Topic: High transaction fees affects those who DCA (Read 1715 times)
I would like to say that stop making or adopting DCA method while by Bitcoin wallet transfer. It is true that centralised exchanger was not an ideal way to adopting Bitcoin for long term investing but I think if we choose a reputable centralised exchanger and buying there Bitcoin as we want to run our dca method like we can buy bitcoin by p2p trading and holding bitcoin on centralise at changer until the Bitcoin transaction has down to cool.
Bitcoin transactions typically spike around the halving, and Bitcoin fees continue to be the biggest barrier to transactions. Basically I think it's best to look at Mempool when trading. Because from this you can guess about the gas fee in case of coin transaction, and according to Mempool you will definitely get some saving if you do Bitcoin transaction. Weekly if you are holding in DCA method here you can complete this transaction monthly or every 15 days. But it is also in good practice to complete it by keeping you money.
Exactly. It's best to make transactions at different time periods to save money. Keeping a few BTC on exchanges seems to be the only option right now. You can do DCA on a centralized exchange without the need to pay high network fees (except when you make a withdrawal). I've read that some exchanges are integrating LN support (Bitstamp, Coinbase), so high fees would only be a thing of the past.
Remember, patience is a virtue. Those who manage to wait, will eventually be rewarded in the long run. Bitcoin network fees won't stay high forever, anyways. I'm hoping the Ordinals hype comes to an end, so Bitcoin can be used more throughly as a currency than a store of value. At least, that's the dream.
The current Bitcoin fees wouldn't have mattered to me because I am not selling, but the fees do matter because I DCA, and I don't want to leave my coins in the centralized exchange. This month, I have spent roughly $5 to $10 in transaction fees when I DCA every week. It may seem small, but in my country, it's enough to cover my feeding expenses for a month cumulatively.
I discussed this issue with my friend, and he suggested I use an exchange that utilizes the Lightning Network. According to him, this would help me get off with no fees any day. While I'm considering this alternative, another option is to wait for a month or two, then use the amount we kept for weekly DCA, hold it for a month or two, and lump sum. This way, i would incur just a one time fee. What are your thoughts on this? I feel like I may use the money kept for DCA for other expenses.
I discussed this issue with my friend, and he suggested I use an exchange that utilizes the Lightning Network. According to him, this would help me get off with no fees any day. While I'm considering this alternative, another option is to wait for a month or two, then use the amount we kept for weekly DCA, hold it for a month or two, and lump sum. This way, i would incur just a one time fee. What are your thoughts on this? I feel like I may use the money kept for DCA for other expenses.
Bitcoin transactions typically spike around the halving, and Bitcoin fees continue to be the biggest barrier to transactions. Basically I think it's best to look at Mempool when trading. Because from this you can guess about the gas fee in case of coin transaction, and according to Mempool you will definitely get some saving if you do Bitcoin transaction. Weekly if you are holding in DCA method here you can complete this transaction monthly or every 15 days. But it is also in good practice to complete it by keeping you money.
As long as bitcoin exists, there will always be a situation like this and also note that this is not going to stop anytime soon, and bitcoin have to be aimed at a long term views this way you can easily avoid draining your entire money on fees.
But then we have to wait to see things settled along the way, and also be prepared to any future challenges that may come up I the future.
usually it costs relatively cheap to DCA, bitcoin fee isn't as high as ethereum in the past, but due to the presence of BRC20 and runes, it does increase.But then we have to wait to see things settled along the way, and also be prepared to any future challenges that may come up I the future.
my only solution is only to take advantage of DCA through exchange, even though many people consider exchange to be rather risky when saving money since we got that flashback of FTX making people unable to withdraw but DCA ing could only be done effectively through that since the high transaction fee aren't going anywhere.
but honestly we can wait it out until the hypes about runes subsides first, so many runes minting these days, it does increase fee as high as $100 which honestly is ridiculous.
We're still facing the high transaction fees again, and it seems like it's something that we have to get used to that it must happen periodically when the mempool is congested, so every Bitcoin holder should have a plan b when it occurs. In your own case as you're doing DCA method, I think that it's best if you can be disciplined and hold your weekly earnings for a period of one month before sending it, to minimize the amount of the fees, since you'll pay about the same fees if you're sending it weekly. It's not advisable to leave your coins in the exchange and relax.
This is very normal if there is a traffic jam, if we get weekly income from the campaign, if we don't have an urgent need, I don't think there's any point in selling it, if we have income in the real world. If urgent needs cannot be avoided, you can seek a temporary solution from your friends or relatives by borrowing money. When conditions return to normal, you can sell it. If we accumulate it every month, in my opinion, with fairly high transaction conditions, there's no harm in temporarily storing it on the stock exchange, when conditions are stable you can withdraw it back to your wallet.And fees are somewhat back in "normal", when I say normal, it's not 100 sat/vB++. So I do agree, I see some members, who requested their managers to hold off the payment because of the high transaction fees.
As for DCA, if you are here for the long run, then I'm not sure how it will affect the high fees. Maybe you can stop DCAing or buying when the fees are high and just save your fiat money. But if everything goes back and settled in, they resume your accumulation. Just treat it as something that we should do, just taking a break because of the high fees.
this time specially its the right opportunity on doing so.
Storing bitcoins on exchanges has never been advisable, but I also think it is a temporary solution for the time being with high fees. Distributing bitcoin across multiple exchanges is also not a bad idea, this will also have risks but the risks will be dispersed if the exchange collapses or is hacked. I will consider this idea if transaction fees do not decrease.
It's all "part of the plan". With high network fees, people will be forced to leave their coins on exchanges or centralized services. If this keeps up, only the wealthy (whales, institutional investment companies, governments, etc) will be able to practice self-custody of BTC. Fees may've declined now, but it won't last forever. Especially if the Ordinals craze continues. Core devs are reluctant to introduce network changes that would help mitigate the issue. They want us to switch to the centralized Lightning Network that's flawed by design.
I wonder how high network fees will be by the next block reward halving? Probably within the "four figures"? At least, we have plenty of other decentralized alternatives to choose from. Litecoin is one of them. At this point, we could say Bitcoin failed as a digital currency. It's only good as a store of value. You can rely on BTC as a Gold alternative, while using LTC for day-to-day payments (like Fiat). The future can't be predicted, so lets hope for the best.
We're still facing the high transaction fees again, and it seems like it's something that we have to get used to that it must happen periodically when the mempool is congested, so every Bitcoin holder should have a plan b when it occurs. In your own case as you're doing DCA method, I think that it's best if you can be disciplined and hold your weekly earnings for a period of one month before sending it, to minimize the amount of the fees, since you'll pay about the same fees if you're sending it weekly. It's not advisable to leave your coins in the exchange and relax.
This is very normal if there is a traffic jam, if we get weekly income from the campaign, if we don't have an urgent need, I don't think there's any point in selling it, if we have income in the real world. If urgent needs cannot be avoided, you can seek a temporary solution from your friends or relatives by borrowing money. When conditions return to normal, you can sell it. If we accumulate it every month, in my opinion, with fairly high transaction conditions, there's no harm in temporarily storing it on the stock exchange, when conditions are stable you can withdraw it back to your wallet.And fees are somewhat back in "normal", when I say normal, it's not 100 sat/vB++. So I do agree, I see some members, who requested their managers to hold off the payment because of the high transaction fees.
As for DCA, if you are here for the long run, then I'm not sure how it will affect the high fees. Maybe you can stop DCAing or buying when the fees are high and just save your fiat money. But if everything goes back and settled in, they resume your accumulation. Just treat it as something that we should do, just taking a break because of the high fees.
-snip-
This is very normal if there is a traffic jam, if we get weekly income from the campaign, if we don't have an urgent need, I don't think there's any point in selling it, if we have income in the real world. If urgent needs cannot be avoided, you can seek a temporary solution from your friends or relatives by borrowing money. When conditions return to normal, you can sell it. If we accumulate it every month, in my opinion, with fairly high transaction conditions, there's no harm in temporarily storing it on the stock exchange, when conditions are stable you can withdraw it back to your wallet.I agree that, if you have a steady income at a real job and the amount can cover your daily to monthly needs, then there is no reason to sell bitcoin now. You can accumulate your typical campaign earnings each week as a long-term investment, while still being able to sell a percentage of it when you need more budget in the lean months.
We're still facing the high transaction fees again, and it seems like it's something that we have to get used to that it must happen periodically when the mempool is congested, so every Bitcoin holder should have a plan b when it occurs. In your own case as you're doing DCA method, I think that it's best if you can be disciplined and hold your weekly earnings for a period of one month before sending it, to minimize the amount of the fees, since you'll pay about the same fees if you're sending it weekly. It's not advisable to leave your coins in the exchange and relax.
This is very normal if there is a traffic jam, if we get weekly income from the campaign, if we don't have an urgent need, I don't think there's any point in selling it, if we have income in the real world. If urgent needs cannot be avoided, you can seek a temporary solution from your friends or relatives by borrowing money. When conditions return to normal, you can sell it. If we accumulate it every month, in my opinion, with fairly high transaction conditions, there's no harm in temporarily storing it on the stock exchange, when conditions are stable you can withdraw it back to your wallet.
We're still facing the high transaction fees again, and it seems like it's something that we have to get used to that it must happen periodically when the mempool is congested, so every Bitcoin holder should have a plan b when it occurs. In your own case as you're doing DCA method, I think that it's best if you can be disciplined and hold your weekly earnings for a period of one month before sending it, to minimize the amount of the fees, since you'll pay about the same fees if you're sending it weekly. It's not advisable to leave your coins in the exchange and relax.
As long as bitcoin exists, there will always be a situation like this and also note that this is not going to stop anytime soon, and bitcoin have to be aimed at a long term views this way you can easily avoid draining your entire money on fees.But then we have to wait to see things settled along the way, and also be prepared to any future challenges that may come up I the future.
As long as you trust your exchange I don’t see any immediate need to withdraw. Certainly if transaction fees are a concern then withdrawing once every could weeks or even monthly is probably not a big deal. In times like now where there is uncertainty I wouldn’t want to be storing funds on Binance, but in normal times there’s not a huge risk in leaving a couple weeks of DCA on an exchange.
This may stand better chance of limiting the exchange fee if you have good knowledge with the exchange and have trust you can allow it to accumulate for month to avoid the regular withdrawal which might implied different charges at each oint as this will only be once .
We're still facing the high transaction fees again, and it seems like it's something that we have to get used to that it must happen periodically when the mempool is congested, so every Bitcoin holder should have a plan b when it occurs. In your own case as you're doing DCA method, I think that it's best if you can be disciplined and hold your weekly earnings for a period of one month before sending it, to minimize the amount of the fees, since you'll pay about the same fees if you're sending it weekly. It's not advisable to leave your coins in the exchange and relax.
As long as bitcoin exists, there will always be a situation like this and also note that this is not going to stop anytime soon, and bitcoin have to be aimed at a long term views this way you can easily avoid draining your entire money on fees.But then we have to wait to see things settled along the way, and also be prepared to any future challenges that may come up I the future.
We're still facing the high transaction fees again, and it seems like it's something that we have to get used to that it must happen periodically when the mempool is congested, so every Bitcoin holder should have a plan b when it occurs. In your own case as you're doing DCA method, I think that it's best if you can be disciplined and hold your weekly earnings for a period of one month before sending it, to minimize the amount of the fees, since you'll pay about the same fees if you're sending it weekly. It's not advisable to leave your coins in the exchange and relax.
Do you hold fiat for a month and then buy bitcoin and withdraw it? Or buy bitcoin every week and then withdraw the BTC once a month? I have the second method instead of holding fiat for 1 month.But this is our plan about DCA that is still on the run and honestly still relying on exchanges to buy bitcoin because it's easier for us to deposit fiat in our local currency.
There is also storing assets on the exchange for a month for me it does not matter as long as it is not too long
But there is one problem. If someone is earning low income from 50$ every week and uses 30% of this income to buy Bitcoin in the CEX. If the price of Bitcoin drops he might end up losing his money to 0$ depending on how dip bitcoins goes sine the bitcoin is small.
We're still facing the high transaction fees again, and it seems like it's something that we have to get used to that it must happen periodically when the mempool is congested, so every Bitcoin holder should have a plan b when it occurs. In your own case as you're doing DCA method, I think that it's best if you can be disciplined and hold your weekly earnings for a period of one month before sending it, to minimize the amount of the fees, since you'll pay about the same fees if you're sending it weekly. It's not advisable to leave your coins in the exchange and relax.
Do you hold fiat for a month and then buy bitcoin and withdraw it? Or buy bitcoin every week and then withdraw the BTC once a month? I have the second method instead of holding fiat for 1 month.But this is our plan about DCA that is still on the run and honestly still relying on exchanges to buy bitcoin because it's easier for us to deposit fiat in our local currency.
There is also storing assets on the exchange for a month for me it does not matter as long as it is not too long
I don't think fees will go down to a point where you can use BTC for micropayments. It will only be feasible through "The Lightning Network". For large transfers, using the main BTC blockchain would be the way to go.
we don't expect the fee to be going down when there's just so many things are gonna be flooding the bitcoin blockchain, before it was BRC20 and that successfully caused the fee to be high, now its runes, well to be honest i'm expecting something other than brc20 and runes in the future that could cause transactions flood again to be honest.Before it was BRC and now it's Rune, I'm pretty sure things won't stop here and more spam will be generated, we should really adapt to this. But I still don't understand why the developers haven't come up with a solution so far, are they looking for a way or do they not care about this?
We're still facing the high transaction fees again, and it seems like it's something that we have to get used to that it must happen periodically when the mempool is congested, so every Bitcoin holder should have a plan b when it occurs. In your own case as you're doing DCA method, I think that it's best if you can be disciplined and hold your weekly earnings for a period of one month before sending it, to minimize the amount of the fees, since you'll pay about the same fees if you're sending it weekly. It's not advisable to leave your coins in the exchange and relax.
honestly i'm thinking of when DCA-ing an asset we could just diversify the use of exchange, its to mitigate collapse like what FTX has experienced back then, if worse come to worst there are still other exchange available and more likely our assets are safe in the other that doesn't get affected, it might seem impractical for many people, the alternative might be just buying bitcoin wrapped in other blockchain.Storing bitcoins on exchanges has never been advisable, but I also think it is a temporary solution for the time being with high fees. Distributing bitcoin across multiple exchanges is also not a bad idea, this will also have risks but the risks will be dispersed if the exchange collapses or is hacked. I will consider this idea if transaction fees do not decrease.
I don't think fees will go down to a point where you can use BTC for micropayments. It will only be feasible through "The Lightning Network". For large transfers, using the main BTC blockchain would be the way to go.
we don't expect the fee to be going down when there's just so many things are gonna be flooding the bitcoin blockchain, before it was BRC20 and that successfully caused the fee to be high, now its runes, well to be honest i'm expecting something other than brc20 and runes in the future that could cause transactions flood again to be honest.We're still facing the high transaction fees again, and it seems like it's something that we have to get used to that it must happen periodically when the mempool is congested, so every Bitcoin holder should have a plan b when it occurs. In your own case as you're doing DCA method, I think that it's best if you can be disciplined and hold your weekly earnings for a period of one month before sending it, to minimize the amount of the fees, since you'll pay about the same fees if you're sending it weekly. It's not advisable to leave your coins in the exchange and relax.
honestly i'm thinking of when DCA-ing an asset we could just diversify the use of exchange, its to mitigate collapse like what FTX has experienced back then, if worse come to worst there are still other exchange available and more likely our assets are safe in the other that doesn't get affected, it might seem impractical for many people, the alternative might be just buying bitcoin wrapped in other blockchain. 
We're still facing the high transaction fees again, and it seems like it's something that we have to get used to that it must happen periodically when the mempool is congested, so every Bitcoin holder should have a plan b when it occurs. In your own case as you're doing DCA method, I think that it's best if you can be disciplined and hold your weekly earnings for a period of one month before sending it, to minimize the amount of the fees, since you'll pay about the same fees if you're sending it weekly. It's not advisable to leave your coins in the exchange and relax.
I don't believe that is a good idea to leave funds in a centralized exchange for quite some time. The transaction fee issues have started again and I think the best thing now for investors who are dcaing is to keep their funds i fiats for an extra week so that they can combine this week and next week fitat that is supposed to be used for DCA to invest during the month end or next weekend. By this way the percentage remains the same only just the time period would vary to bi weekly or monthly depending if the high transaction fees persist.
Leaving funds in CEX is never recommended, but changing it by buying to bi-weekly or monthly, might also make us lose the opportunity to buy it when the price is low, because in recent times the price changes have been quite fast, so in my opinion we still do DCAing as usual but withdrawing Bitcoin has changed to bi-weekly or monthly, but have the current conditions made CEX increase their withdrawal fees? If the CEX that we usually use doesn't increase the withdrawal fee then you can still make withdrawals every time you finish buying, the problem is that the CEX increases the withdrawal fee and when I checked at the exchange I used to make a transaction, yes they increased it and that's an unreasonable amount because I have to pay around $50 for one withdrawal, so it's better to keep it in CEX until it returns to normal because if it's for the short term I don't think it's a problem but not for the long term and increase the security of our CEX account. And if you want to profit from the hype without needing to pay high fees, then leaving your coins in an exchange for trading (temporarily, of course) would be the way to go. Just spend your money wisely, and there should be nothing to worry about.
That is probably the best way to deal with high transaction fees if there is network congestion but people still need to keep buying Bitcoin. They should use a trusted centralized exchange, keep buying and storing in their account, keep it secure with 2FA and every possible security option they are given by the platform, and withdraw to their non-custodial wallets only when the fees are back to normal which happens after some time as we have seen.
Someone will surely have to pay a lot of money in fees if they keep doing DCA and withdrawing every time from the exchange platform to their wallet if the fees are high, so one needs to do what's better in that situation and the solution is to buy and wait.
DCA is a good strategy. But in the case of Bitcoin, it does require a lot of fees in terms of fees. But everyone knows the solution to this issue; it all depends on how you prioritize. The options are as follows: 1. Increase the timeframe. Instead of weekly purchases, make monthly or quarterly or even semi-annual purchases. There won't be a big commission here. 2. Use Bitcoin equivalents rather than real Bitcoin. For example, lining-bitcoin or sovrin-bitcoin. Or wrapped Bitcoin on EVM networks such as Polygon or Arbitrum. Or BNB. This will really allow you to save on fees. But you have to pay for everything. The second option is bad for those who prefer to deal with real (native) bitcoins.
This is why it would really be that important that you should be having some reserved USDT on your exchange wallet even though its not recommended to store tons but this is the only method
that i do make use through years when it comes on talks about DCA'ing on which im trying out to avoid those network fees but actually it isnt really that much on which based up on my awareness i have seen about
when your funds is really that inside on exchangers on which you could really just that simply make out some purchase whenever the market would really be having its correction and you do
see the opportunity for you to buy cheap.
It is really that giving out that huge hindrance whenever you do see those network fees to be that high when making up some transaction specially if you are a type of
investor which does have only that sufficient amount of money for you to buy up with. If you are some sort of whale then these fee things or concern wont
really be that much of an issue for you.
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