to lose all your money is very high.

that's right, meme coins will not be a good investment by any strategy. DCA is intended for those who have long-term investment plans. The effort is to continue to accumulate the number of assets so that they increase sustainably. Of course, the most important thing in this case is to choose assets that are good for the long term, not assets that rise briefly and fall quickly.
the investor's role in trusting the chosen asset is also important. Never have doubts when choosing an asset. although the situation sometimes increases or decreases. The barrier for investors who use DCA is their patience.

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He failed because selling it without selling the asset only fell in USD value but the amount of Bitcoin was still the same, he just didn't know how to be more patient in withholding it, he probably wouldn't have experienced that big of a loss and maybe even profit if he kept it longer, but we don't know his reason for selling So we can only say he lost or did the wrong strategy.

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Quote from: jaberwock on July 05, 2024, 12:38:31 AM

DCA or not, investing only what you can afford to lose is already a general rule in investing and DCA allows people to invest in a more flexible manner. If they invest too much, then they are doing it wrong. DCA and other strategies that are used in investing, involves buying and yeah that it is also or still called as investing.

It's true to say that one of basic rules for investment is afford to lose money in our investment but it doesn't mean that we want to lose money. Safety and protection of capital must be a most important thing to do with investors.

DCA is only one of investment strategies but itself does not protect your capital. It only helps you to do regular purchases for your investment to avoid emotional decisions but is your investment safe or risky, bring profit or loss, it depends on what you invest in.

If you DCA in Bitcoin, it's good and profitable in long term but if you DCA in meme coins, risk to lose all your money is very high.

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Quote from: batang_bitcoin on July 03, 2024, 05:50:35 PM

Quote from: Ruttoshi on July 03, 2024, 12:05:35 PM

DCA doesn't fail if it is done properly without accumulating over aggressively with it. When you are accumulating aggressively, you should not overdo it if not it will affect you negatively. I believe that was the problem he had.

Everything that's overdone will result into something bad and that's why when we DCA, always make sure that you'd do it with the money that you can afford to lose. It's no different from investing actually as we always tip those words for anyone who wants to do it. But that guy who has spent hundreds of millions for his purchase of BTC has got a lot of money and more than that. Anyway, this is what means to be a literal expensive lesson to have.

DCA or not, investing only what you can afford to lose is already a general rule in investing and DCA allows people to invest in a more flexible manner. If they invest too much, then they are doing it wrong. DCA and other strategies that are used in investing, involves buying and yeah that it is also or still called as investing.

Obviously that guy has lots of money because how can he buy a crazy high amount like that anyway? Though, not all who does that are investing only what they can afford to lose and this is where regret comes out. Each of us has our own capacity, so even a lower amount can still be called as an expensive lesson for us, if in case we fail.

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Quote from: Taskford on July 04, 2024, 08:33:49 AM

It should be like that since if you use the money you can't afford to lose then maybe you will start to have a problem and will just get stress on the situation that you didn't expect to happen. So its important to invest an extra funds here which separate intended for investment and make sure also that you have good source of income so that there will be bad scare towards losing your money and you can set aside any unnecessary emotion since the money you used is intended for investment matters.

But if DCA method then backed up with good understanding and strengthen up our emotion then for sure that doing this DCA strategy will never fail us. Because our decision making usually put us in danger towards this matter.

When someone uses funds to invest and is unable to bear the losses when they have invested, it would be better to postpone their investment first because they are not ready to invest in the hope that they will be able to get a profit from what they have invested and if you use additional funds To carry out investments that don't require anything else, of course we don't need to be afraid of investing as long as we understand it well and know the right time to invest.

Some people think that investing in Bitcoin is very easy using the DCA method, but I think this will be very difficult to do well when we don't have a fixed income and the income we have is not yet stable, of course this will disrupt the schedule we have set. and this will certainly affect the results we will get from this investment.

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Quote from: Ruttoshi on July 03, 2024, 12:05:35 PM

The DCA strategy failed because he does not have an emergency funds that will be able to take care of any real emergency that occurs while he is DCAing. You cannot use all the money on you to DCA without preparing for the unforeseen circumstances ahead of us. For a long term bitcoin investment, every proper plan should be put in place to avoid selling your bitcoin at loss when it is not yet the right time.

DCA doesn't fail if it is done properly without accumulating over aggressively with it. When you are accumulating aggressively, you should not overdo it if not it will affect you negatively. I believe that was the problem he had.

When they say to investors and potential newbies to crypto to use the funds they can afford to lose, they think that statement is a mere one and nothing to be serious about but it's more than anything, some of this problems is the reason why emphasis is laid on it but someone who barely have another alternative for money will used his life saving to invest into Bitcoin and other altcoins and when the investment takes a noise dive into another route, they complain.

Literally there is no funds we can afford to lose, people that has invested millions of dollars and billions into Bitcoin doesn't look stupid to think they can let's go of that amount into investment if something happen but it's because they have another alternative for source of money for anything that comes later and they will wait for as long as it will take to recover back the money they have invested and also the profits when it's significant enough for them.

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Quote from: batang_bitcoin on July 03, 2024, 05:50:35 PM

Quote from: Ruttoshi on July 03, 2024, 12:05:35 PM

DCA doesn't fail if it is done properly without accumulating over aggressively with it. When you are accumulating aggressively, you should not overdo it if not it will affect you negatively. I believe that was the problem he had.

Everything that's overdone will result into something bad and that's why when we DCA, always make sure that you'd do it with the money that you can afford to lose. It's no different from investing actually as we always tip those words for anyone who wants to do it. But that guy who has spent hundreds of millions for his purchase of BTC has got a lot of money and more than that. Anyway, this is what means to be a literal expensive lesson to have.

It should be like that since if you use the money you can't afford to lose then maybe you will start to have a problem and will just get stress on the situation that you didn't expect to happen. So its important to invest an extra funds here which separate intended for investment and make sure also that you have good source of income so that there will be bad scare towards losing your money and you can set aside any unnecessary emotion since the money you used is intended for investment matters.

But if DCA method then backed up with good understanding and strengthen up our emotion then for sure that doing this DCA strategy will never fail us. Because our decision making usually put us in danger towards this matter.

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Quote from: Ruttoshi on July 03, 2024, 12:05:35 PM

Quote from: Uruhara on July 02, 2024, 05:52:42 AM

Although this is an old thread. But this can be a lesson for anyone who invests in Bitcoin, it must be done after we are truly sure and confident about holding it for the long term. because if you are not ready then stories like this can happen again and again. But maybe there are several reasons that can also force someone to start changing plans from initially being for the long term to having to stop it and having to sell even at a loss. Like when there is an emergency situation that requires someone to immediately convert all their assets into fiat. So we also don't know what the story is behind the owner of the address above.

But for those of us who want to invest in bitcoin, only use money that is really cold and ready to lose. And so far DCA has been very successful for me. Because this is not for the short term but the long term. Currently I am in a condition of getting multiple profits but yes I still remember my long term plans. So I will keep holding it until I actually reach the target.

The DCA strategy failed because he does not have an emergency funds that will be able to take care of any real emergency that occurs while he is DCAing. You cannot use all the money on you to DCA without preparing for the unforeseen circumstances ahead of us. For a long term bitcoin investment, every proper plan should be put in place to avoid selling your bitcoin at loss when it is not yet the right time.

DCA doesn't fail if it is done properly without accumulating over aggressively with it. When you are accumulating aggressively, you should not overdo it if not it will affect you negatively. I believe that was the problem he had.

Yes, that's right, sir. And people doing DCA in bitcoin should also understand that this is a high-risk asset. So we have to collect special funds to invest in these types of high-risk assets. Of course, like not being too ambitious by including too much of our finances in this matter. We can put in little by little where our finances will not be disturbed by the investment. Usually those who are too aggressive in investing and accumulating either using the DCA method or other methods are those who are in a hurry and feel that they are afraid of being left behind by others in gaining profits. They invest without taking into account the long-term fluctuations they will face. So when they see the reality of market movements that are different from their wishes, they will panic and will start selling everything even at a loss. Or it could also be because they are not good at managing finances, especially in preparing emergency funds. In essence, we have to really understand every investment instrument we enter. And keep everything within limits where we can bear the risk.

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Quote from: Lakai01 on July 03, 2024, 01:23:53 PM

Quote from: Ruttoshi on July 03, 2024, 12:05:35 PM

[...]
DCA doesn't fail if it is done properly without accumulating over aggressively with it. When you are accumulating aggressively, you should not overdo it if not it will affect you negatively. I believe that was the problem he had.

That is the most important part of a DCA strategy, yes. You often read in the forum that people are unhappy with the results of their DCA purchases. If you then ask in more detail, it often turns out that, for example, purchases were made every day for several weeks. Even with strong swings during this period, you can't expect the strategy to pay off. DCA is primarily aimed at buying coins over a very long period of time in order to capture as many market sentiments as possible. If you rush your purchases, you might as well use a classic trading strategy and not rely on DCA.

When I saw the caption of this thread, I wondered if it is the same DCA that have helped me in my bitcoin accumulation that is being addressed or something else. The author of this post seems to be mistaken the DCA strategy, which is mainly for buy bitcoin, with something else. You can buy the bitcoin with the DCA method but if you do not device a proper way of managing the bitcoin, you might still sell at a loss which is what the investor did. What I noticed in the event that the OP described is someone who invested in Bitcoin through due to hype of the 2021 bull run with the intention that he will make a killing. He waited and continue adding more hoping that it will pump but the bear season that followed the bull run lingered and he was tired of waiting and decided to sell at loss. Assuming he waited one more year, the loss would have been his profit. This is the reason anyone investing in bitcoin must be ready to give it anything between 4-10 years. In summary, this is not a case of failed DCA strategy but someone who bought through the DCA strategy but sold at a loss.

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Quote from: Ruttoshi on July 03, 2024, 12:05:35 PM

DCA doesn't fail if it is done properly without accumulating over aggressively with it. When you are accumulating aggressively, you should not overdo it if not it will affect you negatively. I believe that was the problem he had.

Everything that's overdone will result into something bad and that's why when we DCA, always make sure that you'd do it with the money that you can afford to lose. It's no different from investing actually as we always tip those words for anyone who wants to do it. But that guy who has spent hundreds of millions for his purchase of BTC has got a lot of money and more than that. Anyway, this is what means to be a literal expensive lesson to have.

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Quote from: Fara Chan on July 02, 2024, 07:33:27 AM

Quote from: Abu-Naim on July 01, 2024, 04:41:49 PM

The DCA did not fail the investor, the investor failed to be patient which is the main reason why you think that the method of investment which is DCA failed him.
Investing through DCA means you as an investor wanted to hold your Bitcoin for a very long period of time, but if you intend to sell at any point, you failed your investment because you will or might sell at loss which is the exact scenario the OP explained.

DCA is a part of the strategy that is not difficult to use, but that does not mean that everyone will use it as long as there are other strategies that can be quite convenient when it comes to buying Bitcoin. Because in general the purpose of buying Bitcoin is to get more profits by holding it for a certain duration, so DCA is also not the only strategy that should be used as long as someone is not comfortable enough to use it. Although if we look at the disappointment that some investors have experienced due to a lack of patience, of course this is not influenced by strategy, but rather influenced by their own thoughts which cannot be patient when holding something like Bitcoin.

What I understand from your statement is that every strategy used is good, including DCA, if we implement it correctly. because in every investment strategy the most important thing is patience, especially if we have a goal or target, if the target has not been achieved we should not sell it yet. In fact, bitcoin doesn't make you lose as long as you never sell the bitcoin or in other words keep holding it.

It's just that sometimes there are obstacles that make us have to sell more quickly, so that in every important investment we have reserve funds, even though we need funds quickly, we don't need to sell our assets that are going down so that losses can be avoided. I always use the dca strategy and so far it has been very profitable even though the price of bitcoin is falling like now my portfolio has not experienced any losses.

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Quote from: Ruttoshi on July 03, 2024, 12:05:35 PM

[...]
DCA doesn't fail if it is done properly without accumulating over aggressively with it. When you are accumulating aggressively, you should not overdo it if not it will affect you negatively. I believe that was the problem he had.

That is the most important part of a DCA strategy, yes. You often read in the forum that people are unhappy with the results of their DCA purchases. If you then ask in more detail, it often turns out that, for example, purchases were made every day for several weeks. Even with strong swings during this period, you can't expect the strategy to pay off. DCA is primarily aimed at buying coins over a very long period of time in order to capture as many market sentiments as possible. If you rush your purchases, you might as well use a classic trading strategy and not rely on DCA.

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Quote from: Uruhara on July 02, 2024, 05:52:42 AM

Quote from: safar1980 on May 28, 2023, 01:20:55 PM

The owner of this address bought a million dollars worth of Bitcoin every day from August 11, 2021 to January 1, 2023.

https://bitinfocharts.com/bitcoin/address/bc1qw0pswznckx7s6tjmd2f5hrx4q6kc5nyrdxku50
Received:   17,536.2628 BTC (517 ins)   first: 2021-07-25   last: 2022-12-28
Sent:   17,536.2628 BTC (517 outs)   first: 2023-01-01   last: 2023-03-05
Profit from price change:   -239,395,601.9 USD

Approximately $460 million was spent buying Bitcoin, resulting in a loss of over $239 million. Perhaps this investor did not know that the DCA strategy is better to use for a longer period, or perhaps he found a more profitable investment.

Although this is an old thread. But this can be a lesson for anyone who invests in Bitcoin, it must be done after we are truly sure and confident about holding it for the long term. because if you are not ready then stories like this can happen again and again. But maybe there are several reasons that can also force someone to start changing plans from initially being for the long term to having to stop it and having to sell even at a loss. Like when there is an emergency situation that requires someone to immediately convert all their assets into fiat. So we also don't know what the story is behind the owner of the address above.

But for those of us who want to invest in bitcoin, only use money that is really cold and ready to lose. And so far DCA has been very successful for me. Because this is not for the short term but the long term. Currently I am in a condition of getting multiple profits but yes I still remember my long term plans. So I will keep holding it until I actually reach the target.

The DCA strategy failed because he does not have an emergency funds that will be able to take care of any real emergency that occurs while he is DCAing. You cannot use all the money on you to DCA without preparing for the unforeseen circumstances ahead of us. For a long term bitcoin investment, every proper plan should be put in place to avoid selling your bitcoin at loss when it is not yet the right time.

DCA doesn't fail if it is done properly without accumulating over aggressively with it. When you are accumulating aggressively, you should not overdo it if not it will affect you negatively. I believe that was the problem he had.

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Quote from: safar1980 on May 28, 2023, 01:20:55 PM

Approximately $460 million was spent buying Bitcoin, resulting in a loss of over $239 million. Perhaps this investor did not know that the DCA strategy is better to use for a longer period, or perhaps he found a more profitable investment.

Investing $1 million daily and I bet he has 460 million dollars from day one, as I don't think he is one of those guys who are making 1 million daily as income from some kind of business and investing this $ 1 million daily in BTC as well. If he had $460 million from day one he should do a lump sum because the time he bought BTC was high but after that, BTC came as low as $18k. His average buying should be around $28k.

but as I can see he exited the market very soon, I wonder why would he not waited for the halving as AFAIK every 3rd or 5th person in the crypto knows that after every halving BTC make new ATH, but only this time it was exception it made ATH before halving I still think it will make new ATH after the halving as well. Maybe he needed the money for some other reasons.

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Quote from: mirakal on July 03, 2024, 02:38:24 AM

Quote from: slaman29 on July 01, 2024, 02:33:25 AM

I can't believe some of the nonsense I read on this forum sometimes. Makes me want to murder most of you.

Failed DCA strategy? DCA doesn't fail. If it fails, it's not DCA.

How can you get something so simple like DCA wrong? Buy, all the time, any time, don't even look at price. That's impossible to fail.

It is the person who is quite obvious that there is a problem, not the strategy itself.
Some traders say they are doing copy trading from known platforms or successful traders but they still question why they lose. It is certain that it all depends on the trader who does the difficult task and we can't ensure that we all have the same emotions and decision-making which could lead to different results.

Those who claim that DCA is not effective are those people who never know what is the right approach. If they jump into this without knowledge, there is no way to expect good results but certainly, it gonna be losses and frustration.

If this works for some people, this also possibly doesn't work on others.

Its proven that the strategy is really working the problem is the person who execute it if they fully understand how to do this method. Also on how he deals with the situation since if the investor is the type of person which easily get affected with negative news then sell all they have because of fear for losing a lot of money then we can really see the real problem with that situations.

Also if they know that they are the one who cause the problem they should not blame the DCA strategy is not working. Maybe its best for them to research more and plant more knowledge into their heads so that they can execute well this strategy then possibly change their approach towards their investment.

Investors need to remember that DCA strategy will not help them to earn fast money or those what they say easy rich quick scheme these method is helpful for their accumulation and if they do this so well then everything will work according to what they like to happen especially for their long term goals.

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Quote from: safar1980 on May 28, 2023, 01:20:55 PM

The owner of this address bought a million dollars worth of Bitcoin every day from August 11, 2021 to January 1, 2023.

https://bitinfocharts.com/bitcoin/address/bc1qw0pswznckx7s6tjmd2f5hrx4q6kc5nyrdxku50
Received:   17,536.2628 BTC (517 ins)   first: 2021-07-25   last: 2022-12-28
Sent:   17,536.2628 BTC (517 outs)   first: 2023-01-01   last: 2023-03-05
Profit from price change:   -239,395,601.9 USD

Approximately $460 million was spent buying Bitcoin, resulting in a loss of over $239 million. Perhaps this investor did not know that the DCA strategy is better to use for a longer period, or perhaps he found a more profitable investment.

I think the DCAing is a personal investors might who is fearful or mindful not to buy sporadically at most higher rates.
Looking at that Investors purchasing chart, he seems rich enough not to panic with whatever cost of value the bitcoin price maybe.
He might basically layed on storing his values in there not prioritizing investing even though he knows the vessel is potential to produce profits.
You you ask him, then he'll say DCAs is for poor Investors. Haha 😂

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Quote from: slaman29 on July 01, 2024, 02:33:25 AM

I can't believe some of the nonsense I read on this forum sometimes. Makes me want to murder most of you.

Failed DCA strategy? DCA doesn't fail. If it fails, it's not DCA.

How can you get something so simple like DCA wrong? Buy, all the time, any time, don't even look at price. That's impossible to fail.

It is the person who is quite obvious that there is a problem, not the strategy itself.
Some traders say they are doing copy trading from known platforms or successful traders but they still question why they lose. It is certain that it all depends on the trader who does the difficult task and we can't ensure that we all have the same emotions and decision-making which could lead to different results.

Those who claim that DCA is not effective are those people who never know what is the right approach. If they jump into this without knowledge, there is no way to expect good results but certainly, it gonna be losses and frustration.

If this works for some people, this also possibly doesn't work on others.

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Quote from: Abu-Naim on July 01, 2024, 04:41:49 PM

The DCA did not fail the investor, the investor failed to be patient which is the main reason why you think that the method of investment which is DCA failed him.
Investing through DCA means you as an investor wanted to hold your Bitcoin for a very long period of time, but if you intend to sell at any point, you failed your investment because you will or might sell at loss which is the exact scenario the OP explained.

As an investor, of course this is not the main reason why DCA is disappointing. It cannot be said that DCA failed in this case. Of course, this technique is often used by investors to get the best average price for our assets. It could be that most likely in this life we will never know what will come, for example a disaster or something else, this sometimes makes our investment inevitable so that we can sell it at a profit or loss. If we no longer have any money, we save it or it runs out. In this case, it is our investment that fails, not the DCA.

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Quote from: Abu-Naim on July 01, 2024, 04:41:49 PM

The DCA did not fail the investor, the investor failed to be patient which is the main reason why you think that the method of investment which is DCA failed him.
Investing through DCA means you as an investor wanted to hold your Bitcoin for a very long period of time, but if you intend to sell at any point, you failed your investment because you will or might sell at loss which is the exact scenario the OP explained.

DCA is a part of the strategy that is not difficult to use, but that does not mean that everyone will use it as long as there are other strategies that can be quite convenient when it comes to buying Bitcoin. Because in general the purpose of buying Bitcoin is to get more profits by holding it for a certain duration, so DCA is also not the only strategy that should be used as long as someone is not comfortable enough to use it. Although if we look at the disappointment that some investors have experienced due to a lack of patience, of course this is not influenced by strategy, but rather influenced by their own thoughts which cannot be patient when holding something like Bitcoin.

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