Topic: How is your DCA solution? - page 3. (Read 931 times)

When I hear a low coiner talking about waiting on the dip to invest, I tend to see someone who is most likely not going to invest at all. Why do I say this;
Being a low coiner at this stage is defined by one with very minimal experience. Yes, there might be those who have gained theoretical knowledge by taking several studies but, it doesn’t end there. When you start buying and experiencing the flux of the market, there the market plays it’s best cards on you.

So yeah, a low coiner has little or no experience and as such, you can’t predict the dip for sure nor is any of the veterans which makes you procrastinate on investment even after presented with the best opportunity.

I have seen some users on the forum propose a $1 per day and over $7 a week. The $100 seems even better as compared with these but, it’s what there income allows of them and that’s good enough for them but still, they should be ready to do the time it takes to add a lot of value and that could be such a long time, who knows.

I actually use binance P2P myself and like you said it's very recommendable because for every transaction you carry out the binance system is actually there to act as a middle for the transaction which somehow is acting like the escrow service you mean. Transaction on binance P2P are actually quite easy if only you are strict and follow the rules that covers your transaction, I bet you won't have any problems with buying your bitcoin on a steadily basis with its P2P trading.

Overall, I don't have any problem with your strategy erep, but it still seems to be a strategy that would have better chances of working well for someone who has already built a decent BTC stash, and so if you are either a no coiner or a low coiner who is still in the earliest of stages of building a BTC portfolio, it may well take several years, before there is any value in waiting to buy on dips rather than just buying regularly at any price (aka DCA).

Another thing is that OP seems to be talking about $50 to $100 per month, so it is not a whole hell of a lot to work with, and depending upon how high of an annual salary s/he has, it could take well over 10 years, at such rate, to even get to a point of having a year's worth of salary invested into bitcoin.. of course, depending on what is the overall income and if it might be less than $6k to $8k per year, then it should not take 10 years to reach 1 year's salary invested into bitcoin.

I also thought about the same solution to avoid the cost of buying bitcoins on exchange or P2P, the purpose of investing DCA method is to avoid the risk of fluctuations in the crypto market and we have to analyze the market to buy bitcoins at low prices, so we still have time to save 100 USD every week/month for investment funds.

However, each trader/investor runs a different DCA strategy and I focus on analyzing the market to buy at lower prices and collect funds every week in USDT before deciding to convert to Bitcoin. If the results of my analysis show doubts about future market price movements then I prioritize the option of collecting USDT for several months, because patience is the main thing in crypto investment and prioritize this advice "it is better to miss investing at market correction prices than regret not having reserve funds when market price is bearish".

In my country, there are a few p2p local exchanges that can sell Bitcoin directly to you, but for any amount of Bitcoin you buy, they will deduct $3.

For example, if you buy $300 of BTC, you will receive $297. So, I don't know the country you are in; if they have any such local p2p, you will need to look at their terms to see if they are favorable. But if that can't be possible, then I would suggest you look for a DEX that you can buy your Bitcoin from, although I don't know how much their own withdrawal fee can be. You can better still save your fund in Fiat, and any time you have accumulated up to $100, you can just buy it at once instead of buying it $20 by $20 all the time, which will make you spend more money anytime you buy a small amount.

My advice, if you really continue to accumulate the money you have every week/month in bitcoin assets, it's better to just keep doing that. Because if you withdraw the bitcoin assets that you have into your wallet, especially if the amount of assets is not too large, it will actually be quite detrimental to you. Examples like this. As you said, that you always accumulate your money every month $ 50. means taken the average point if two months you have earned $ 100. That way, once every two months, you withdraw the $100 bitcoin assets into your wallet, at a cost of $14.

This means that in a year, you can withdraw bitcoin assets into your personal wallet, if you average it out, that can be 6 withdrawals. That way, you also mean paying the withdrawal fee for 6 times. Then if the monthly withdrawal fees are added, it amounts to $ 84, and the bitcoin assets you collect for a year total $ 516. So you could say that the bitcoin assets that you have collected over the course of a year, are taken approximately during the two months that you have accumulated money, for withdrawal fees. So my suggestion is that it is better to withdraw the Bitcoin assets that you already have, at least every 6 months or once a year. So the withdrawal fee will be less, compared to withdrawing once every 2 months.

But that's just a suggestion, because basically it's quite risky, if you keep storing bitcoin assets on a centralized exchange. So it is indeed safer if you store bitcoin assets in a personal wallet. So it all depends on your decision.

It's interesting, and at the same time impressive, that the amount that you have in your possession to start investing in bitcoin with does not really matter. What matters most is that you have a laid-out plan for how you want to make your accumulation and how much you have in mind to bag before a given period of time. I'd bet you that if you continue doing that nonstop, you are never going to regret it.
 
In the aspect of this withdrawal fee, this is always the problem when using centralised exchanges, as privacy and account restrictions are not just their problem, but the issue of you not being able to select what you want your fee to be like is another thing that usually bothers many, so for you to be free from such a fee, you might consider using any of the dex mentioned by other users above, as you are given the option to always select which fee you want to use, and what you select will determine how fast your coin will take before it arrives at your wallet, but it will save you a few cents, and that could also speed up your accumulation process.

I am going to start out by saying that there are surely quite a few members who seem to be fighting the scenario that OP presented such as using a DEX instead of a CEX, and proclaiming that the solution to OP's problems is to get a bitcoin job and even to join a signature campaign, which OP may or may not be able to do any of those kinds of things in the short-term - or at least in a practical sense, even though they are not necessarily bad suggestions, they just aren't the scenario that OP presented in order to deal with his actual facts on the ground.

OP is largely correct about the Binance withdrawal fees if using segwit versus non segwit withdrawing.  

Coin/Token       Network                        Minimum Withdrawal       Withdrawal Fee
BTC                 Bitcoin                               0.0002                               0.00007

                      BTC(SegWit)                      0.001                                 0.0005

                     Lightning Network               0.000005                           0.000001

https://www.binance.com/en/fee/cryptoFee    

So it can be a bit confusing to make sure that you are using a non-segwit bitcoin address in order to receive cheaper fees, rather than the 0.0005 BTC fees.

I am not personally against keeping some funds on exchanges, and if OP is merely buying between $50 and $100 per month on the exchange, then I have no problem letting that amount of BTC stored to build up between $500 and $1k before withdrawing it, and of course these are discretionary matters regarding how comforable any of us might be in terms of how much value to keep on an exchange and also one of the powerful things about bitcoin is having our own personal stash, so it will be important to also have a personal stash that is separate from anything held on exchanges, and perhaps the longer that we are in, the lower percentage of our overall stash would be held on exchanges and./or with third parties in any kind of way.


This is not really called DCA.  Instead you are describing a practice that would be some form of buying on dips, and surely I have no problem with the idea of buying on dips, but the practice of DCA has the potential to get a BTC newbie into building up a BTC stash without fucking around with trying to figure out the BTC price and whether it is a dip or not, and how much of a dip and whether or not it is going to keep dipping.  Sure, if any newbie has time to figure out those kinds of things, then there may be some advantages inn terms of buying some of the BTC cheaper, but there also could be risks if the newbie fails to buy enough because s/he is too busy getting greedy instead of just persistently and consistently stacking in order to build up the BTC holdings, and then maybe after 3-6 years of consistently and persistently stacking BTC, then maybe at that point, there might be some additional luxury in which strategizing to wait for dips might be an o.k. approach, even if waiting for dips might not be that great of a BTC accumulation approach for someone who does not have any BTC and/or does not have many BTCs (i.e. low coiners and no coiners).


I agree with this.  Sure, if someone is able to find ways to earn BTC, then no problems with that, yet I recall so many people back in 2014, 2015 and 2016 who were fucking around with signature campaigns and other ways to earn BTC, and they were bragging that they never bought any BTC, and yeah, they ended up with 2-5 BTC that they got for free, and maybe they could have easily ended up with more than 20 or 30 BTC if they had been buying BTC and or figuring out ways to increase their fiat income in order that they could use the extra money to buy BTC.  Remember in 2015, BTC was in the mid $200s for most of the year, so $25k spent on BTC would have resulted in 100 BTC.. and so $5k could have gotten you 20 BTC.


I doubt anyone here should be giving legal advice, and for sure, legality is going to vary from location to location, and sometimes governments regulate or overly regulate and/or ban things like bitcoin, so each of us has to make choices regarding how we are personally going to deal with those kinds of issues, and sometimes governments end up fucking their citizens through their "anti-crypto" laws, which also might include bitcoin in what they are prohibiting in one way or another.


That sounds like a good problem to have... .I have that referred to GazetaBitcoin thread on my list of threads to look at, too.


Yeah. .it is not always easy to find someone in order to both transact directly and who might want to transact with you that would end up being cheaper in terms of fees... and then also, if you are using an exchange to buy at a time of your own choosing, you can set your prices, but if you are dealing with another person, there may be timing issues, and no one is going to be on call to sell you bitcoin at the exact moment that you want, and they likely are going to prefer that the BTC prices are at a stable place when the transact with you rather than if the prices are moving around a lot.


I have never done that either, and I would imagine that if you are not very well known on the forum, some members are not going to want to transact with you until you have shown yourself to be reliable... and sometimes it might not be clear about the process of transacting, which is one of the advantages of in person transactions with cash, if you are ablle to find anyone to transact in that way.


I am not sure if lightning network completely resolves your problem, except you end up getting your BTC off of Binance with a relatively low fee, but then you still would like to ultimately move those funds to an onchain BTC wallet rather than keeping them on a lightning network wallet, so maybe using lighting network would allow you to set your own fees if you are moving your funds from your lightning wallet to an online wallet and trying to time when the fees would be best... .  

I have been using Phoenix and Breez for my lighting network wallets, but I have not really moved funds back and forth between my lightning network wallet and then to an on-chain wallet.

Somehow JayJuanGee has reminded me of this one topic with 1 merit - but that's good because I started to realize that you had quoted my post a while ago.

BABY SHOES - You need to know that many users who can post something useful consistently can set reasonable targets for when they should be able to move up the rankings and build their account's reputation well. You might be able to do it if you can do it consistently - but so far I haven't seen you do it. If you're having trouble doing it - I believe you should have a fixed budget to do DCA.

Since you've mentioned Binance and you're aching the fee that you get from withdrawing there. The best thing to withdraw is through Lightning Network. The fee as shown on one image isn't that much. I'd prefer to withdraw it on that network than the other networks that you're allowed to choose. And about your DCA, it doesn't matter how much you're buying weekly or anytime. The importance of DCA is your discipline and being consistent there beats the other strategy that others may do once in a while.

Yes, Binance P2P is an alternative option that the OP can decide to use too. Binance acts as an escrow service during the transactions. There are no fees on Binance P2P so that could be a solution that the OP needs. It is the merchants that the individual would interact with that set their own exchange rate for the various payment methods. Just as you would while being online, the individual must adhere to safety tips which includes taking the time to verify the information of the recipient and very importantly, if you start a transaction on Binance P2P platform, do not take it out of there no matter the suggestions you may receive from the merchant.

That's right, one of the trading tips that really works today is the DCA System. So, for what you asked above, especially in the case of WD BTC, every platform Binance or other trading exchange sometimes has errors, especially when there is a crash. During a crash, there was a change in the gas fee for the withdrawal process in BTC and that's normal. If you encounter an error like this, cancel your intention first because basically the exchange holds us back from withdrawing assets when the market crashes.

Another solution is, convert your BTC to BUSD/USDT and use the BSC network or SOL Network when you do it or send it to the address you want and I think it's better and cheaper and the gas fee charged on your transaction is the fee that applies at the time of the transaction carried out on the blockchain network, the gas fee can change at any time.

I encourage to keep buying with the little you have but you can increase your bitcoin investment by earning the currency. If you are fortunate to acquire jobs that you can paid with bitcoin you would be able to hold more. A member the forum compiled this list of jobs and websites that one can earn Bitcoin by offering services.
Cryptocurrency Job Lists. Maybe learning or developing a skill can give you a job in any of these crypto fields.

You have been given lists of decentralized exchanges by some members. I expect you to visit their platforms, study the terms of services and check their service charges. I care much about my privacy and the safety of my funds which means CEX is my best option anytime anyway.

You're right, thanks for the correction.


In fact, it's almost as costly as if you bought bitcoins p2p with no service fees. You can keep your old ways, this one:
Or by changing the pattern slightly, for example your DCA basis is weekly, then withdraw it every 4 weeks regardless of your withdrawal amount in $, because the fees itself is flat.

Since almost everyone of us here does not suggest holding funds on exchange for a long time, so saying that @OP should accumulate big enough funds to make the withdrawal unnoticeable can be viewed by many as absurd but since the fund is on Binance, in order to save a huge amounts from withdrawing regularly, @OP can do the saving then withdraw when the fund is big enough as I stated on the earlier statement.  And since it was stated that the lightning network is enabled in Binance now, I believe OP can try it and see for himself if he can save a fee while withdrawing his bought BTC regularly.

Right. With P2P, you can always negotiate your partner on the price that you both agreed, without the need to experience high withdrawal fees. Another solution is to involve yourself in jobs that are compensated with bitcoin. You need to acquire suitable skills of course so that you will be accepted in your job. Not definitely that you will expect a long lasting job like your day job, but at least the compensation you get could be 5x or 10x from you salary in fiat.

You can’t expect it from Binance or any centralized exchanges. Use DEX instead and maybe you’ll be satisfied enough with its low withdrawal fee. Also, if you have the knowledge and skills to join any signature campaign, I certainly think that it’s another good idea to accumulate bitcoin aside from buying it through DCA. Or maybe apply for some side hustles online that pays btc, that way there’s no reason for you to buy anymore and complain about its high withdrawal fees everytime you try to purchase.

I know funds and privacy are important but I've never used a decentralized exchange, now I still trust CEX to buy bitcoins, but buying at CEX doesn't mean I'm doing illegal activities right?
I had to study your thread because it's so long. 

Actually there is an option for that, some local communities sell coins but the average of them is that altcoins are still very rare to sell bitcoins because maybe there are few enthusiasts so the seller only provides more altcoins. This is the version I found in the local community.
Yes, I haven't tried the P2P service for this forum, maybe in the future I will look for reputable members here.

Building a reputation is not easy, it took a long time for me to be known by many people here, but I will try in any way including when I develop in terms of the quality of the posts so that I can contribute the opportunity to be included in the signature campaign. But that's still too far to think about.

When the last withdrawal was 0.0005 but maybe at this time the withdrawal was lowered by binance, still it was above $ 1.

On record, I have to understand it.

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I'm not familiar with decentralized exchanges are there cheaper fees? So do you exchange DEX more often than CEX?
Then you guys suggest the lightning network, do the majority here store bitcoin on LN or onchain? As far as I know only Electrum, BlueWallet and other applications support LN.
What about hardware like Trezor does it support LN already?

Sorry guys lots of questions.

You should pile up your funds to a certain amount and when it has gotten to a significant amount,you should use it for your DCA instead of this little weekly DCA method to save you the cost on weekly transaction fees.

You use also use p2p method on a decentralized exchange for this so that you can have a high level of privacy. And if you want to use Binance then you should use the Lightning Network for your transaction, since the transaction rate with be cheaper and faster. These are the same suggestions that has been given to you by the other posters above.

It's a live price monitoring website and of course they have instant swap too which wad introduced later. My bad, I have totally forgot to put the link. I was watching the final match of the Ashes, you know it was such a dramatic match that I couldn't keep myself out for a single ball from the last few overs (sad to see Aussie losing the match).
Here you go- https://pnnv.com/exchange
They have it for many months now and I have used a lot of times with more than a few thousand USD at a time. Don't take it as vouch though.