Topic: "Lump sum Vs DCA" for Bitcoin Accumulation (Read 663 times)

I'd choose DCA too as one can never time the market correctly, one may think it's dip but it keeps dipping and then you feel regret why did you purchase early. So yes, DCA all the way.

It will only work when you've just got to happen that you've got money that you don't want to spend somewhere else and you want it to get deployed into the market so that you've got assurance that you won't spend it to nonsense things.

But you have a point about we just can't do the lumpsum because you might need the money and the better approach is to DCA it. So that if ever the time comes that you're in dire need, you have the money to pull out of your pocket and at the same time you still have some allocation for your DCAing strategy for Bitcoin.

Indeed, you raised really good point here. Who don't want to have discount? it is obvious that everybody would like to have it. Probably not everybody get this opportunity of discount.


Yes, you said so well that do what gives you the least stress/anxiety, and do what makes you happy.


but can you please tell me how can a pleb will do lump sum because maybe it can be prove a wrong decision for him to invest all at once because we know that we can't time the market and his action of doing lump sum can be put him to do repent because maybe after that market go more down where  pleb can enter in the market to have good profit out of market. I so would say DCA is good for Plebs and short investors and Lump Sum is good for the Big Investors and big investors can choose any technique that they want.

Must share your opinion over this maybe we can get a better solution for This. Many Thanks!

Kind Regards...... Snowpega

The fact is that both strategies "Lump sum and DCA" are the best investment strategies, I don't do lump sum only rely on DCA strategy this is more what I prefer than lump sun there is a reason why it should be DCA because this has become the right fit for me so DCA every week at any price will not be a problem until it will still be profitable.

Waiting for the discount price I think many people do this they want to buy at once so that the results obtained at the price that the decline, maybe from them have prepared funds to do this because for myself every time there is more money holding for bitcoin it will immediately buy bitcoin without thinking about the price, yes this is called DCA.

Lack of knowing the exact bottom is why we use DCA strategy but when a massive dump hit the market it's a good time to use high sum of money to take that opportunity, assuming Bitcoin goes 40% down it's a big buying opportunity because you are buying the most valuable digital asset for lesser price and this opportunity will run out very quick, after every massive dump bitcoin always recover fast, it has happened so many times already.

And when the market is kinda calm and weeks goes by and monthly go by its accumulation phase, just keep using few dollars to buy some amount of Bitcoin for the time being, in this phase Bitcoin always go side ways for a long period of time.

The reason why I like Bitcoin investment is because you don't have to monitor anything else, you can keep buying Bitcoin while you are on holiday on an island a lot anywhere, compare to other altcoins that need constant monitoring, maybe a change of smart contract or other, they are so annoying.

How does smart portfolio function? I've never heard of it before, and I've yet to see a better way to accumulate bitcoin than the DCA method.  How does smart portfolio operate if it is good?
DCA is not difficult to accomplish; all that is required is your commitment and effort, as well as consistency. Everyone desires consistency, yet the influx of financial resources always limits the DCA method.  However, what is more necessary is to stick with the strategy for a long time in order to thrive and gain substantial profits afterward.

yes, both strategies have their own importance. I think DCA provides a disciplined method for accumulating assets over time, and it's great for those who want to reduce their risk and they don't not need to worry too much about market fluctuation. And executing a Lump Sum investment during market dips can also be a sound strategy, taking advantage of lower prices.

DCA is good regardless of the situation. What makes it not good for you guys is the fact that you're making a big deal out of crypto's price action when it was the very reason that you're using DCA in the first place which is to still have a stake on bitcoin regardless of the current price trend. You ever see people stopping with their DCA when there's a price decline? At least those who are sensible enough to always follow through with it no matter how the market looks?

Again, DCA is a surefire strategy to always earn in the crypto industry provided that you follow through with the regularities that it will force you to be. Fall short and you already fail.

Lump Sum and DCA are fine to do regardless of which one they prefer the most. In fact both strategies will only be profitable if they are actually executed at the right time. DCA at any price is fine mainly because of their approach to accumulation, but Lump Sum on dip is also fine. In my opinion, both strategies are mutually beneficial rather than finding out which one is the best between the two, but of course this must be adjusted to market conditions and also the budget we have.

Personally, I prefer looking for discounts, and buy the DIP and HODL. I know that DIPs could go lower after the purchase sometimes, but having a discount is definitely better than no discount if you ask me. But for the topic, "Lump sum vs. DCA", I believe from a plebs perspective just do what you are comfortable doing, do what gives you the least stress/anxiety, and do what makes you happy. In fact, you can do both if you want to, no?

¯\_(ツ)_/¯

As i aforementioned at the start of this thread;

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I am Really Happy to see you all here. I read all of the replies of this thread. You People really share your good experience, knowledge and your opinions to make this thread useful to other members who just started their journey for the accumulation of Bitcoin and still thinking which strategy they should use for the accumulation of bitcoin. Many Thanks!


Kind regards!

Basically, lumpsum purchases are good if the market is totally at the bottom so that when you buy and the market starts recovering from that point, you will have bought your assets at almost the best price because if you start doing DCA when it's at the bottom and keep buying when it's recovering, you will be getting a bit more expensive price after every purchase because the market will be going up, and that will result in you getting a lower quantity at the end.

DCA is useful when you are not really certain if the market will go up or down at some point and you don't really want to miss the current price point because you think it isn't bad. So, you start buying with a portion of your capital and then keep doing that after a specific interval of it either going up or down.

As a newbie in bitcoin, i always choose Dollar Cost Averaging. Because at start nobody have to invest all of his money in bitcoin. he must prefer to make investment in installment.

And also Lump-sum investment can be useful if you start learning how the market is behaving. but sometime market can be highly unpredictable, and even experienced traders can't make investment correctly.

Well if you see a considerable drop then it is of course smarter to go in lump sum so that you would take advantage of the situation, however I believe that DCA could be better for the long term, because price doesn't drop all the time at all times, sometimes it does drop and lump sum makes sense only during those times, in other times that doesn't really make sense.

Of course it's your decision and you can do whatever you want with it, if you want to go all in then you can go all in, if you do not want to go all in then you do not have to. Me personally, I prefer going with just purchase first of every month when I get my salary, I put 10% of my salary into bitcoin every single month (if I can) and that makes it better, no matter what the price is.

Yes, of course, a wise trader has this quality that he knows when and what strategy to use to see market conditions and make a profit. But the quality of implementing the strategy depends on your capital and how much you can invest in the market.

I will also show my position on the strategies of DCA and Lam Sum. Let's see which strategy is better and what market experience people say about it. It is true that in the past six years, LAMP SAM has performed consistently and better than DCA. But this does not mean that DCA is a bad strategy; rather, it means that it depends on you, as an experienced trader, what your reaction is to the movement of the market.
As Lamp Sam performed well in the past 6 years, traders emphasized this strategy, but the trend of up simulation analysis is more on DCA because, in the current market conditions, only DCA performance has been seen.

Therefore, I also believe that it is better to use the DCA strategy in the current situation because the volatility in the market has increased with the entry of big people and institutions into the market compared to before, and the price possibility from a technical analysis and long-term perspective can't be speculated on except in a few months.
So I think the DCA strategy is better than LAMP SAM for small portfolio people like us.

It is not DCA.

So what if there's a reserved money in case the price of Bitcoin drops? Does it automatically mean I'm involved in DCA? Of course, not. Again, lump-sum buying doesn't mean one-time purchase. If that's what you mean, then everybody is into DCA because I'm sure everybody has purchased Bitcoin more than once. But DCA doesn't just mean buying Bitcoin 2 times or more.

In the first place, if you speculate on the possible future movements of Bitcoin and do the buying according to that, you're not into DCA. If you're buying according to the price, you're not doing DCA.

Here are at least 3 definitions of DCA:

• Bitpay- "In the traditional finance world, dollar-cost averaging (DCA) is a time-honored investment strategy that involves purchasing set amounts of stock at regular intervals, whether the price is high or low." "Dollar-cost averaging (DCA) means making smaller, equal investments on an ongoing basis, instead of making large or irregular crypto buys."^[1]
• Coinbase- "DCA is a long-term strategy, where an investor regularly buys smaller amounts of an asset over a period of time, no matter the price (for example, investing $100 in Bitcoin every month for a year, instead of $1,200 at once)."^[2]
• Cointelegraph- "In the case of DCA, it’s initially about investing a certain amount of money in a predefined asset and at a fixed time."^[3]

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[1] https://bitpay.com/blog/dollar-cost-averaging-crypto/
[2] https://www.coinbase.com/learn/tips-and-tutorials/dollar-cost-averaging
[3] https://cointelegraph.com/news/what-is-dollar-cost-averaging-dca-and-how-does-it-work

Both Lump sum and DCA are very good strategies but it all depends on the investors capital, although among the two DCA strategy for accumulation is mostly use by the beginners who doesn't have much capital to use for accumulating Bitcoin so DCA strategy allows or enables them to keep accumulate using the little money they can afford by slowly and consistently accumulating.

 And one of the things about DCA is that it doesn't matter how far Bitcoin price has gone you will always accumulate since the strategy is slowly accumulating with only what you can afford with risk management.

Perhaps Lum sum is the opposite of DCA strategy because lump sum is when you have enough funds on your portfolio Instead of going through the stress of buying a bit by bit of Bitcoin you could as well buy everything at once when the price is favourable, but although I prefer using the two sometimes, reason been that while you wait for Bitcoin price to dip down so that it can enable us lump sum and if the Price move otherwise perhaps at that time we can re strategize to DCA by accumulating some Bitcoin while waiting the price to dip the way we expect it.

Yeah, but it wasn't lump sum is mostly the term that is being used but it was all-in or sometimes yolo. I can only mostly hear the word lump sum in money talks and, loan talks but I think both are still part of the economic discussion.

If we are into long term investing, I think the one that can give us a benefit the most is by doing Dollar-Cost-Averaging because we can sometimes buy at a lowest price using it but if we will only buy one time we can miss those good buying moments. Maybe a good analysis is needed to decide if which one should we go for but that isn't about the market, but about our financial condition or capabilities.

I will also do the same thing if I notice a considerable drop in price and also have the money to buy. I don't really see any need stressing myself with calculations and turning up weekly or monthly to buy Bitcoin when I can just put in the lump sum and focus on other things.

DCA method should be for those who do not have huge amount of money to buy at once but have regular income like salary; part of this regular income can be converted into Bitcoin through the DCA method.

Lump sum investment could be very risky not only for regular investors but most especially for newbies who are less knowledgeable on their investment but are very eager to invest. Of course, that's a whole amount that are hard-earned so obviously, you can't afford to lose it all. But for wealthy bachelors, who cares. Most especially if its the only way to gain big time profits. But we all know that most of the investors here only start from scratch that's why they think using DCA is more advisable. And as long they never missed opportunities to invest through DCAing, in the end they will still gain massive profits when the bullish market happens.

However, it's individual's decision whether to invest through lump sum or DCA. As long as future losses won't affect his finances, then for me whatever choice of decision is valid.