Topic: How to DCA when BTC crashing (Read 409 times)

You can divide your money into several parts and start buying when the decline occurs. You also need to create a target price for buying and if you can, you can directly use a buy order so that your order can be filled immediately when the price drops. From $20k to $17k today and even $16k yesterday, you already earn 4 shares of BTC if you buy on every drop. And if you still have money, you can wait for the price to drop again. But don't buy immediately because you panic because it could be a trap created by people who have a lot of money to shake market conditions to make it worse.

DCA, in my opinion, is one of the effective ways for me to invest in Bitcoin. Let's say that we are expecting the price to end at $15k, but we will not only put the rate at $15k. I can simply make some rate positions likely at $18k, $17.5k, $17k, $16.5k, and others. There may not be a big difference, but we must also keep watching the movement of the market. Because we don't know that sometimes the price can jump up significantly only in some hours or can drop drastcially very quickly. Here, analyzing and watching the market situation is very imortant moroever if we are doing DCA

Just purchase whenever you feel that you want to do it and this time, it's not going to be a waste of time and opportunity because the prices have become low.
Before the price of bitcoin recovers, you should be prepared for the usual thing that it gives us and that's the volatility which is normal from day to day that we look at it.
If you're having hard time looking at it and you want to DCA then don't ask yourself how but start doing it because everyone has an idea on how to do it.

People should be minding about there are indeed scenarios or situations which could really be considered as a sale but eventually people do ends up on panicking this is why they do really miss out this kind of

opportunity on making profits.DCA is something that a common strategy but not all does have the money on doing so this is why they are really waiting for possible bottom.Did people do able to get in with that

$15k price possible bottom? For sure there are ones who do able to get in but only a few.No one had anticipated that drop and this is why its really that recommended on
doing DCA when you do have the funds on using on.

I think the drop doesn't matter at this short period, it is only about when we will go back to bull and that’s it. Obviously, people think that bull run will not start today or tomorrow, but they do not realize that it will start some day and that means we are going to just end up with a good profit eventually. That’s why the current drop doesn't matter, since you will be able to profit from it eventually one way or another.

I personally do not believe that it will be doing badly, and at the same time it’s not going to be a long term problem and it will be fixed as soon as the bull run starts and that will be the key to our success long term, so who cares if it goes down in the short term, I don't care.

Specially on this moment where the price had plummet back again on $18k which is something that we cant really see that often but pretty sure that people would be having doubts considering that they've been thinking about those rumors or talking around about 10-13k price point which the market could possibly dropped on Bitcoin.Its true that this is something that cant really be avoided for you to think about probabilities.
Now is the time on making up some DCA specially to those who had bought or entered on 21k as far as i remember as the price starts to dump down then it wont really be that a bad
idea on making out some average down decisions specially as of this time where there's a potential that the market might go down even more.

I suggest you to buy at every drop and for when you buy it, it depends on your readiness to determine the right buying price for you. Maybe you can buy when the price drops to $20k, $18k, or even go all-in at $15k but you shouldn't go all-in because that would be risky, especially if the price still drops even lower. In addition, you also have to set the amount of money you use every time you buy because it will affect the next purchase. Perhaps you can provide an example that you would like to use so that we can offer other suggestions.

Price increase/decrease shouldn't matter much when you're doing DCA, it may be a factor for your entry but after that, it shouldn't matter much. There's also the factor that you look at it generally in the long term, which could span from half a year to over a year at minimum really. It wouldn't be a disadvantage to investing at a higher price range since you're not investing everything you can lose, you're spreading the investment across your entire investment duration so losses would be minimized as well imo.

And this is very common, even the traders which can obtain profits rarely beat the markets, I remember reading about this and less than 5% of traders could do this, and as you may guess almost no one could do it consistently, so the strategy of just buying the asset you like whenever you could is not only easier but it is also more profitable, generates less fees and taxes as well, this may seem odd especially to newbies but the evidence is there for anyone to see.

Obviously, it’s the best time to do DCA when btc is crashing as you will always target to buy in every price drop for bitcoin. Most particularly if you are tight in your budget and still you want to invest, then do DCA so you can still maximize accumulation of bitcoin in every price drop opportunity. Much better if bitcoin price continue to drop, then it will always mark as the best entry in the market.

That is literally the reason why I am using it. I tried to be a professional trader way back in the day, this was more like 2016 or 17 I think and I was getting coaching and studying and reading, and basically all the right things to do and meanwhile there were some bitcoins saved aside. Even though I got better, the coin that stayed there went up higher than the trading profits that I made.

It was the famous 2017 bull run of course but the idea that when I do not touch it at all the price went up higher did made me a bit laugh out loud because I worked harder on the trading part, and I did not make that much profit. Which was the reason why I went with DCA and long term holding instead.

yo man, Dollar-cost averaging is the practice of systematically investing equal amounts of money at regular intervals, regardless of the price of a security.
So I guess you can do it well

DCA is a strategy that is so simple that you do not need to be a professional trader to execute it correctly, as long as you can save some money each week or month, you are capable of buying bitcoin at regular intervals and you can hold your coins then you have what it is necessary to do DCA, it is just that it takes some time for this strategy to bring profits and if you begin to do DCA when the market goes down then you will accumulate several losses, making very difficult to hold your coins.

Actually in trading investment of cryptocurrency, the target of an investor is to buy exactly at low price and sell at higher price because of it's target, actually someone who purchase at low price is expected to sell Bitcoin at higher, so the illustrations you gave op, the crashing or losing of any coin from any investor will be determined by its target or what it's the investor's objectives before sells

Percentage allocation on every drop on every increment would be totally be depending on someones preference or on how much percentage he could risk out whether it would 50% or much lesser but its true that you

should allocate on smaller percentage so that you do still have money left when the price dips even down more further but since its your money then it would really be your right and preference on how big you would

be allocating on every price drops you've been encountering.People do say about commonly about DCA but not all would really be that confident enough on doing so.
You would be always thinking that the price might drop down even more which this is where we do really end up on waiting on something which isnt assure for it to happen.

I think 50% on the first drop level is too huge but why not put 10% or 5% instead? So that you still have something with you when the price falls to $18k, $17k and so on. Market might go down below $15k but we don't care about it anymore because our last set price for DCA is only $15k but if you are sure that more drops will occur after this then you better lower your limits.

I know the chance for the price to drop more will get lower and lower but it's not really a big deal since we already bought something before. Waiting for a really low price isn't only advisable for those who are buying at large quantities or to those who don't do a DCA strategy.

The most important thing is that before starting the DCA strategy, you should understand exactly what and how the DCA strategy is.
I think DCA is a strategy that is suitable to be applied for the long term and has the potential to generate higher asset values ​​by reducing existing risks.
This strategy may also be suitable for people who are not used to it or do not have time to constantly monitor price movements.
DCA in general is like saving regularly and periodically with a nominal that you have determined.
Buy crypto assets little by little, with the same amount each period, regularly and within a certain period of time, for example one year.
Try several platforms that support the DCA strategy. This strategy does not guarantee you will be successful like a lump sum investment.

DCA means Dollar Cost Avarege which should be done by a pro trader. If you want to do DCA at the range of 20000 k you should buy a little in this price and if it dumps you should buy more. If it dumps more you need to buy again and much more. That's the theme of doing DCA.

I don’t usually DCA when the price is way above my target buying zone. I usually buy somewhere between the price of $18k to $20k every month with my extra “not beer” money. For now, I am aiming for long term of accumulating more BTC while things are getting quiet for a while like the bear market. I’m actually preparing for the halving event, but of course I’ve got to prepare for unexpected circumstances later on.

In DCA price is important but not time. If you looking at the time only you will miss DCA intent. If you looking at time only you may buy at very high price. I think using price is good for DCA. You need to set a price range that you want to invest in and with that price the time may not be appropriate for it. Accumulation in lowest price is profiting but targeting with time you can buy in high price which is not profitable. Time is not the right investment for DCA strategy but price. So you can set your buy order lower most times although it can be higher price but not  regarding to time.

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.

I can still consider this as DCA and would be a very good means of investing in bitcoin. In trading, it should not take beyond some weeks before selling. But while investing, it can take some months. Very possible the strategies can be used for both trading or investment, I think duration of time is what that matters to consider it either trading or investment.

Well, this was about trading, not investing.
I think that in trading the DCA works in a way like:
* you buy at 20k and set 22k as selling target
* if it falls to 19k then buy more
* if it falls to 18k then buy even more
* if it falls to 17k then buy even more, if you still have funds
* if it grows you sit and wait until the 22k target is met (or, if you've bought at 17k or 15k you can decrease the target too, according to the prices and amounts you've bought at so you get some profit)

I am not sure 100% though if I've got it right.

Assuming you want to invest $1000, you can start investing $50 every week. That is the meaning of DCA. As you are investing $50 as bitcoin price decreases further, you will still  be able to invest some amount when its price is low. If you take the average of the weekly invested amount, you could have invested at $17000 in average which is better than investing all at $20000.

Lets be assumed


BTC Crashing 20000$ and 15000$ maximum . From 20000$ how to DCA?