Topic: Should I do a one off buy or spread the buy out? - page 3. (Read 6387 times)
The problem doesn't start when you buy bitcoins but when you own them as an asset and everyday you check its price.The first rule of trading is Act Fast,the time taken to analyzie the market or making a decision could be used to profit from the early actions.The rule is simple : Study the market for a week,check the upper bounds and the lower bounds ,you can get a rough price estimate what is the lowest it could fall ,once hit the price again,buy them.For short term trading,in the same week you have idea about the upper bounds as well,resell them.
I wouldnt put all my money into just bitcoin. Its good to diversify and maybe buy some gold? But personally
I like to buy on dips (I bought $40 worth when it dropped to $410) so I just play it by ear and add on
dips
I like to buy on dips (I bought $40 worth when it dropped to $410) so I just play it by ear and add on
dips
Yeah it's kind of lunatic to go "All bitcoin". Sure you can invest like 50% into this great coin, but all?
Try to diversify like this
50% stocks
50% crypto
Then 40% bitcoin and 10% altcoins
I suggest spread it out. Do you remember the days of 1 BTC = $1,200?
If the price will go up a lot in short term, then it is better to buy now. But we will never know. So it is to spread the buy.
I wouldnt put all my money into just bitcoin. Its good to diversify and maybe buy some gold? But personally
I like to buy on dips (I bought $40 worth when it dropped to $410) so I just play it by ear and add on
dips
I like to buy on dips (I bought $40 worth when it dropped to $410) so I just play it by ear and add on
dips
I suggest spread it out. Do you remember the days of 1 BTC = $1,200?
As most of people here, I agree that spreading out the purchase is usually a better strategy.
It doesn't cost any more in commission, because almost all the exchanges are charging a percentage fee, whether you buy 1 or 100 btc.
It might work out cheaper to transfer the funds to the exchange all at once - depends on the fees your bank is charging.
How much you should spread it out also depends on how liquid is the exchange you have chosen.
Some exchanges have lower fees if you put in the limit order, rather than just lift the best offer - if you are not in rush, I advise you do that.
Spreading out the purchase via "dollar-cost averaging" is good if you want to buy over a period of time, but if you have money to spend now, it is better to buy all at once now, rather than waiting while the price goes up.It doesn't cost any more in commission, because almost all the exchanges are charging a percentage fee, whether you buy 1 or 100 btc.
It might work out cheaper to transfer the funds to the exchange all at once - depends on the fees your bank is charging.
How much you should spread it out also depends on how liquid is the exchange you have chosen.
Some exchanges have lower fees if you put in the limit order, rather than just lift the best offer - if you are not in rush, I advise you do that.
1. The point of dollar-cost-averaging is to avoid trying to time the market. That's why you buy fixed amounts at fixed times. The point is not to reduce risk. There is a more effective way to reduce risk: diversification.
2. You do have a clue (or at least you think you do) about which way the market is going. Otherwise, why would you be buying bitcoins? If you believe that the price is going up, then obviously the longer you wait to buy, the less you will make.
The prices of assets (stocks, real-estate, currencies) tend to move in a non-linear way: most of the time it is not just up, up, up (or down, down, down) every day.
Even if there is a longer-term trend in either direction, the prices usually oscillate around that trend - up one day, down next day and so on.
Split your purchases if you are expecting price shift. I usually split my assets into parts, create 2 or 3 sections and the buy in time interval of 1, 2 days.
But I feel it is more to diminish loses of price crash, if you are fine with the current value then buy it right away.
But I feel it is more to diminish loses of price crash, if you are fine with the current value then buy it right away.
Bitcoin price not constant one It will change day by day But in past few weeks Bitcoin price is in raising face. He can buy a bitcoin in the time of Christmas that means on 25th DEC. So many speculators also predicting price range on that will be high. Just wait for days and buy.
1) When focusing down to buying into one 'stock', timing the market is the main risk. The whole point of dollar-cost-averaging (When you already have the cash as OP stated)is to avoid the risk of a bad entry time. Of course, if you don't have the money up front it is used as a way to slow accumulate wealth.
The way to reduce risk is through diversification of assets. Look at it from an asset allocation perspective. Initially you are 100% cash, then you are 90% cash, then you are 80% cash, ... Why sit on all that cash? Just reallocate it and be done with it.
Diversification is the best way to reduce risk, yes. I just think dollar-cost averaging is another way to reduce risk.
As I said before, the reason you want to sit on some cash is because the fear of entering at a high point. If someone bought $1,400 of BTC back when it was at the peak, they would have 1 bitcoin. If they waited until it dropped to sub $300, they could have about 4 with the same amount of money. Take that ahead 10 years where BTC is worth maybe $10,000. Thats a 30k difference because of a few months of buying. Do you not agree that fundamentally speaking that is a risk? In the general stock market where a big swing is 5%, it doesn't matter to much. But when you can double or half you money in a month it is a whole different ball game.
Spread it out. Buy 20% each week. Then you'll be more able to use a sudden price drop in your advantage. That's the best manner do spread your investment. I do the same.
As far as Bitcoin is concerned that's just another can of worms, but I can easily say those who put entities such as banks that are mostly responsible for terrible economies worldwide should have their heads checked as well. The last time I checked... Bitcoin isn't hurting anyoneHuh? What are you talking about? I either don't understand what you try to explain, or you are just saying something that doesn't make sense.
Split your purchases if you are expecting price shift. I usually split my assets into parts, create 2 or 3 sections and the buy in time interval of 1, 2 days.
But I feel it is more to diminish loses of price crash, if you are fine with the current value then buy it right away.
But I feel it is more to diminish loses of price crash, if you are fine with the current value then buy it right away.
Spread it out. Buy 20% each week. Then you'll be more able to use a sudden price drop in your advantage. That's the best manner do spread your investment. I do the same.
As far as Bitcoin is concerned that's just another can of worms, but I can easily say those who put entities such as banks that are mostly responsible for terrible economies worldwide should have their heads checked as well. The last time I checked... Bitcoin isn't hurting anyone
you will get many suggestion but i will recommend to go with split percentage of your buying limit, it means what ever amount you are going to invest split it into 25% ratio and buy, if you want to hold long term then this option will work out, splitting your buying amount in 25% and buy on every dip and average your buying price of bitcoin, then wait for your target.
Spreading out the purchase via "dollar-cost averaging" is good if you want to buy over a period of time, but if you have money to spend now, it is better to buy all at once now, rather than waiting while the price goes up.
I think your missing the point of dollar-cost averaging though... the whole idea is that you have literally no clue if the price is going up or down, so you spread the risk over days. If we knew 100% market was going up of course dollar-cost averaging is not as good. With commissions being % based, it eliminates the barrier to entry that dollar-cost averaging usually entails2. You do have a clue (or at least you think you do) about which way the market is going. Otherwise, why would you be buying bitcoins? If you believe that the price is going up, then obviously the longer you wait to buy, the less you will make.
The way to reduce risk is through diversification of assets. Look at it from an asset allocation perspective. Initially you are 100% cash, then you are 90% cash, then you are 80% cash, ... Why sit on all that cash? Just reallocate it and be done with it.
Spreading out the purchase via "dollar-cost averaging" is good if you want to buy over a period of time, but if you have money to spend now, it is better to buy all at once now, rather than waiting while the price goes up.
I think your missing the point of dollar-cost averaging though... the whole idea is that you have literally no clue if the price is going up or down, so you spread the risk over days. If we knew 100% market was going up of course dollar-cost averaging is not as good. With commissions being % based, it eliminates the barrier to entry that dollar-cost averaging usually entails1. The point of dollar-cost-averaging is to avoid trying to time the market. That's why you buy fixed amounts at fixed times. The point is not to reduce risk. There is a more effective way to reduce risk: diversification.
2. You do have a clue (or at least you think you do) about which way the market is going. Otherwise, why would you be buying bitcoins? If you believe that the price is going up, then obviously the longer you wait to buy, the less you will make.
But I guess what I don't get from your post is that if your trying to avoid timing the market, what for other than the risk that you picked a bad time? there is no other benefit from buying over a period of time IF you have the money now...
Spreading out the purchase via "dollar-cost averaging" is good if you want to buy over a period of time, but if you have money to spend now, it is better to buy all at once now, rather than waiting while the price goes up.
I think your missing the point of dollar-cost averaging though... the whole idea is that you have literally no clue if the price is going up or down, so you spread the risk over days. If we knew 100% market was going up of course dollar-cost averaging is not as good. With commissions being % based, it eliminates the barrier to entry that dollar-cost averaging usually entails1. The point of dollar-cost-averaging is to avoid trying to time the market. That's why you buy fixed amounts at fixed times. The point is not to reduce risk. There is a more effective way to reduce risk: diversification.
2. You do have a clue (or at least you think you do) about which way the market is going. Otherwise, why would you be buying bitcoins? If you believe that the price is going up, then obviously the longer you wait to buy, the less you will make.
1) When focusing down to buying into one 'stock', timing the market is the main risk. The whole point of dollar-cost-averaging (When you already have the cash as OP stated)is to avoid the risk of a bad entry time. Of course, if you don't have the money up front it is used as a way to slow accumulate wealth.
2) Of course buying bitcoin in the long run you are assuming a rise, but I meant short term. Lets say you bought 9 coins when it was near $500 a month ago. Just now you would be about breaking even. But if you bought 3 before then, 3 at 500, and 3 after, your average may be only 350. Where you then already made money, because in the immediate term you negated the risk of poor entry time.
In a larger scale, what if you were someone who has bought 1 bitcoin every month over the last 2 years versus someone who bought 24 bitcoins when they were $1400 a piece. Again, even if in a year the price is 2000 a coin, the person who dollar cost averaged will be alot happier because his average price is lower. thus reducing the "risk" of a poor entry time. I mean in OP's scenario it's not like buying it over time would give him any benefit outside of that
Sorry to intrude...
Spread it out. Buy 20% each week. Then you'll be more able to use a sudden price drop in your advantage. That's the best manner do spread your investment. I do the same.
As most of people here, I agree that spreading out the purchase is usually a better strategy.
It doesn't cost any more in commission, because almost all the exchanges are charging a percentage fee, whether you buy 1 or 100 btc.
It might work out cheaper to transfer the funds to the exchange all at once - depends on the fees your bank is charging.
How much you should spread it out also depends on how liquid is the exchange you have chosen.
Some exchanges have lower fees if you put in the limit order, rather than just lift the best offer - if you are not in rush, I advise you do that.
Spreading out the purchase via "dollar-cost averaging" is good if you want to buy over a period of time, but if you have money to spend now, it is better to buy all at once now, rather than waiting while the price goes up.It doesn't cost any more in commission, because almost all the exchanges are charging a percentage fee, whether you buy 1 or 100 btc.
It might work out cheaper to transfer the funds to the exchange all at once - depends on the fees your bank is charging.
How much you should spread it out also depends on how liquid is the exchange you have chosen.
Some exchanges have lower fees if you put in the limit order, rather than just lift the best offer - if you are not in rush, I advise you do that.
1. The point of dollar-cost-averaging is to avoid trying to time the market. That's why you buy fixed amounts at fixed times. The point is not to reduce risk. There is a more effective way to reduce risk: diversification.
2. You do have a clue (or at least you think you do) about which way the market is going. Otherwise, why would you be buying bitcoins? If you believe that the price is going up, then obviously the longer you wait to buy, the less you will make.
Best is to never buy with all your money in one time. Do it 50% now, and wait what will happen. If the price goes down more, then you can decide to buy more if you want. If it goes up, then you can enjoy your profits 
I buy bitcoin whenever I have spare money. It is not one off. I hope to spread the risk. If the price rises eventually. I will earn some money.
As most of people here, I agree that spreading out the purchase is usually a better strategy.
It doesn't cost any more in commission, because almost all the exchanges are charging a percentage fee, whether you buy 1 or 100 btc.
It might work out cheaper to transfer the funds to the exchange all at once - depends on the fees your bank is charging.
How much you should spread it out also depends on how liquid is the exchange you have chosen.
Some exchanges have lower fees if you put in the limit order, rather than just lift the best offer - if you are not in rush, I advise you do that.
It doesn't cost any more in commission, because almost all the exchanges are charging a percentage fee, whether you buy 1 or 100 btc.
It might work out cheaper to transfer the funds to the exchange all at once - depends on the fees your bank is charging.
How much you should spread it out also depends on how liquid is the exchange you have chosen.
Some exchanges have lower fees if you put in the limit order, rather than just lift the best offer - if you are not in rush, I advise you do that.
Spreading out the purchase via "dollar-cost averaging" is good if you want to buy over a period of time, but if you have money to spend now, it is better to buy all at once now, rather than waiting while the price goes up.
I think your missing the point of dollar-cost averaging though... the whole idea is that you have literally no clue if the price is going up or down, so you spread the risk over days. If we knew 100% market was going up of course dollar-cost averaging is not as good. With commissions being % based, it eliminates the barrier to entry that dollar-cost averaging usually entails
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