Is buying bitcoin everyday a good strategy?

Wexnident

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Quote from: Btcdeybodi on Today at 01:28:06 PM

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Then that's not DCA anymore, that's just buying at dips and selling at highs. Easy in words but hard to execute really, hence why people just use DCA where they put money in it and wait. In the first place it's a joke to check prices in a daily basis when you're doing DCA. It's supposed to be a strategy where you're looking to sell years after starting, not days, weeks, or months. If it dips? Just sit. If it pumps? SIT. You're not looking for a small profit margin in a small time frame.

As for DCAing every day, I think that depends on the person? I used to do it weekly, now I just do it monthly.

Cryptoprincess101

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Buying Bitcoin every day is not a bad strategy, but you will lose a lot of money as transaction fees when you are buying on a daily basis. But i find it stressful for someone to buy bitcoin every day because since your primary aim is to have a chance of buying at DIP prices each, a DIP can occur the next day and you might feel it will DIP even more for you to buy but volatility can still push the price upwards and you end up buying at that high price you have been dodging. You can DCA every week, it will give you more ease than putting yourself into confusion while trying to buy on daily basis because you can develop same behaviors as traders even though you are not trading but monitoring the market to find out when it is DIP enough for you to buy can be very problematic.

Nwada001

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If you have the money to be buying every day, the person can, if you check the amount you are to be buying and the expense you will incur for each of your purchases, like bank charges and withdrawal fees, and you see it's worth it and you can cover it up, or the same thing compared to buying it at the same time. I don’t see anything bad from that. You can buy every day, both when the price appears to be high and when the price also appears to be low. What matters is the focus to be able to reach the target volume you want.

rachael9385

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Quote from: Btcdeybodi on Today at 01:28:06 PM

Due to the volatility of bitcoin, there are days when the price of bitcoin skyrockets so high within some hours or within 24 and some days the price also falls drastically and tries to cause panic in the market so i was thinking that won't it be advantageous for someone who chooses to DCA everyday such that he can have the opportunity to buy at DIP prices since the market also experiences short time market fluctuations some days, instead of DCAing weekly or monthly which he can miss DIP prices since before the time of their next DCA, the price must have increased and he keeps buying more at high prices.

People who gets panicked when Bitcoin dips are those who want to invest on Bitcoin for short terms, so their reasons for panicking is because they want to sell their Bitcoin asset so quick, they also believes that before they sell, Bitcoin will skyrocket. However, a short term investor thinks Bitcoin is a get rich quick scheme before they intend to hold only for a short term. A long term investor does not get panicked when Bitcoin dips became they sees dips as the opportunity to buy more Bitcoins and hold.
Actually, buying bitcoin everyday is a good strategy, can use DCA method to buy them if you want.

I_Anime

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Well if you have a good cashflow to keep up with it, it ain’t bad , but to me I still prefer weekly , because you will have enough time to plan things ahead, though like our emergency funds , which may help one to avoid or prevent selling their bitcoin too early due to some unplanned or planned expenses . So I believe buying daily you can easily get exhausted needing to poor investment practices . But you can still keep some reserve money in case there’s or any dip occurs so that you can easily purchase it without it affecting my Dcaing practices .

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While timing is very important I think DCA should be done with a combination of time and analysis to be on the safer side since no one knows how deep the dump can go before reversing, and DCA should also be used with consciousness to ones capital

Btcdeybodi

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Due to the volatility of bitcoin, there are days when the price of bitcoin skyrockets so high within some hours or within 24 and some days the price also falls drastically and tries to cause panic in the market so i was thinking that won't it be advantageous for someone who chooses to DCA everyday such that he can have the opportunity to buy at DIP prices since the market also experiences short time market fluctuations some days, instead of DCAing weekly or monthly which he can miss DIP prices since before the time of their next DCA, the price must have increased and he keeps buying more at high prices.

Topic: Is buying bitcoin everyday a good strategy? (Read 37 times)