Topic: How to DCA when BTC crashing - page 2. (Read 366 times)

Elsalvador has not yet enjoyed a return on investment and has no opportunity to add to its portfolio at a current discounted price because its financial budget was spent on "market drops" in the past. This is an example if DCA is based on price, then traders tend to spend more and more capital.

DCA doesn't attach much importance to daily moves as it won't routinely see those declines. There are various unpredictable conditions, especially the world's macroeconomic fundamentals. If you just wait for the dip to buy, then there is no chance to do DCA especially when the trend tends to go up.

Start from now! just set a plan when you want to buy Bitcoin regularly, it could be everyday, every week, every biweekly, every month etc. The key of DCA is being consistent and don't being obsessed with the price, just stick to the time, not the price. If you're looking to buy Bitcoin at the lowest, you might lose the moment since you're keep waiting and waiting only. But if you buy the coins even though it's not the lowest, you could actually bought at the lowest.

Both are called DCA. If you want long term investment and your initial budget is not much then you can DCA, buy them weekly, monthly and buy them at any price and you iterate until you reach your goal.

But for investors with experience and capital in hand, they will DCA in a way, they will analyze the chart and buy in stages every time the market drops more. This helps us buy at the lowest price and get a faster return on investment. It will depend on your budget and how your capital is allocated.

I think DCA though has nothing to do with reading the charts. It is strategy wherein you buy bitcoin at certain time, for example every week or every month with within your budget range regardless of the price.


But I guess your point is that it's better to buy when the price is down, yes that is good. But then again, as I have said, it really depend on your budget size as you are not buying on a single prize point, but instead at different levels that you simply do it on a a "average", hence the term DCA.

You must be good at reading the charts if you want to DCA at the right points.
When the prices are dropping you need to wait and see when the price are bouncing back.
Just when they are bouncing back you can buy them and wait to see how the price goes next.
If the price goes further down then again wait for it to recover and buy at lower prices and if it goes up then wait for price to bounce back downwards and take profit.

The same way when bitcoin was in a bull run.

DCA has nothing to do with prices. You buy when it is going up and you keep buying when it is going down.

If you break this text pattern then it is not DCA’ing anymore. It is timing the markets now.

Since only a few people can time the markets and the majority cannot, people do DCA instead.

How to DCA?
I mean you registered in 2017 and still you don't know what DCA means?

What do you mean how to DCA? Is there any reason to make it complicated. Dollar-Cost Average is simply just using a specific amount of money to buy a specific amount of coin like Bitcoin at a specific time that you wanted to be. Isn't that simple? I mean even an investor whose been investing for months might've know that term and the definition of it.

Dude, seriously? you didn't even understand what's DCA mean. When you're only want to buy Bitcoin when the market crashing, it's not DCA anymore. To DCA you wouldn't look how much Bitcoin price and you're only focus to accumulate Bitcoin every day, week, or biweekly depends on your plan. If you only bought Bitcoin at the lowest, you're buy at the dip and no one can predict when the lowest will happen.

Dollar Cost Averaging (DCA) is a strategy where most investors invest a certain amount of money if they have regular reserve funds in a week or month, not all at once. And the investor basically divides his money to build his portfolio so that it is diversified and also gives him the opportunity to take advantage of market downturns without risking too much capital.
and if you target a maximum amount of 15k and the highest price of 20k you have to make periodic purchases at a price of 19k, 18k and so on. But I don't think the bitcoin price will reach 15k, and I suggest you should make DCA purchases without setting a maximum price during this downturn and for the long term to get satisfactory returns.

If we do speak about maximum $15k drop then, asking how to DCA?
If your purchased price or entry point is 20k then you would definitely be buying up on
19k,18k and so on.

This is where capital would really be the only factor that would be considered because you cant really DCA if you dont have the funds.
It would really be just depending or varying on how much you would be putting up on each purchase and on the time you do make a sell
whether on 22-23k price point or higher then profits are much higher considering that you have done DCA when the price is
plummeting.

Depending on how big your budget is to start DCA at $20k eg going to do when the price crashes or going onwards regardless of price, you can enter $10 to $100 including your ability to do this effort in DCA practice and you can calculate on the site this https://dcabtc.com/ is the same as shown above to be able to simulate your DCA how much time you want to set but it depends on you who do it yourself.

So I think it's simple to do it when the Bitcoin price crashes if you dare to do it, but if the price goes up it's your own decision to sell or not but what is clear is that DCA is an annual long-term strategy then you have to understand that, so many people do it. DCA because it wants to continue to get Bitcoin at the average price bought.

I think at 19k you can put 50% of your remaining capital into the market. And the remaining 50% you should put in the market at around 15k. Market might go even below this point but honestly that would be very temporary and has a very slim chance that would happen. Investing in these two chunks itself would be enough and will give you a dca of around 17k which is good enough in my opinion.

It's easy.

How much the budget you will have if those crashes come? The answer for your question on how you're going to DCA during these crashes will rely on that.

It's like buy $100 when the first crash comes, do the same thing when the next crash happens and increase a little if you can if the third or 4th and so on happens.

Is anything specific about Sundays? Or you think it is usually less volatile and price dropping at the weekend leading to Sunday before the start of the working days when stocks and other assets would open properly ? Yes IMO I have noticed Sunday sometimes to be a little down, this can be good to buy for hodl.


Any significance for this range of investment or just depending on the investment power of the investor?

What DCA strategy I do depends on the source of income sometimes, weekly, fortnightly, monthly not far from it at least in 1 month I have to have a record of DCA in for reports in my spreadsheet so this makes me do it regularly so that I know that during that income we can buy at what price in the average.

And it's like I won't think too much about prices, for example falling or rising, the important thing is that my DCA continues every month to do all the time, for example when the price is low maybe I can get more Bitcoin if Bitcoin goes up then I at least can't stop this must keep running so that's what I understand with DCA that has been applied so far.
In essence, every month, for example $200, it must be entered in a Bitcoin wallet.

It will depend on how much money you want to invest in bitcoin and how long you want to do DCA.

Example:
You use $1000 to invest in bitcoin and want to use a DCA strategy which means you buy every time there is a decrease in the price of bitcoin. So from $20000 to $15000, you have a target price to buy bitcoins but unfortunately, we don't know if the price will drop to $15000.

Most people buy bitcoins but not based on calculations and just randomly. But maybe you're better off using the DCA strategy for every month.

Example:
This month you buy as much as $ 200. The next month buys as much as $ 200 and so on until 5 months or even 1 year later.

Actually, this depends on the strategy you want to use because it also relates to your readiness to know when to buy bitcoin. It will depend on how much money you want to invest in bitcoin and how long you want to do DCA.

Example:
You use $1000 to invest in bitcoin and want to use a DCA strategy which means you buy every time there is a decrease in the price of bitcoin. So from $20000 to $15000, you have a target price to buy bitcoins but unfortunately, we don't know if the price will drop to $15000 or not.

Most people buy bitcoins but not based on calculations and just randomly. But maybe you're better off using the DCA strategy for every month.

Example:
This month you buy $ 200 in bitcoin. The next month buy $ 200 in bitcoin and so on until 5 months or even 1 year later.

This depends on the strategy you want to use because it also relates to your readiness to know when to buy bitcoin.

If you understand the rationale behind DCA, this question wouldn't have come from you! There is one simple rule for DCA - buy at every dip. Since no one knowns how much a dip can go, it's always good to buy small amount at every dip constantly over a period of time. That's how you can do DCA and hold for medium to long term for significant profit. No other technical things to remember here! It's that simple!

Isn't it obvious?  From the word Dollar Cost Averaging, you have to buy every time the price goes down.  That is the meaning of cost averaging.  And it depends on your preference for how you will spread your fund.  If you want to DCA every $1000 difference then you just do it.  If you think you have enough funds for every $100 dip then do it.  After all it all depends on how much your fund is and what is your preferred price to cost average.


DCA depends mainly on the price adjustment.  What is the meaning of cost averaging if you don't take advantage of the price dip?  It is a mere accumulation if it is not related to price changes.


You are just stating a blind accumulation. You schedule your date or purchase and disregard the price.  It is called accumulation and not cost averaging if you disregard the price changes.

DCA is more related to your capital management and less related to price increase or decrease.

You can do Dollar Cost Averaging weekly, monthly, quarterly, each six months and how often you do it will depend on your plan to allocate capital for DCA.

It in turn depends on your source of income. How often you receive your income or how often you have spare money for investment so that you can use it for DCA.

Use this website https://dcabtc.com/ to get estimation for your DCA.

If you talk about numbers you can use this ---> https://dcabtc.com/
With your knowledge of historical data, you can predict the best scenario, and from it take the ratio and divide it by 10 to expect estimated profits.
Mostly DCA is used with other strategies such as support and resistance levels, but if you want to ignore all the patterns and buy consistently without thinking, buy at $100 to $400 every Sunday for several years.