What I do is not really considered DCA, because that is dollar cost averaging and if you want to do a better version of it then you should buy when it is going down and not going up. However, I support buying when it is going up as well. Because I believe that it is going to be as good as it gets in the future and even when it goes up today, it will go up a lot more in the future.
This is why I am fine about buying when it is 10k, and fine about buying when it is 100k, both are fine for me and I will do that, there is nothing wrong about that for me. I believe that we shouldn't be worried about it and just keep on buying as much as possible.
Topic: Few questions regarding the DCAing BTC. (Read 101 times)
The simple thing you have to understand about Dollar Cost Average (DCA) is that you want to invest at a best price from time to time. This depends on your self based on your view of the market. Every business idea for profit is to invest when price is low then to sell when the price is high and by that you would have leveraged on some profit. If you DCA at a cheap price which means low price, that means your profit margin will be higher than when you DCA at a higher price or when you buy at a higher price. Don't confuse yourself with the terms but to buy when price is low and accumulate when price is lower
I'm answering some of the points I'm doing with DCA at the moment.
Again, it depends on how the cash flow is managed.
Some questions that I would like to ask here:
1. Does DCAing work when the price of BTC is rising and declining? (bear and bull markets). Now that price of BTC is rising, should I continue to do DCAing?
No, because it depends on the individual, but usually DCA is done regardless of when prices go up/down, I even did from $16k - $28kK and I will continue with it, but it depends on you how you want it.1. Does DCAing work when the price of BTC is rising and declining? (bear and bull markets). Now that price of BTC is rising, should I continue to do DCAing?
2. Should I strictly follow a schedule? Like every month, every week and etc. Is schedule is even important?
I think about my cash flow so I don't set a tight schedule but what I do the most is every week, when the income doesn't match then I decide every month.3. How about the amount of money you put into BTC while DCAing? Should be the same about and it can vary?
I always do with varying the amount entered in BTC and do not set a certain amount at the same time but I always try to increase every money input.Again, it depends on how the cash flow is managed.
4. What are other considerations I should take while doing DCA in the rising market? Please note I am considering BTC only.
If it's been an advantage while doing DCA maybe you can take advantage of it or want to continue to accumulate with more it doesn't matter, but I plan another consideration is to continue to accumulate it.5. Is there times/cases/periods when DCAing is not profitable?
For bitcoin maybe not, but if DCA is on altcoins then it's an unprofitable period.6. When to stop DCAing?
5 years later. maybe
It does not matter if Bitcoin is going sideways or not, what period are we in is all that matters, we are in a bear market, and that's enough for any investor to know that this period is the best time to DCA into Bitcoin, if you are waiting for the bottom you will fail because there is no way anyone can perfectly time the bottom.
From some of the questions you asked, it seems that many have already been answered by members here.
DCA is indeed the best strategy for the long term and it is also what I use to buy Bitcoin consistently.
And related to the question of when to stop from DCA, it is actually very optional. You can stop at any time if you feel that the price is not stable enough and continues to fall, until it crashes. Waiting until the price really falls would be better and can continue the DCA that you are doing.
It is necessary to plan strategies for DCA so that asset accumulation remains good and DCA can continue.
Buying consistently, and buying gradually must continue to be done. Consider every risk that will occur.
Do financial management so that DCA can still be done when the market price really crashes, because it is a good opportunity to continue buying.
DCA is indeed the best strategy for the long term and it is also what I use to buy Bitcoin consistently.
And related to the question of when to stop from DCA, it is actually very optional. You can stop at any time if you feel that the price is not stable enough and continues to fall, until it crashes. Waiting until the price really falls would be better and can continue the DCA that you are doing.
It is necessary to plan strategies for DCA so that asset accumulation remains good and DCA can continue.
Buying consistently, and buying gradually must continue to be done. Consider every risk that will occur.
Do financial management so that DCA can still be done when the market price really crashes, because it is a good opportunity to continue buying.
The main purpose of DCAing is to limit the risk of having huge lost. Let’s say you DCA at price ranges of 16k, 18k, 21k 22.5k, 25k using a fixed amount of 50 dollars, you would have accumulated 0.0125btc, should btc not fall below the 20k mark you will still have the 250$ invested and should it fall below then the risk will be minimal
The only period DCA won’t be profitable is when the price stagnant because at this point it seems you investing at just one price point and there’s no DCA. But as long as there’s price movement then DCA is profitable
2. Should I strictly follow a schedule? Like every month, every week and etc. Is schedule is even important?
Personal I would say it is necessary if you are looking at using bitcoin as an investment tool and not trading. If your income comes weekly or monthly it is easier to set aside fixed amount to bitcoin, weekly or monthly DCA is even better because I see it that at least more significant change would have occurred in the price range rather than daily DCAQuote
5. Is there times/cases/periods when DCAing is not profitable?
The only period DCA won’t be profitable is when the price stagnant because at this point it seems you investing at just one price point and there’s no DCA. But as long as there’s price movement then DCA is profitable
1. Does DCAing work when the price of BTC is rising and declining? (bear and bull markets). Now that price of BTC is rising, should I continue to do DCAing?
DCA is not only for when the market is looking bad, but also for when the market is looking good. DCAing protects against losses that could come from investing a huge amount at once either when the market is not performing well and to control the risk when the market is doing well. It is important for rising and decline.2. Should I strictly follow a schedule? Like every month, every week and etc. Is schedule is even important?
3. How about the amount of money you put into BTC while DCAing? Should be the same about and it can vary?
I believe you can increase it depending on how comfortable you are, the bottom line is do not put an amount you know you will not be financially comfortable DCAing. The money you plan to DCA regularly has to be a comfortable amount. Do not increase it because you suddenly had some extra money, always plan first. On 3 question, what I meant was if I should invest the same amount of money every time when I buy BTC, or the amount is not important as long as I do DCA constantly?
I think it is better to put a fixed amount of money every time while doing DCA. That way you can have better calculation on how much you are losing or making profits. Then again, it's your choice. If you have done your analysis, and it works for you, then you can put more while the price is low and less when the price is high. It's a personal preference.
But when you put random amount of money based on market condition, I don't think it will be called DCA. From what I know, you put certain amount of money after certain amount of time and the routine shouldn't change. That's DCA.
3. How about the amount of money you put into BTC while DCAing? Should be the same about and it can vary?
This should be something that you can afford to lose. Or maybe extra money that you wouldn't mind being held up into an asset.first of all, thanks a lot for your reply. On 3 question, what I meant was if I should invest the same amount of money every time when I buy BTC, or the amount is not important as long as I do DCA constantly? (well I understand that money is limited, and all that, however, for the sake of understanding, given that I have stable income should I put the same amount or not, that is the question)
DCA is an investment strategy where you can divide your whole capital to buy a sample BTC it's either a bear or bull market but to maximize its profitability you need to buy only when the BTC price drop and hold it until the price of BTC makes you profit. About the schedule it's hard to tell when you should start to buy but I suggest do check the market every weekend for price drops only buy when the price is drop.
You can only stop doing DCA when the full amount of capital are exhausted and make sure to hold it until it makes you profit.
You can only stop doing DCA when the full amount of capital are exhausted and make sure to hold it until it makes you profit.
3. How about the amount of money you put into BTC while DCAing? Should be the same about and it can vary?
This should be something that you can afford to lose. Or maybe extra money that you wouldn't mind being held up into an asset.first of all, thanks a lot for your reply. On 3 question, what I meant was if I should invest the same amount of money every time when I buy BTC, or the amount is not important as long as I do DCA constantly? (well I understand that money is limited, and all that, however, for the sake of understanding, given that I have stable income should I put the same amount or not, that is the question)
1. Does DCAing work when the price of BTC is rising and declining? (bear and bull markets). Now that price of BTC is rising, should I continue to do DCAing?
It doesn't matter whether it's rising or declining, as long as you average your entries, it will adjust. If you easily want to break even, it's best to DCA when it's declining. But if you just want to have more, rising or declining wouldn't matter. The best way is to do it consistently.2. Should I strictly follow a schedule? Like every month, every week and etc. Is schedule is even important?
Schedule is important if you want to stick to a routine. It's best to have that schedule. You might forget or not make it a habit. It's best to time it when you are going to receive money to invest in crypto.3. How about the amount of money you put into BTC while DCAing? Should be the same about and it can vary?
This should be something that you can afford to lose. Or maybe extra money that you wouldn't mind being held up into an asset.4. What are other considerations I should take while doing DCA in the rising market? Please note I am considering BTC only.
If you are satisfied already with the profit that you gained. Then you should take profits, if not, continue DCA-ing5. Is there times/cases/periods when DCAing is not profitable?
It's not profitable if you bought from a really high price. It's hard to breakeven. Just stick to a routine and you'll be ok. Make sure it's okay that you are accumulating.6. When to stop DCAing?
When you think you had enough.These are just my thoughts on your questions. It's at your own risk to follow. I love to accumulate BTC so that's why it's good to have a schedule etc.
Some questions that I would like to ask here:
1. Does DCAing work when the price of BTC is rising and declining? (bear and bull markets). Now that price of BTC is rising, should I continue to do DCAing?
2. Should I strictly follow a schedule? Like every month, every week and etc. Is schedule is even important?
3. How about the amount of money you put into BTC while DCAing? Should be the same about and it can vary?
4. What are other considerations I should take while doing DCA in the rising market? Please note I am considering BTC only.
5. Is there times/cases/periods when DCAing is not profitable?
6. When to stop DCAing?
Thanks.
1. Does DCAing work when the price of BTC is rising and declining? (bear and bull markets). Now that price of BTC is rising, should I continue to do DCAing?
2. Should I strictly follow a schedule? Like every month, every week and etc. Is schedule is even important?
3. How about the amount of money you put into BTC while DCAing? Should be the same about and it can vary?
4. What are other considerations I should take while doing DCA in the rising market? Please note I am considering BTC only.
5. Is there times/cases/periods when DCAing is not profitable?
6. When to stop DCAing?
Thanks.
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