Failed DCA Strategy When Buying Bitcoin - page 6.

decodx

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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.

So, how can we really be sure if it's a regular person or a fund? And how do we know if they actually sold the bitcoin or just moved it to cold storage? As far as I can tell, there are still 2535 BTC just chilling at the address bc1qnujzvts45qka3cr2eqqw8ur3q6g6s0ze2wlk5m, which, in my opinion, seems like a cold wallet. Prior to the main transfer, there were two transactions of +1 BTC and -1 BTC, which appear to be test transactions in my view. That's how I would go about it, at least.

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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.

Well, its their money and its up to them on how they would really be that doing into that and also it wasnt just that wrong because we dont know if he do looks after for the long term prospect and not really just into that point. His portfolio might really be that negative (for now) but that owner of said address does really know on where it would be heading. There's no point on cutting losses and there's no point that he would be spending up tons on something that wouldnt be worth. We are talking about millions of dollars on here on which it would really be just that normal that there's always that certain risks because not
everything it would really be going on what we do expect or plan but in speaking about potential then it does really have.

DCA on bitcoin isnt really that bad because sooner or later, we would really be seeing the fruit on what we have done earlier. We might not able to know on how long it would be but
for sure it would really be something that it is really worth to dive in for.

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Quote from: safar1980 on May 28, 2023, 02:56:32 PM

By the way, a lot of coins were sold on March 5, when bitcoin was worth $22,350. But after the sale, the price of bitcoin fell to 20,000 thousand dollars. The investor could lose even more than 10% of the capital. Bitcoins were most likely not sold on an exchange, but on a closed trading platform for whales.
This was probably not the last money, and if an investor spent 2-10% of his capital to buy bitcoin, then we see that billionaires also have losses.

I cants count this as a lose yet if he decided to hold his Bitcoin for a very long time. Accumulating Bitcoin is one of the best thing to think about when we want a long time investment. Although it might look like he is in loses now but I don't think so because holding for a very long time might be the reason for buying and accumulating. It is very important for us to do some research on Bitcoin timing to know when the market could fall or go up.

I am sure that there are so many accurate speculations outside there that can direct us on when to buy and when to sell so that we can be guided and not to make a mistake of buying before the market falls.

safar1980

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By the way, a lot of coins were sold on March 5, when bitcoin was worth $22,350. But after the sale, the price of bitcoin fell to 20,000 thousand dollars. The investor could lose even more than 10% of the capital. Bitcoins were most likely not sold on an exchange, but on a closed trading platform for whales.
This was probably not the last money, and if an investor spent 2-10% of his capital to buy bitcoin, then we see that billionaires also have losses.

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There will always be a losing trade if you choose a very specific timespan — even with the most bullish asset in existence. But if this dude continues on the DC-averaging in, then chances are, he/she'll be in the positives some time in the future.

blockman

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As long as the owner of that address will still hold the exact amount that he DCA and will wait for the bull run. It's possible that he can retain his losses and win over some of them. But this will require patience. DCA is still the best strategy but this should be a long term game.
If you're investing millions in it and you've become short as you buy BTC then you should be prepared for the risk that you're takin. It isn't easy to do this strategy consistently even if you've got a lot of money because the paper losses might just discourage you.

Pandu Geddon

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he only went wrong when he decided to sell or continue DCA with poor planning. or it could be that there is an urgent need for him to sell the Bitcoin he owns even with the losses he already knows.
we will not know exactly what was planned. but what is clear is that he must have considered the loss when he had to sell the Bitcoin he had previously collected.

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The mistake is that he did not knew that 2022 will never be a good year for bitcoin and all other cryptocurrencies, but if you go back to history, we know that history will juxtapose into the future which was what happened again in 2022 just like 2018 when the price of all coins crashed.

He continued DCA at the wrong time and sold at the wrong time when he supposed to buy more or wait. Supposing he is able to wait again till 2024/2025 he would have gained massively.

In anything we are investing on, we should learn more about it before investing at all.

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Well not everyone focuses on the DCA approach, some are just stolen hand who are. Accumulating Bitcoin for a longer period, if one thinks of all the DCA value then we, May not have memorable Bitcoin spending such as the Bitcoin pizza day.

Originally spending over ten thousand Bitcoin on a pizza is quite insane for someone who has a long-term DCA approach mindset, but to him, he wants to just make that memory, so it is to those who just stock up Bitcoin for the long term without minding to DCA they are among the Bitcoin OGs.

safar1980

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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.

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