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Topic: DCA: the power of little beginning - page 2. (Read 1436 times)

full member
Activity: 448
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April 05, 2024, 07:49:16 PM
There are no restrictions on Bitcoin investment can be done by anyone personally anyways. DCA approach to investing seems very convenient to me. Apart from those who have a lot of money, I have seen most of the people in the world hold back on investing because they cannot accumulate a good amount to invest. In that case I find this DCA method quite useful. Almost universally the DCA method will work for everyone.  Anyone who wants to succeed in Bitcoin investing. So in long-term investing anyone can invest any amount in a week or month according to their ability to get success from their investment in the future.
sr. member
Activity: 364
Merit: 195
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April 05, 2024, 05:42:50 PM
DCA method is the best way to invest. If a person cannot afford to invest at once then he can increase his investment by investing in DCA method. There are many users here who don't have money to invest at once, they can invest because they don't have enough money. If all these people invest monthly or weekly using DCA method, they can all invest and get success. No matter what you want in life if you know about bitcoin I would say invest in bitcoin if you can't afford it use the method if necessary and continue your investment until you get the maximum success hope everyone gets a lot of success.
member
Activity: 66
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April 05, 2024, 05:42:03 PM
The DCA method is actually an instrument for us to do something that others think we can't do, but eventually, when it increases, it turns out to have a high value in the market.
Basically, the Dollar Cost Averaging is a way for one to practically purchase an asset that seems too big if we want to buy in a whole, it's almost the same thing as paying installmental. DCA method was coined here to fix the gap of people who practically can not afford bitcoin in a whole, or those who see it as too expensive to buy hence they buy gradually with a long term investment target in mind and at the end they finally met up with the said target of owning an asset. So you're a bit far from the truth.


DCA is also not only applicable to Bitcoin because there are also many other top cryptos on the market that can also give us big profits in the future, as long as we don't give up but instead be strong and patient.
But it's obvious that we are discussing bitcoin here, and hence the DCA method is most applicable in buying bitcoin. For other assets (altcoins) it's really not necessarily to dca into them except for a coin that has become way too expensive and non of the altcoins are too expensive, only Ethereum has a little price that seems expensive but not really. So the discussion is hanged aroun bitcoin only.
sr. member
Activity: 1274
Merit: 457
April 05, 2024, 05:25:52 PM
In my opinion investing in Bitcoin for long term DCA method will work for the beginner level to the professional. And if the trader knows the effectivity of DCA investment then I think all of them will also start there DCA investment besides there other trading. And yes of course for the beginner who have little knowledge about investment and also newbie in cryptocurrency what them dca method is the best way to invest. Most of the case it always gives the profit rather than faceing losses.
sr. member
Activity: 602
Merit: 260
April 05, 2024, 02:49:53 AM

I have come to understand and appreciate the saying that "little drops of water make a mighty ocean", the DCA method of buying Bitcoin brought me to that understanding. I have had this poor mindset of making huge profits from trading thereafter, invest part of it into Bitcoin holding as a hedge to my trading
I can actually relate to this though, having such mindset that trading would make rich quick but instead it turnup to be that opposite due to various losses encountered during my days of trading , ( though alot have made it through trading), I guessed may be was because of the half-size knowledge I had back then , but got to a point I discovered that I was not even progressing in it at all, then I came across a thread here on this forum head about some users talking about DCAing how they normally by bitcoin at different price interval consistently either monthly or weekly, then I decided to go give it a try , as time goes found out that my pregress was really showing that time around , due to the recent surge in price bitcoin as undego this past months.

To those who really helped in sharing their wealth of knowledge free of charge in this forum like @JayJuanGee, @Wind_FURY, @tranthidung and many others, you are all highly appreciated.
exactly , they where actually a big help to me too, guiding me and given me more courage to embark on long-term holding of bitcoin, back then my confidence in investing was pretty low due to various losses from various shitcoins. But now those confidence has been recovered back




legendary
Activity: 2814
Merit: 1192
April 03, 2024, 02:02:18 PM
I think you're missing the point of DCA.

DCA recognizes that we can't know what the price will be at any given time. If you lump sum buy on any given day, you don't know if the price will be higher or lower in a week. So maybe buy today and miss out on a better price a week later. With DCA you don't have to worry about trying to guess the best time to buy.

That could work assuming that from the moment you decide to buy there's exactly equal chance of bitcoin going down as of it going up, but this is not the case.
Bitcoin is a growing asset that follows the adoption curve and as long as it exists and meets the demands, it will continue to go up.
Let's not forget that bitcoin tends to follow cycles, so it's not that hard to buy bitcoin in a relative low (50% from the ATH). If you did this easy and simple thing over the years, you'd always display better results than most traders, including the ones who DCA.

Don't believe me, check how many 50% corrections there were since 2013 and do the math for any given period comparing DCA method with a 50% lump sum buy with the same capital.
You'll see that the simplest method produced far better results every time.

Quote
And with Bitcoin, since we have something that basically supercharges Bitcoin investing - the 4 year market cycle - by telling us what periods of every four years we should be buying, we can then use that to our advantage and greatly increase the returns of DCA. So we can DCA only during the lower part of each 4 year cycle, like buying starting once Bitcoin has crashed a lot, and then continuing to buy until it goes above the old ATH, and then wait for the next crash, saving money in the meantime to be able to DCA with extra funds on the next bear market.


That's not the best idea if you ask me. Let's take this year. If we followed your advice we'd be buying until the new ATH, so we'd be buying 66k -73k and now during the correction we'd be holding that at a loss, right? Now let's say it doesn't go to a real ATH and just crashes 50%, you're going to be stuck with the coins you bought using DCA since February and trying to get funds to buy more, since now it's the dip, a moment you actually should be buying, but your money is stuck in $70k bitcoin.

Quote
And with DCA, instead of guessing when to buy during a bear market , and many people would likely lump sum well before the bottom, or assume a lower price is going to come which never does and then they have to lump sum well after the bottom, DCA allows buying consistently all through the bottom.

Why not simply buy it during a correction and hold. Does it really matter that it wasn't the exact bottom? Last bear market I was heavily buying everything between 25k and 19k on the way down, as it was a good price to pay. It went lower and I did not buy because I was out of money at that point, but I still think I did better than people who caught that bottom using DCA, but were spending $100 a week instead of going all at $20k.  

Quote
DCA removes the risk of being wrong about when to lump sum buy, and of course it also means people don't have to save up a bunch of money first before buying. Lump sum buying is ONLY better if you happen to have a bunch of money at an ideal time (bear market) and you guess well enough where the bottom is to get near it.
Are you really "wrong" when you don't buy at the exact bottom? Who cares? When you DCA you also don't buy the bottom, you just make it look like you do, because buying the bottom with 1% of your capital doesn't really cut it when 99% of it does not buy the bottom. It's like running from the cops in your car 10 times and 9 out of 10 they catch you and put you in jail, but one time you run away and you feel good about it and brag to people that there was one time you managed to outsmart them Cheesy
sr. member
Activity: 224
Merit: 195
April 03, 2024, 01:01:00 AM
DCA is tested and trusted method of accumulating Bitcoins, so one can go for it without any doubts.
Definitely bro I dearly agree with you that DCA (Dollar Cost Averaging) is a "Trusted" and "Tested" strategy. You mentioned two words that are very good and perfect. The words are small, but the meaning is big. "Tested" and Trusted. DCA strategy is one of the greatest strategies for newbies and experienced players. Which prevents you from taking the biggest risk, i.e., volitility. Under the same strategy, you can save your assets from losing more by reducing volatility. 
 
DCA covers all aspects of an investment worries of not being able to buy big at once because thats the mentality for some person that actually rush into getting an investment in Bitcoin. But DCA is always there for low income investor that don't have the power of buying like a whale, the concept is that you start up small but can later end up being a whale.
DCA is absolute when it comes to strategies to deploy during making Bitcoin investment, their is aswell many good features associated with it, which you clearly listed some. DCA doesn't look if a person is financially capable or not, even those who have enough to lump aswell void the idea and decides to DCA. Most people decides to DCA because it is very difficult to assume the highest DIP to lump sum, so in the process of Dcaing, an investor can easily buy from so many DIPS which will help in balancing their portfolio. DCA takes a lot of time and years other than lump sum, which means buying more DIP as per every cycle to be witnessed, which means at some point we may get enough profits while DCAING than applying any other strategies.
sr. member
Activity: 1904
Merit: 306
April 02, 2024, 09:05:10 PM
Before now, I have underrated the DCA method just because I thought it was only meant for bitcoin. It was when I read a documentary about DCA as the most effective and stressed free way of being wealthy. I have had little/no respect for DCA but it is the most peaceable way to invest in bitcoin.

DCA is not necessary only for low income earners. It is also used by the wealthy and other experienced traders or investors when the market is not so certain.
Honestly,the DCA strategy seems to be a good investment choice for anyone that wants to accumulate wealth.There's no doubt that DCA can help one to study the accumulation of bitcoin.DCA is a long term investment plan,although,all investing involves risk, but given the crypto market’s potential for extreme volatility, you should only invest money you can afford to lose.

This attempt aims to reduce the impact of market volatility on the overall investment and allows you, as an investor to accumulate your position over time.
Many people had this particular challenge in Course of investing,meanwhile some failed and fell along the line.The most important feature is for DCA is that it faces the volatile cryptocurrency markets,and it minimizes the risks of an unfavorable investment outcomes precisely.
member
Activity: 462
Merit: 13
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April 02, 2024, 06:59:54 PM
As far as I'm concerned overall the DCA method is a much safer investment strategy as it helps compensate for large market declines and works well for investors with any level of experience. This strategy is generally best for individuals who want to hold cryptocurrency assets for an extended period of time. The main advantage of DCA is that it removes emotion from investing.
member
Activity: 994
Merit: 46
April 02, 2024, 04:36:16 PM
DCA is tested and trusted method of accumulating Bitcoins, so one can go for it without any doubts.
Definitely bro I dearly agree with you that DCA (Dollar Cost Averaging) is a "Trusted" and "Tested" strategy. You mentioned two words that are very good and perfect. The words are small, but the meaning is big. "Tested" and Trusted. DCA strategy is one of the greatest strategies for newbies and experienced players. Which prevents you from taking the biggest risk, i.e., volitility. Under the same strategy, you can save your assets from losing more by reducing volatility. 
 
DCA covers all aspects of an investment worries of not being able to buy big at once because thats the mentality for some person that actually rush into getting an investment in Bitcoin. But DCA is always there for low income investor that don't have the power of buying like a whale, the concept is that you start up small but can later end up being a whale.
There is no doubt things like these can bring huge impact on anyone and surely small investors can also gain huge profit, but we need consistency and patience as well for these all strategies which are covering good things for the small investors in this community.
After long stressful life I am also going to jump into this way and surely going to post my all experience in this journey because this is the best way for the peoples like me those were looking for the change and having nothing to do things for themselves.
hero member
Activity: 644
Merit: 520
Leading Crypto Sports Betting & Casino Platform
April 02, 2024, 03:47:37 PM
DCA is tested and trusted method of accumulating Bitcoins, so one can go for it without any doubts.
Definitely bro I dearly agree with you that DCA (Dollar Cost Averaging) is a "Trusted" and "Tested" strategy. You mentioned two words that are very good and perfect. The words are small, but the meaning is big. "Tested" and Trusted. DCA strategy is one of the greatest strategies for newbies and experienced players. Which prevents you from taking the biggest risk, i.e., volitility. Under the same strategy, you can save your assets from losing more by reducing volatility. 
 
DCA covers all aspects of an investment worries of not being able to buy big at once because thats the mentality for some person that actually rush into getting an investment in Bitcoin. But DCA is always there for low income investor that don't have the power of buying like a whale, the concept is that you start up small but can later end up being a whale.
sr. member
Activity: 854
Merit: 364
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April 02, 2024, 03:17:36 PM
DCA is tested and trusted method of accumulating Bitcoins, so one can go for it without any doubts.
Definitely bro I dearly agree with you that DCA (Dollar Cost Averaging) is a "Trusted" and "Tested" strategy. You mentioned two words that are very good and perfect. The words are small, but the meaning is big. "Tested" and Trusted. DCA strategy is one of the greatest strategies for newbies and experienced players. Which prevents you from taking the biggest risk, i.e., volitility. Under the same strategy, you can save your assets from losing more by reducing volatility. 
 
Similarly through DCA we can steady the accumulation of Bitcoin. DCA is the only strategy that provides you with an excellent investment pattern in both the bull market and bear market with minimal risk and less volatility. The best feature of DCA that every person wants is to get the opportunity to invest in Bitcoin, that is, if you did not invest in Bitcion at one point in the dip, then DCA gives you the opportunity to invest.
hero member
Activity: 2240
Merit: 848
April 02, 2024, 02:36:02 PM
Just so you know, DCA is actually inferior to lump sum buying because you're minimizing the potential loss (temporary) at the cost of potential profit. If you DCA over the course of a month, buying 4 times instead of once on the first of each month, if the price goes up within that month you will not only make less money in fiat terms, but also end up owning less bitcoin because it will become more expensive.

DCA is only for people who can't afford lump sum buying, it's not a method of maximizing your gains, or the amount of bitcoin you can hold. It's good for a bear market, but not so much when the market is stable or goes up.


I think you're missing the point of DCA.

DCA recognizes that we can't know what the price will be at any given time. If you lump sum buy on any given day, you don't know if the price will be higher or lower in a week. So maybe buy today and miss out on a better price a week later. With DCA you don't have to worry about trying to guess the best time to buy.

And with Bitcoin, since we have something that basically supercharges Bitcoin investing - the 4 year market cycle - by telling us what periods of every four years we should be buying, we can then use that to our advantage and greatly increase the returns of DCA. So we can DCA only during the lower part of each 4 year cycle, like buying starting once Bitcoin has crashed a lot, and then continuing to buy until it goes above the old ATH, and then wait for the next crash, saving money in the meantime to be able to DCA with extra funds on the next bear market. And with DCA, instead of guessing when to buy during a bear market , and many people would likely lump sum well before the bottom, or assume a lower price is going to come which never does and then they have to lump sum well after the bottom, DCA allows buying consistently all through the bottom.

DCA removes the risk of being wrong about when to lump sum buy, and of course it also means people don't have to save up a bunch of money first before buying. Lump sum buying is ONLY better if you happen to have a bunch of money at an ideal time (bear market) and you guess well enough where the bottom is to get near it.

Getting lucky is not an investment strategy. DCA is the superior investment strategy that decreases risk, can be used strategically with Bitcoin to increase profits over a generic DCA, and is more likely to beat out lump sum buying for many people because of that less risk and timing the market with luck (guessing) not being an important part of DCA.
hero member
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April 02, 2024, 02:07:21 PM
DCA method is one of the most applied methods. An investor does not need to make much effort to learn and apply this method. The DCA method allows making a continuous and regular investment with a simple method.

Many factors such as volatility and negative news in the market can push investors away from the market. An investor who decides to apply the DCA method may ignore these negative factors in the market.
People who have a much better financial structure even use the DCA strategy to buy bitcoin and this aims to enable them to enter the market regularly according to the time they determine. Investors have their own styles and methods when they want to buy bitcoin, but if you look at it, most people on this forum specifically apply the DCA strategy. The issue of volatility and negative news is something that often occurs in the Bitcoin journey and investors probably already understand it very well.

In fact, using the DCA pattern we can create a steady accumulation even though negative news continues to appear and when bitcoin is hit at a much higher price then we can use other methods to buy bitcoin in much larger amounts. For example, using reserve funds that we deliberately save for certain needs and that can be used to buy bitcoin in those conditions.
legendary
Activity: 2814
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April 02, 2024, 12:49:12 PM
Just so you know, DCA is actually inferior to lump sum buying because you're minimizing the potential loss (temporary) at the cost of potential profit. If you DCA over the course of a month, buying 4 times instead of once on the first of each month, if the price goes up within that month you will not only make less money in fiat terms, but also end up owning less bitcoin because it will become more expensive.

DCA is only for people who can't afford lump sum buying, it's not a method of maximizing your gains, or the amount of bitcoin you can hold. It's good for a bear market, but not so much when the market is stable or goes up.
newbie
Activity: 10
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April 02, 2024, 10:05:40 AM
#99
I feel this topic is targeted to me. I have heard of Bitcoin ever since 2014, but perceptions surrounding the innovation of Bitcoin made it so skeptical to ponder on. A friend who introduced it to me insisted I deposit $100 before I be part of the great deal. I couldn't afford it. I was so naive didn't blame myself for my clumsiness towards it. Not untill early this year 2024 I came across this forum, despite I was deprived from comments I learnt of DCA, made little research which later killed the boy in me for the man to be born. I summoned some courage, I got some quantity of Bitcoin I could, one which I can afford to lose. Bump I watch my money grow, at subsequent times, I purchased much coins. My 10 year long awaited dreams came to pass in this forum.

I'd love to post screenshots of my purchases this year to solidify my proof, but I find it very difficult to do. Hoping to master the forum fully in subsequent times.
 
hero member
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April 02, 2024, 09:21:41 AM
#98
People who keep on missing bitcoin opportunities are probably not aware about DCA. Or they really are aware but the fear to take the risk is high because they have no substantial amount of knowledge in the first place. I have been fearing bitcoin investment way back then and so I end up procrastinating most often, but I realized I won’t achieve something if I keep doing the same thing and keep the same attitude.

Thankful to have learned about DCA. That idea lessen my fear and started taking small steps in bitcoin investment. Now, from a humble beginning, I can say that I am hodling a good amount of bitcoin already. DCA is the key, and of course having a good mindset and a positive attitude towards bitcoin is also a great factor for success.

The real advantage of the DCA is that you will never miss out on a train if it leaves the station. The reason is that you will buy the bitcoin at the current price with some percentage of your portfolio. Now if the price pumps, you always have the bitcoin with you and you will never regret that you did not buy in the first place.
In the opposite scenario, if the bitcoin price dumps, it will give you an opportunity to buy more at a cheaper price and buy more if it dumps more. This way you will have a good cheaper average bitcoin buying price. For sure, you need to hold these bitcoin accumulations till the time you know that bitcoin is near the peak of the bull cycle and you may sell in parts too during that time period.

The DCA can be done not only with Bitcoin but with any cryptocurrencies however keep in mind that the project should be a good one in which you do the DCA other you will keep holding the bag of that coin if it's a scam coin and may never pump again.
DCA is your failsafe in bull and bear markets. This genius keeps you in the game, no FOMO. Price rises, great. Price drops? Nice, more Bitcoin on sale. Everybody wins.
Yes, that's interesting and I do not know anyone who participated in the DCA method in an investment that still regrets it if done correctly. Only that the person may not earn huge money as though he invested once in an asset that appreciated significantly immediately, just as it would avoid huge losses if happened in the opposite. This approach is practical and I love the FOMO remark you added, surely, this will remove the FOMO from the minds of investors and make such investors act rightly after carefully thinking the investment through. This is patience and once there is nothing like FOMO, the stress of divesting so fast in case of depression or FUD would be greatly reduced or eliminated.

And really, in this kind of approach, everybody wins, but we should still neglect the fact that everybody can win if everybody DCA very well. There are right times to DCA even if we can do it in both the bullish and bearish markets, it is best we start at a reasonable price. If the asset is too expensive, we should avoid it no matter what we think of DCA. Many people were misled to continue investing when Bitcoin was over $65,000 in the last bull run, not even the DCA approach can save a person in this kind of situation. Let's use it right!
sr. member
Activity: 434
Merit: 253
Trust the process, imbibe consistency
April 02, 2024, 07:49:25 AM
#97
I agree with you and I can't stress the importance of employing techniques like Dollar Cost Averaging (DCA) to build your investment in bitcoin. I have been in the cryptocurrency scene since September 2014, so nearing 10 years soon and there has been many years where I didn't touch Bitcoin at all. I watched the price increase to $1000, $10,000, $25,000 and $50,000 thinking every time that I couldn't afford to buy a whole Bitcoin.
Many people had this problem at some point in their Bitcoin investment process and some followed your path while others were able to break that procrastination and invested in Bitcoin. Even till date there are still people that are saying that Bitcoin have gone too high therefore not too safe or profitable to invest in again, instead they go for other low cap coins and often lose their money looking for fast and big profits. Maybe it is a natural greed in people that they learn to put under control from terrible experiences such as can be caused by huge losses.

There was also a lot of paralysis and fear, "what if the price goes down tomorrow, and I can get more Bitcoin for the same amount?".
People who express this fear of price going down are not much that use the DCA method. They are mostly traders that monitor the market for short term investment and quick gains. The DCA method seems to make one think long term because the period it will take an investor to accumulate sizeable amount of Bitcoin, up to his target, might be long and within this period the investor is thinking more buys than sell.
full member
Activity: 2520
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April 02, 2024, 05:38:40 AM
#96

 I have been in the cryptocurrency scene since September 2014, so nearing 10 years soon and there has been many years where I didn't touch Bitcoin at all.


Many regrets having been exposed to crypto early on but not doing anything about it. Especially when you compare the price now to back then when it was a lot cheaper to buy and own 1 bitcoin.

This is why I prefer crypto as an investment compared to others. It is much accessible and you can buy in small amounts.

I just hope that you decided to do the DCA method not long after 2014.
legendary
Activity: 2044
Merit: 1018
Not your keys, not your coins!
April 02, 2024, 05:32:16 AM
#95
Investing in DCA method always increases the willingness to invest and helps in raising funds. You start collecting bitcoins regularly with DCA method and surely you will get success. But whenever you are deprived of the regular DCA procedure, and may lose your hold. So you can safely add long term investment in DC method surely you can accumulate more bitcoins.
You invest in Bitcoin or altcoins, not invest in DCA method.

DCA is a method for you and other investors to make investment plan and how to spend capital for investment to reduce risk and maximize profit. DCA is a helpful method for all investors because it brings many good things.

No need to find top or bottom of market. Don't have to spend too much time to watch the market, price chart. An investor with DCA method can simply work to get money, use part of it as investment capital, then DCA for Bitcoin accumulation with time.

To exit, take profit, see this.

[ANN] JJG Sustainable Bitcoin Withdrawal Strategy
https://bitcoindata.science/withdrawal-strategy
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