Topic: What DCA(Dollar Cost Average) does for you (Read 368 times)

No problem and I also did not consider the fact that each year if have 12 months it does not mean one month will always be 4 week (28 days) as there are 2 or 3 extra days always there so yeah 52 weeks is a good number for 1 year and I plan to invest till next ATH which probably be 4 years long cycle.

1 year if have 52 weeks then 4 years will have 208 weeks and a weekly investment of $100 (which is impossible for me because I live in middle east) I will have more than 20800 worth of BTC right?

But yeah I think if I were able to save $100 per week then maybe in 2 years I would save $10k but I just know that's not possible for me at the moment as I also don't join gambling projects so other projects are so rare like the one I am joining now therefore I won't depend on these side jobs to make $100 per week that's why I mentioned in the first place I have to find a good job or side income source.

Whenever you decide to do Dollar Cost averaging you should consider the times when the fees are low. This is one aspect of this conversation that is not talked about a lot. And I know the community wants to make DCA as simple as it can be but what to do when the fees are high but you still have to DCA.

Assuming that transaction fees are always low then DCAing every other week is ideal if your investment money is small. DCAing every other week is not ideal if the transaction fees are high and the investment money is small like say $50. In this case either fortnightly or monthly is ideal.

It is my typo. 2 years equal to 24 months, not 48 months.

And in fact you will have to invest somewhere between $90 to $100 weekly in 24 months. Each year has more than 48 weeks, it's actually 52 weeks. Perhaps when I typed that post, I confused between weeks and months like I thought of weeks but then typing 48 as months, I am sorry.

If you invest $100 weekly in 48 weeks, total invested capital is $9,600.
If you invest $100 weekly in 52 weeks, total invested capital is $10,400.

With that tool, you can try to see DCA effect for your capital with duration in a bear market and in a bull market.

DCA is a strategy where you can start your investment with a small amount of money. Also, if you are not very experienced in investing then this strategy is considered best for you as your investment will grow with time and your experience will also increase. As DCA strategy can be started with very small amount of money, now all professional people are suitable to invest in this method.

The investor should have a fixed source of funds to invest in this method so that he can continue to invest comfortably regardless of the investment.

Dollar Cost Averaging (DCA) this investment strategy is suitable for everyone. Moreover, DCA is an investment strategy that is applicable for all market periods and not just for bearish seasons. The main objective of investing in DCA (Dollar cost Averaging) strategy is to reduce the average cost of your investment i.e. your average cost will remain the same regardless of whether you buy bitcoins at any moment of the market for investment.

For example, if you take the initiative to buy $40 worth of Bitcoins on a weekly or monthly basis, then if the price of Bitcoin rises, you can buy a smaller amount of Bitcoins at that price, and if the price of Bitcoins falls, you can buy more Bitcoins with the same amount of money. Your average cost of investment will remain the same whether the market is up or down.

Yes you are right Dollar cost averaging is smart way for people investing in cryptocurrencies to increase their holdings. It involves regularly buying coins no matter market is going up or down. For this purpose investors should be disciplined patient and financially strong and secure. This helps reduce risks and achieve long term growth. Beginners should learn about this good strategy and they should have kept in mind that they have enough money and set clear goals before starting. With doing so they can earn extra money without actively working for it and navigate the complex cryptocurrency market with confidence.

Not for everyone doesn't want to do it since maybe people have difference preference the way how they approach their investment and what they want to happen on it. But for those people want to use it and eager to get the best result for their investment then provably its for everyone doing thinking about doing that. Since there's really no need to do technical matters and we just need to act consistently on doing this method also our accumulation. There's nothing much to think about since our only main concern is to accumulate and hold our bitcoin for long time.

This is what those short term thinker people since maybe they think that bitcoin trading is the best option for them and provably that later on they provably realize that somehow they are losing to much on those trades they made.

The DCA strategy is a good strategy for accumulating bitcoin for long-term purposes. With the DCA strategy, you will eliminate the stress of trying to figure out when it is best to buy bitcoin, which could cause you emotional damage if you buy bitcoin at a high price. The DCA strategy allows investors to buy bitcoin even if it is increasing or decreasing since they know they will be buying bitcoin at different prices either on a weekly or monthly basis. One of the benefits of the DCA strategy is that it allows investors to control their emotions when they are accumulating bitcoin.

I will prefer using money that you will not be needing for 4-10 years or more to invest in bitcoin so that you will not depend on your bitcoin investment to sort out your daily expenses.

Here it goes for me.

I am no economy, investment and finance expert.

But with this strategy, it made me look like I am a genius because of the results that it has gotten me.

I was able to beat those financial guru friends that I have and it does look simple at all but DCA isn't for everyone that are not willing to learn and become consistent with it.

Not always, there are times when buying at once would have been a better options as you get more quantities of Bitcoin during this time than DCA. I don't denied the facts that DCA is the best strategy for investing in Bitcoin but when you see the opportunity to buy the bottom of the market, don't miss it but take it with full effort.

Also you have to know yourself because it isn't everybody that can stay true to DCA and not use up the money for something different. Know yourself and know how good you're with money and following your plans before you start to DCA.

For some people, it's just better they buy Bitcoin once and hodl (especially for people with very long term plans of holding for 10yrs+.) buying Bitcoin that very moment and just hodling would be advisable.

You’re right it’s simply looks like trading but it is still DCA because you’re still catching trades at different levels and accumulating them and at the end is still averaging so it’s still DCA but not the regular usual DCA. The only difference is that one needs the knowledge of fundamentals and most importantly that of technical analysis to analyze the chart. Just like you said it is not necessary to have it but sticking to the timeframe buy is ok. But regardless no knowledge is actually a waste.

A smart DCA by reading of the chart is a double edged to get more proportions imagine looking at the charts and seeing the coin at a low and you are predicting that it will bounce back from that low later before your next manual DCA accumulation period, this knowledge will help you to buy more at lower price than the manual one, the only disadvantage is don’t use it alone if not you will miss some lows while waiting for further dip, use the usual manual method and accumulate more when the chart shows a good dip

I know the DCA plan is possible, that's why I targeted for $10k and thanks a lot for providing these sources but I did not understand how you calculated that if I will invest $100 every week for the next 48 months and let's say each month have 4 weeks so 48*4=192 Weeks and each week investment is if $100 then its 19,200$ not $100 the website you provided is a good source I also spent good time on this site but see it allows us to calculate our past, like if we would have bought in 2021 and after three years how much we would be making now.

It's just a good calculator to help us understand will doing Lump Sum in 2021 or DCA from 2021 to now, which would be more profitable.

But still thanks for encouraging, to make $10,000 I have to do a DCA on weekly basis of 48$ for the next 4 years (48 month) hmm I think I can do DCA of $48 for every week I just have to find another source of income that can make me 192 a month. I know with time my profits will help me to reach $10k but I think I should not count them.

Investing using the DCA strategy is just convenient for those who are not experts in analysing the market. That is why newbies especially are advised to use the DCA strategy where they can conveniently  invest without mounting so much pressure on themselves and they would still be able to manage their risks effectively.  This does not mean that the DCA strategy is not without it's own challenges. However, what matters most here is the ease of investing.

Those who on the other hand wish to buy lump sum at once are not in any way making a stupid investment decision. They must have understood the risks involved in buying lump sums and would even be earning more returns if they are able to perfectly time the the market.

Some can decide to use the hybrid strategy where they make an initial huge purchase and keep adding up in small amounts using the DCA strategy.  Whatever strategy one intends to use will depend on their experience and risk tolerance.

Buying at ago is not a bad thing, because at a point you will also learn to know that DCA is not only the strategy to accumulate bitcoin. You will still come across lump sum and buying the dip. So in this case lump sum could be said to be an extra amount or bonus a person or an investor received from may be a place of work or a money won from lottery which is used to buy bitcoin at once or at ago. So this kind of money invested are usually not for buying bitcoin at each dip or DCA. so In this case it can't be classified as running a risk of buying high as you said . because it was not for the purpose of Trading nore dip nore DCA, but just to buy and stack for future propose and not for imidiate use. When you think of lump sum think of an amount that will not be needed anytime soon just like the DCA accumulation amount is for a longer time which makes both appears to be one despite it comes in different ways.

DCA strategy is not a strategy to buy more bitcoin when the price is low and or buy less when the price is high. It is the buying of business regularly either every week or every month at any price of bitcoin. But although Buying each dip is a strategy to buy bitcoin when its dip, to leverage on the opportunity to accumulate more or to recover the amount lost when you may have bought bitcoin high during the DCA.

100million SATs makes up 1bitcoin or you can say 1BTC is equal to 100million SATs

If you continue to stack sats for a long period, your small weekly or monthly purchases can grow into a large sum of bitcoin savings.

Crypto is always use to describe shitcoin or altcoins, it will be better you preferably use the bitcoin as people don't accumulate shitcoin.

DCA is the best solution in Bitcoin investment, especially for Newbies, to reduce the impact of price fluctuations traded in the market by buying at varying average prices. In addition, the DCA strategy can help investors reduce psychological risks by avoiding counterproductive decisions due to greed or fear in investing. Newbie investors also do not need large capital to start investing because what is needed with this strategy is consistency. They can also build investment habits with small capital without having to wait for the right time, as long as they have capital ready to be used for investment, it can be done at any time, DCA can also reduce the risk of Volatility.

the DCA is an anti procrastinators methord that helps you buy Bitcoin without giving excuses of Bitcoin being at a certain value and that's why you are not able to buy. It's an approach for those who are ready to start small and do it consistently for a number of years untill they've achieved a particular number of accumulated Bitcoin in Thier wallet. It doesn't guarantee that you will always buy at a cheaper rate and in most instances, the likelihood of you buying at an high price might be much but doing it for multiple circle will place you above the range of prices you started accumilating the Bitcoin.

One thing I've learned about the method of DCA is that it takes away the idea that owning Bitcoin is for the rich or that you have to buy upto one whole Bitcoin or at least half of Bitcoin at a time before you consider yourself a Bitcoinner. It allows both the old, new and even the whales to buy Bitcoin routinely through that methord.

Dollar Cost Averaging is in my opinion the only Investing strategy that fits everybody.  If you do not have the time to do research about the Market, this is the solution.  If you have the time but feel overwhelmed by the information, this is the solution.  If you feel like you are late and do not know where to start, this is the solution.  I can not think of any scenario where Dollar Cost Averaging hurts your Portfolio, except if you are looking to day trade or make large quick Profits.

Is Smart DCA not Trading though?  It looks like it to me.  As far as I know at least, the point of doing Dollar Cost Average is precisely not requiring any knowledge about the Markets and simply purchasing Bitcoin every now and then with out caring about what the Price is at the time.  If you do Dollar Cost Average by researching Charts and Markets, that to me is just Trading.  But I may be well wrong.

Dollar Cost Average aka. DCA is a strategy that is applicable and efficient for all market phases, not only restricted for practice in bear market. You can do simple traditional DCA or Smart DCA but they are all working well for your portfolio if you are an investor with holding strategy for a long time.

It's more simpler to use DCA (traditional DCA), because smart DCA requires you to be an experienced investor with deep understanding about the market.
DCA vs Smart DCA, what do you choose?

Saying DCA can be used only for a bear market, is wrong.

Dollar cost average is a strategy some investors use to grow their Bitcoin and cryptocurrency in their portfolio by continue purchasing Bitcoin and cryptocurrency in the bearish season and hold for a long term to fulfill the purpose of holding the coins in their portfolio. Dollar cost average strategy, it will make you to be bold in accumulating your coins in the bearish season or bullish season, because the investors using that strategy know that they are not selling the coins in a low price, because they have a positive target to catch up with in the nearest future. It will increase your income when you know how to use the dollar cost average strategy very well,  because many investors use it for income purposes but as a newbie, i will advice you to have the knowledge and to be financial buoyant before making use of the dollar cost average method to accumulate Bitcoin and cryptocurrency.

Bitcoin's Market cycle can help you to plan your DCA in a next bear market.
Bitcoin price history by years.

Assume that you have two years of bear market or a little bit longer or shorter, here we count 48 months for making a DCA plan. Now with this assumption of bear market length, let's see your capital for DCA is $10,000.

It will require you to do DCA weekly with $100 each week and do it regularly in 48 months.
https://dcabtc.com?sd=2021-11-01&sda=3_years&f=weekly&d=2_years&ac=10000&c=false

You can do it with your signature campaign in bitcoin forum and with part of your salary, so I really see this DCA plan is possible.