Topic: Question on how to buy bitcoin & on dex exchanges (Read 199 times)

You already lose a lot and now you will shift to Bitcoin all your altcoin while the current price is at the bottom? I’m a pro Bitcoin but I’m just questioning your trading logic because if I’m with your situation, I will just hold that altcoins since the only way to recover your loss is for your altcoin to grow again while investing on Bitcoin doesn’t guarantee that it will grow on a percentage equals to the percentage loss of your Altcoins due to the difference of volatility.

I would invest separately on Bitcoin and leave the lose altcoins in there for a long hold if I’m on your shoe but it’s your money so what you want.



Just don’t leave your funds on the exchange is the best practice to avoid those risk. Using it temporarily for buying or selling will not gonna exposed you on great danger because they are running for a long time. Even on FTX, all the user received a warning for what’s coming on the exchange when CZ announced there decision about there FTT liquidation, FTX user is just stubborn to let there asset stay despite the brewing shitty aura few miles away.

First thing is that, I commend you for your total departure from altcoin and your will to hold more Bitcoin since Bitcoin is relatively stable in price, and also for your not wanting to trust centralized exchanges with your funds. There is no doubting the fact that having your wallet with your keys properly stored is the best possible way to have total control over your money and aside from the fact that you will need an exchange to buy bitcoin or use a p2p service to do so. But if you want to hold other coins then you will need to buy them from the exchange and thereafter transfer them into your own wallet and you are advised never to leave your coins on an exchange most especially when the amount is big.

When you are newbie, you should practice with your small capital that makes sure you have other bigger capital left for other tries later.

It is more easily to make mistakes when you are a newbie

• Do not write down seed or write it down but unusable because of inaccuracy in your writings
• Forget wallet passphrase (password) that is needed if you don't have back up with seed - without a passphrase (password), you will not be able to access your bitcoins in that wallet
• Make mistake when sending your bitcoins to uncompleted receiving address (missing one or a few characters or typos)
• Some more stupid mistakes for newbies

Noboby knows where is an absolute bottom so it is better to apply DCA (Dollar Cost Averaging)

  -  The altcoins you chose are a good dude and I can't say that the ones you invested in are wrong. Those are pure potential.

Now just to avoid the mistakes you are talking about, don't repeat the strategy you did, instead change the strategy you are doing dude. because if you repeat the same strategy you did, you will repeat the same mistake. That's the logic in your question.

Manually is best and safest, exposing your funds to exchange vulnerability and out of your custody for asnlittle time as possible.

It does not even have to be fixed amount or time. For me every 2 weeks is really good. Or a scheduled amount (every time you save 100$ for example).

You also save on fees for exchanges with less frequency but obviously the more frequent, the better your averaging.

Also explore p2p platforms like bisq. Safer, once you get the hang of it.

Do you mean to leave multiple orders active? That's not DCA. It still forces you to follow the analytical scenario and it is possible that your order won't be filled because the price doesn't exceed. Use it manually with a scheduled purchase plan (eg weekly) regardless of what price you'll get.

You can combine those two by buying now for 50% of your budget (because BTC is super oversold right now) and do DCA for the rest 50%.


If you have zero experience just stick with CEX. BUY and withdraw to cold wallet. Especially if you have fiats now, because there is no efficient, cheap, fast, decentralized fiat/crypto getaway.

If you have stablecoins and you really want to avoid CEX you can try buying btcb on pancakeswap and than use bep20 to btc bridge.

Since the dollar-cost averaging strategy's main domain is an automated purchase. Does it mean that I'm required to leave some funds active to enable the automated action take place. Or I can also carry on the strategy manually; having a particular date I come for purchase irrespective of the price?

Regardless of whether it is "fake p2p" I believe both systems work as long as you do not hodl your Bitcoin in the exchange wallet which I believe is the bigger risk here.
For the centralized exchange, I think the exchange being an intermediary is good because they help to guarantee your transaction, holding the crypto asset until you confirm receipt of funds and vice versa which I believe will not make one party unwilling to release their own end of the transaction after receiving from the other.
As for DEX, I also believe that this mechanism is built into the system too because if not, we know humans of today, once they receive payment, might not want to release assets. Personally, I have used both and have never run into any issues with either one.

Everything that has advantages also have disadvantages. We make decisions when we compare what we tend to gain or loose from an action. Lack of support team to handle specific transactions issue might be one of the disadvantage of decentralized exchanges. That's why one needs to be very careful when using decentralized exchanges for transactions because mistakes can be fatal. But you can find many manuals on several decentralized exchanges that can guide you on how to solve certain transaction issues when it occurs.

But this perceived setback cannot be compared to the risk of using centralized platforms. At least in DEX who bear the consequences of only your mistake but in CEX you have to suffer the negative outcome of the actions of yourself,  the exchange company, hackers and even the government.    

This is not a good time for you to convert from altcoins to bitcoin because bitcoin is down 80%. and your altcoins have also lost more than 90-95% of their value. But if you fear problems with your altcoin holdings then you should do it before they drop further. You can buy bitcoins on a centralized exchange and then withdraw everything to a non-custodial wallet, It doesn't affect you either.

Buying BTC through using dca is good and more convenient for investors, it aids an investor to control the volatility of BTC, and in my humble opinion it prevents naive investors from investing more than they can afford to lose in one lump sum purchase. Read more about dca in the link above.
These risks in decentralized exchanges are the same as the risk of sending BTC from your own non-custodial wallet to somebody else. If you use Binance 'fake' p2p for example, Binance in this case act as the intermediary and you hand over funds to them for the trade to be completed, that is why i call it 'fake' p2p, because there is a presence of a third party, do not think it is risk free too, there is also a possibility of a 'counterparty' risk, which may not only come from the 2nd party in the trade, but Binance themselves as they can confiscate your funds anytime and ask for more personal documents from you. A friendly reminder as well is that centralized support do not solve all the problems you run into when using their service.

---

In Decentralized exchanges there isn't any third party intermediary, you are sending funds directly to the 2nd party in the trade, that is exactly how the BTC network works, so you have to be careful and take responsibility as is expected of BTC users; before using decentralized you should read tutorials that will help you understand how to use them well. In the BTC network, lost funds are irreversible because the network does not work like a bank that is controlled by a central body, so decentralized exchanges not having a dedicated support team isn't a disadvantage because that's how the network operates, if you want to use a decentralized network and have self custody of funds do not expect too much handholding in it.

Since nobody can know if this is really the bottom of the price it could also be a good option to buy bitcoin every week/month and see if price goes up or down. Stil this is a very good rate for the bitcoin price and it is for sure not a bad starting point.
If you want to avoid loosing your bitcoins just withdraw them from the exchange the moment you buy them. With that there is a low risk of loosing your funds. You can also get a hardware wallet.

I believe It's time for a necessary transition from altcoin to Bitcoin. I've been trading and investing mostly on altcoins (Sol, Dot, Dodge, Shiba, etc) with little of BTC. But of the recent happenings on cryptocurrency which exposes the weaknesses of these lower currencies. I seek the best strategy to accumulate Bitcoin in my wallet as a long term investment, is it best to,
*Buy all  at once, as BTC is arguably at its lowest rate.
*Buy at intervals because of any possible variable.


However, in my last post I expressed my disappointment with centralized exchanges, my unwillingness to continue using them and thankfully I got suggestions mainly endorsing Bisq, of which I've taken time to look into Bisq and other decentralized exchanges and observable is the absence of a support team unlike their centralized counterpart. That be the case, what are:
1. The recurring mistakes that could lead to loss of funds?
2. How can these mistakes be avoided. Since it seems like the only remedy.