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Topic: What's your actual dca strategy? (Read 337 times)

sr. member
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September 11, 2023, 11:22:28 AM
#42
DCA means you put a fixed amount of money into buying after a certain period of time, and do it over and over. Could be days, weeks, or months. Market movements or prices won't affect your buying time or the amount that you put in. Anything except for this is not DCA.

But to solve the issue OP talked about green candles. You can sell and take profits (if your calculation leads to profits) from that investment and then analyze the market (if you are able to. Those who are doing DCA are most of the time HODLer or newbie investors who are not good at analyzing the market.) and if you see an up pattern, just HODL all till you get more profits if you feel like doing DCA you will make a loss instead of profits in that time.

But most of the people who are doing DCA never stop till the next bull run. They always target for the long run. That way no matter which price point you buy, you will still be making profits. But if you only have a target time frame like 6 or 12 months, then the market could really mess up your investment. You could make a loss instead of a profit.

So start when there's an opportunity if you feel like long term in not for you. Such as a bear market like we are facing now and so close to the next halving. This could be a great start for DCA and you can gain a good amount of profit.
sr. member
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September 11, 2023, 10:23:05 AM
#41
If you buy bitcoins using DCA it will be fine, but you must set the times. If you follow the market positions and can plan well then it will be possible to make profit. You first need to know the DCA strategies and then invest, if you set it from bear market it will be beneficial to buy. or if you invest every week then definitely invest from bear market it will be worth for you. If you want to invest in Bitcoin then you must observe these DCA strategies well and plan your investment later, it will be better.
sr. member
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September 11, 2023, 08:57:17 AM
#40
It's possible to ignore the green candles but who knows which green candle will be the beginning of the next uptrend? Be careful with your DCA strategy, I still prefer to keep buying every month no matter the market situation, either up or down your goal is long term and that's why you are even DCA in the first place, so why are you scared of green candles? Hello o we are still in a bear market isn't it?

We can't deny that some people will have less to invest than us, so everyone is free to DCA the way they feel like, to me it doesn't matter, a DCA is a DCA, the future value of what you are investing money in is what matters.

It's a complete different thing for altcoin investors, there are other things to be worried about, Bitcoin can't go to zero but altcoins can decide to fold up anytime, and when and how to DCA into alts are different, extremely unsafe.
hero member
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September 10, 2023, 02:32:12 PM
#39
DCA is just what it is, no matter how you decide to modify it in a suitable way for you. Like myself, I don't hesitate to buy Bitcoin, no matter the price. If I decide to invest $200 into Bitcoin every month or week, I always put in the money because it's my decision, and if I don't invest it, I might spend it on other things. Sometimes, if you have to wait for a dip to come first before you invest in Bitcoin, you might end up using that money before the dip could come, or the price of Bitcoin might go higher than what it is, and you will still not be able to purchase at the low price.

So, my actual DCA strategy is that I buy while I have the money and while I still can. I don't actually mind the candle; maybe the only time I would not have to buy Bitcoin is during a bull market when the price is so high.
hero member
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September 10, 2023, 09:33:51 AM
#38
~
Assuming you plan to invest for 12 months by dollar cost averaging, and you keep buying 200$ worth of bitcoin every week or month, do you know that there will be times where the market will go up rather than down? DCAing at such times are increasing your risks.
~
My initial plan when it comes to Dollar Cost Averaging is to buy on a monthly basis, but there are some limitations to it of course. One is that, I will not buy when we are in a bull market. Bear market is longer than a bull market, and I take the opportunity to buy during the bear market thru DCA. Kind of a bad strategy I guess knowing that the definition of DCA is to buy a particular asset on a weekly/monthly basis whatever happens.

Anyway, that's my strategy, and I know that we have the same strategies. That works for me, and I will continue that strategy until I'm tired of using it. Cheesy Just always remember for those who want to use DCA as their strategy that this isn't a quick rich type of strategy, or you will gain huge profit after 1 year. This strategy takes time before you reap the profits. A long term strategy that needs patience for an investor.
DCA often advises buying regardless of market conditions. It intentionally capitalizes on market movements' volatility. However, you've switched to strategy during bear markets. Bitcoin's highs and lows are typical of many assets. Bear markets offer purchasing opportunities. However, identifying bear markets effectively is key. The crypto market is fickle, and protracted downtrends can turn into bull runs. Yes, DCA requires patience. In the classic race, the tortoise goes slow and steady. Keep in mind that your DCA variation may cost you opportunities. Each investor's journey is different, but keeping informed and flexible will improve your strategy.
sr. member
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September 10, 2023, 09:23:38 AM
#37
Make the DCA strategy very simple and anyone can do it without having to make large purchases every week or month, but this strategy must be done with a strong belief that in the long term Bitcoin will increase.
And the DCA strategy that I apply is to buy Bitcoin in small amounts every month according to my ability after I prioritize all my needs, and I will also increase the amount of purchases when Bitcoin is down because this is a discount that cannot be missed, and I will also make normal purchases once the price of bitcoin rises again.
In my opinion, the strategy of purchasing DCA regularly every week or month does not require large purchases. The most important thing is that you can always try to take advantage of price drops that occur to increase purchases.


I think as an investor, the most important thing to consider is your time horizon and your exit strategy. It's not a good thing to always put your money into something that you don't know how to get in profit, don't you? That's how you get in there right? To make money! NOT just to put money aside. In the hopes that it will be 10x in the future. Maybe it will, but the market is unpredictable. What will you do if the market is tanking its price lower? Would you sell? or would you buy more? What if there is enough profit for you to get out the market? Will you still hold or you will take profit from there?
hero member
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September 10, 2023, 08:18:41 AM
#36
Monthly investment is the best frequency to some people, they advice to never delay any investment, are you one of those people? Regarding of the price action of that month?
I'm one of those people who don't advice people on how to invest Tongue. Jokes aside, your strategy is not what dca is about, you have got a different strategy there and if it is working for you, then go on with it and there's no need to change what you are doing. You are timing the market and waiting for a dip, and this is exactly what people who use dca are trying to avoid by using the strategy, with dca you don't time the market, you just buy at the regular intervals you have decided on without taking the price into consideration.
sr. member
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September 10, 2023, 07:32:11 AM
#35

There is DCAing when the market is going Up and DCAing when the market is going down, well I have been investing since last year now and my DCA on Bitcoin only happens when there is a bigger dip and so far it's my best plan yet.


I don't think that's how DCA work, or you may use the term DCA incorrectly. Dollar Cost Averaging, means that investor should invest the same amount of money consistently, regardless of the market condition. This work with high volatility assets Bitcoin included, this strategy usually used by retail investor, they usually spare some amount of their monthly income to buy Bitcoin. If you are not invest in Bitcoin on the same amount every month, or buy different amount of bitcoin based on market condition, then that's not a DCA.
hero member
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September 10, 2023, 03:35:42 AM
#34
That is also a great strategy to minimize the risk, but I don't do it all the time because we are not the same. There are situations where you need to purchase it or else you can use your money on something else, meaning it is not a force but something you must rather do, as if not, then you'll be losing your money that was intended for Bitcoin.

Buying at dips is really helpful as it increases your profit, but it really depends on the investor if he will buy at the price because for others, it doesn't matter if they buy at $30k or $20k because they are just buying in small bits and they don't want to miss the opportunity to buy it, and also, you'll be buying at a low price when there are dips, so for me, it is a win-win situation.
hero member
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September 10, 2023, 03:26:22 AM
#33
Make the DCA strategy very simple and anyone can do it without having to make large purchases every week or month, but this strategy must be done with a strong belief that in the long term Bitcoin will increase.
And the DCA strategy that I apply is to buy Bitcoin in small amounts every month according to my ability after I prioritize all my needs, and I will also increase the amount of purchases when Bitcoin is down because this is a discount that cannot be missed, and I will also make normal purchases once the price of bitcoin rises again.
In my opinion, the strategy of purchasing DCA regularly every week or month does not require large purchases. The most important thing is that you can always try to take advantage of price drops that occur to increase purchases.
We are just trying to increase the amount of bitcoin we have in our portfolio, I personally realize that I don't have enough money to make a one-time purchase during a large drop, instead I don't do that and don't do it at all, DCA is a solution for me to continue to be able to increase the bitcoin I have according to my ability as well.
I am also not unwilling to buy large amounts of bitcoin when bitcoin is experiencing a large decline, but I am aware of my abilities. Maybe if I force myself I can do it, like doing a loan, but for me it is a less wise choice to do.
member
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September 09, 2023, 11:02:52 PM
#32
The DCA system is always widely used by people who invest in crypto and so on, but of course everyone has their own way of making purchases using the DCA system. Personally, I always use the DCA system and it is similar to your strategy, namely by buying BTC when there is a decline. the price is far away, and indeed if you use the dca system and buy btc when btc is going down a lot of course the risk is not too big. I think the technique you use is very good.
hero member
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September 09, 2023, 09:45:23 PM
#31
Instead of just DCAing because you can afford that tinny amount every month well there is a risk you probably don't know about.

Assuming you plan to invest for 12 months by dollar cost averaging, and you keep buying 200$ worth of bitcoin every week or month, do you know that there will be times where the market will go up rather than down? DCAing at such times are increasing your risks.

There is a saying that, stay away from the green candles, do not chase them.

There is DCAing when the market is going Up and DCAing when the market is going down, well I have been investing since last year now and my DCA on Bitcoin only happens when there is a bigger dip and so far it's my best plan yet.

What is your own DCA strategy like? Investing based on value averaging? Dollar cost averaging? I think it's better to have some dollars awaiting your buying signal and buy the better dips.

Monthly investment is the best frequency to some people, they advice to never delay any investment, are you one of those people? Regarding of the price action of that month?
It is not as if what you are doing is wrong, however DCA is a strategy that is supposed to be as simple as possible so anyone can perform it, investing in bitcoin once a week on the same day each time is a strategy that even a five year old would understand, and that is what makes it so powerful.

And while your particular way to perform DCA could be more profitable, as you are avoiding green candles, it takes away some of the simplicity of this strategy, which may prevent people to employ DCA as they should.
sr. member
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September 09, 2023, 01:12:53 PM
#30
Assuming you plan to invest for 12 months by dollar cost averaging, and you keep buying 200$ worth of bitcoin every week or month, do you know that there will be times where the market will go up rather than down? DCAing at such times are increasing your risks.
Its seems good ideas keep accumulating bitcoin every two week purchase around $200 for investing in Bitcoin, don't looks with DCA and keep investing in Bitcoin during under $30k and your investment more profitable in the future actually with your target for 12 months later. I have unique strategy with bitcoin accumulate during still have lower values can't stopping my decision for investing and keep purchase around $200 to $300 for investing in Bitcoin.
Looks Bitcoin in the stable price right now and its best moment for investing without think what have strategy adapting. Don't make your self in the pressure position and get effective with DCA strategy more efficiency investing or accumulating in bitcoin in weekly or monthly.
sr. member
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September 09, 2023, 12:55:05 PM
#29
Make the DCA strategy very simple and anyone can do it without having to make large purchases every week or month, but this strategy must be done with a strong belief that in the long term Bitcoin will increase.
And the DCA strategy that I apply is to buy Bitcoin in small amounts every month according to my ability after I prioritize all my needs, and I will also increase the amount of purchases when Bitcoin is down because this is a discount that cannot be missed, and I will also make normal purchases once the price of bitcoin rises again.
In my opinion, the strategy of purchasing DCA regularly every week or month does not require large purchases. The most important thing is that you can always try to take advantage of price drops that occur to increase purchases.
hero member
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September 09, 2023, 12:29:10 PM
#28
Instead of just DCAing because you can afford that tinny amount every month well there is a risk you probably don't know about.

Assuming you plan to invest for 12 months by dollar cost averaging, and you keep buying 200$ worth of bitcoin every week or month, do you know that there will be times where the market will go up rather than down? DCAing at such times are increasing your risks.
Totally agree with you, which is why I think DCAing with crypto should have a different approach and factor in aspect of risk!
Am sure many will say that without following the investment plan it might not be called DCAing, but to try and maximize on potential profits..I think  its best to buy when price is low unlike going with systematic crypto investments that can expose you to over priced coins.

There is a saying that, stay away from the green candles, do not chase them.

There is DCAing when the market is going Up and DCAing when the market is going down, well I have been investing since last year now and my DCA on Bitcoin only happens when there is a bigger dip and so far it's my best plan yet.
I admire your plan as it's a basic strategy of buy low and  sell high..well technically without the selling part  Cool But seeing your rules have been tweaked here and there , do you buy several times in a month or only buy coins once .
sr. member
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September 09, 2023, 12:02:22 PM
#27
I think there are three reasons why we do DCA, to keep buying in small bags because we don't have substantial amount to buy a big bag, we don't trust ourself that we can save enough to buy a lump some and also we don't know when the market will go bull so we want to maximize the opportunity and be filling our bags gradually. Having said that, lets say I'm doing a DCA of $100 or $200 every month and I'm aware that the bull season might start anytime from April next year. I would keep buying and be watching the price, the moment it gets close to Bitcoin ATH, lets say $60k I would stop buying, I will hold onto my Bitcoin and sell at my targeted price.
sr. member
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September 09, 2023, 11:59:59 AM
#26
One I carefully thought out then was to buy BTC twice every month for 3years. This would be about 15% of my current income divided into two week intervals.
I tried to keep abreast and intune with news about BTC pump and dump and pay very close attention to any market signal or whale movements, inorder to decide on if to increase the 15% to 20%, and nothing more.
I used a good exchange to get my BTC and a cold wallet for efficient security.
I had to finally become as a pregnant lady, with patience waiting for delivery day. It never came because I liquidated my funds after a year when I had some personal issues to deal with.
Today am waiting for the motivation to be disciplined as before, but with a growing family, it is quite difficult so I just stick to mostly trading when I have the time.
legendary
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September 09, 2023, 11:30:41 AM
#25
Instead of just DCAing because you can afford that tinny amount every month well there is a risk you probably don't know about.

Assuming you plan to invest for 12 months by dollar cost averaging, and you keep buying 200$ worth of bitcoin every week or month, do you know that there will be times where the market will go up rather than down? DCAing at such times are increasing your risks.

There is a saying that, stay away from the green candles, do not chase them.

There is DCAing when the market is going Up and DCAing when the market is going down, well I have been investing since last year now and my DCA on Bitcoin only happens when there is a bigger dip and so far it's my best plan yet.

What is your own DCA strategy like? Investing based on value averaging? Dollar cost averaging? I think it's better to have some dollars awaiting your buying signal and buy the better dips.

Monthly investment is the best frequency to some people, they advice to never delay any investment, are you one of those people? Regarding of the price action of that month?
I try to buy the same amount every month but in different days, depending on how the market is going: if in my opinion it's going up too quickly then I prefer to wait and see if there is a dump, of course taking the risk that maybe it'll keep going up. So sometimes I could buy at the beginning of the month, others in the middle, or even at the end. For the moment I had better results this way rather than just investing always at a certain date.
legendary
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September 09, 2023, 10:01:02 AM
#24
Most people just consider DCA for the accumulation which is good as well but for a traders weather he's on a long timeframe or on the short timeframe proper profit booking should also be based on the DCA, All out is never recommend should never be the priority of a trader as patience is the key.

Let's explain it in consideration of the complete cycle time frame, near to bottom As we all know bottom can never be efficiently predicted but with the market sentiments and scenarios close to the bottom X amount of regular investment. On the reversal trend and consolidation above the estimated bottom X/2 per week, and so on until the confirmation of full Swing of Bull Run with at least 2X of Bottom estimated. On the other hand for proper profit booking follow for the same in reversal order.

hero member
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September 09, 2023, 09:45:31 AM
#23
What is your own DCA strategy like? Investing based on value averaging? Dollar cost averaging? I think it's better to have some dollars awaiting your buying signal and buy the better dips.
This strategy focuses, that you will buy in a bear market up to a certain level, which will allow you to get an average price below the level you determine. If the price reaches this level, or rises above, you don't buy, but when it goes below, you start buying again.

Determine the amount you will buy per week or per month, this does not matter much, but besides this, you will also have funds that you can use in case of significant drawdowns. This way, in the end you will have a certain purchase price that will be determined by you, and you will know at what price you will sell in a bull market, this will allow you to determine the profit that you will receive from your investment, everything is simple and practical.
legendary
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September 09, 2023, 09:43:06 AM
#22
~
Assuming you plan to invest for 12 months by dollar cost averaging, and you keep buying 200$ worth of bitcoin every week or month, do you know that there will be times where the market will go up rather than down? DCAing at such times are increasing your risks.
~
My initial plan when it comes to Dollar Cost Averaging is to buy on a monthly basis, but there are some limitations to it of course. One is that, I will not buy when we are in a bull market. Bear market is longer than a bull market, and I take the opportunity to buy during the bear market thru DCA. Kind of a bad strategy I guess knowing that the definition of DCA is to buy a particular asset on a weekly/monthly basis whatever happens.

Anyway, that's my strategy, and I know that we have the same strategies. That works for me, and I will continue that strategy until I'm tired of using it. Cheesy Just always remember for those who want to use DCA as their strategy that this isn't a quick rich type of strategy, or you will gain huge profit after 1 year. This strategy takes time before you reap the profits. A long term strategy that needs patience for an investor.
legendary
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September 09, 2023, 09:38:54 AM
#21
There is DCAing when the market is going Up and DCAing when the market is going down, well I have been investing since last year now and my DCA on Bitcoin only happens when there is a bigger dip and so far it's my best plan yet.
That's not DCA at all if you are actually trying to time the market to buy the dip m(not saying that you can't profit more with that tactic if you really know waht you are doing).

The reason people use DCA is to avoid stressing yourself while trying to buy BTC at the best possible time (btw its impossible to time the market and buy the the bottom) and instead you just buy bitcoin at the regular intervals no matter the current price.
hero member
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September 09, 2023, 09:26:31 AM
#20

There is DCAing when the market is going Up and DCAing when the market is going down, well I have been investing since last year now and my DCA on Bitcoin only happens when there is a bigger dip and so far it's my best plan yet.

Waiting for a big DIP is actually what DCA method addresses. If you wish to wait for a dip before investing I most at times think that you’re wasting the opportunity to buy. Once the market isn’t close to the ATH then I would say buy because without the certainty of what will come next it is better to cease that opportunity. What if one waits to for a dip before buying and that particular target price doesn’t come again, or probably the markets continues to green from that price you would have missed the opportunity waiting for a dip.


Quote
Monthly investment is the best frequency to some people, they advice to never delay any investment, are you one of those people? Regarding of the price action of that month?

Why most people actually go for monthly investment could actually be related to the fact that most people use their monthly salaries for the investment or the fact that at least the market will have change within that thirty days in month. DCA strategies should be done on how you feel it suits you properly or goes in line with your income but do not wait too long for a dip before making any investment most especially if you’re coming new to the market
legendary
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September 09, 2023, 09:04:39 AM
#19
There is DCAing when the market is going Up and DCAing when the market is going down, well I have been investing since last year now and my DCA on Bitcoin only happens when there is a bigger dip and so far it's my best plan yet.

You just don't have the right, long-term vision.

Assuming you plan to invest for 12 months by dollar cost averaging, and you keep buying 200$ worth of bitcoin every week or month, do you know that there will be times where the market will go up rather than down? DCAing at such times are increasing your risks.

It is foolish to do DCA for only 12 months with bitcoin. You have to look at it over 4 years. Or at least, now that we are 7 or 8 months away from halving, for a couple of years. But if I were you, I would look at it even more in the long term, which is what I do. Bitcoin is a unique asset, and it is going to become more and more in demand and scarce. It is worth considering keeping bitcoin forever, even to leave it as an inheritance, so you can accumulate amounts that are comfortable for you and take advantage of bull markets to partially sell and make profits, but always keeping bitcoin in the long term.

What is your own DCA strategy like?

Forget about the ups and downs of the market and continue to accumulate as much as I can, with a long-term perspective. As I have explained in other threads there are different variations of DCA, the most typical being to buy the same amount over the same period of time. But you may have more money available to buy at certain times and then take the opportunity to buy more, especially when the market is bearish.

legendary
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September 09, 2023, 08:58:10 AM
#18
Personally I prefer to DCA after a year-long bear market, like in 2019 or this year even, ideally leading into the halving, in order to try and get a reasonable discount.

I found this a good strategy during 2019 and I imagine from $20K prices last year to $30K this year will also turn out to be good/fair prices in the coming years. Also not a huge fan of DCA >50% of ATH, in order to get a 50% discount when averaging into the price, though this year I will probably be OK with DCA up to around $40K rather than just 50% of ATH, even if price returns to $20K thereafter.
hero member
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September 09, 2023, 08:46:33 AM
#17
So far, I keep accumulating the stats I am getting from the signature campaign,; this is my only DCA at this moment. No matter the market price, I get a round amount of USD in Bitcoin, and am not moving them around. Sometimes, I spend a little from there. But I did not spend much since I joined the signature campaign. I believe signature income is somewhat pocket money for some people and I guess it's not primary income of a person. So, instead of spending them all, you can hold it until the next bullrun and you may get a good return. Investing forum earned money is better than buying Bitcoin.
legendary
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September 09, 2023, 08:21:24 AM
#16
I think DCA is just a good strategy because it's very simple, calm, and realistic. A person chooses a fixed amount that one can afford to invest per month, and just commits to doing it, no matter how the price is moving. And of course, it's more profitable to buy at a low price than if it rises, but with DCA you win some and lose some, without needing to stress over market analysis, finding the right time to buy or sell, etc. Occasionally buying when the price is on the rise isn't a problem, IMO. The only time when I'd say DCA can be unwise is a few months of a rapid bull market that happen once every 2-3 years, but that's just generally not a great investing time.
legendary
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September 09, 2023, 08:20:11 AM
#15
I like thinking of DCA as being less prone to fluctuations. If you're buying small chunks of bitcoin every week, then you will definitely buy when it's considered low (as it did in late 2022). You will likely alleviate the potential loss.

There is no perfect strategy. Just think what is more suitable for your life. Is it buying $200 worth of bitcoin every week? Is it every month? Is it every once you get paid? You might think you can time the market, which in that case would be more preferable to have big capital and spend it for one purchase.
hero member
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September 09, 2023, 08:11:56 AM
#14

There is DCAing when the market is going Up and DCAing when the market is going down, well I have been investing since last year now and my DCA on Bitcoin only happens when there is a bigger dip and so far it's my best plan yet.
This not DCA,you are buying at the dip. This strategy is good because you buy bitcoin in a discount price and will have a significant amount but it is very risky because you might end up not accumulating the amount of bitcoin can you would have if you were using DCA method at a given period of time. This is because it is not easy to predict the market movement and when after waiting for sometimes the market didnt go as you expect,you might end up spending your funds before the dip. One the other hand DCA is the best method to accumulate more bitcoin into your bitcoin investment portfolio because it will lead to consistent increase in your bitcoin investment either when you are buying in the bear or bull market. It is just like someone working and assigned a certain amount,let's say 10% of his income monthly to his savings and he just allow the money to keep on piling up. We all have saving in a particular period of time or presently. This is the same with bitcoin when you believe in it,you use 10% of your weeklyor monthly income to DCA based on your cash inflow. Although this strategy is for those people that have steady cash inflow and not for those that dont have steady cash inflow,if not they might end up going back to sell from their investment as a sign to show that they are not prepared for the DCA method. Both methods are good strategy but for a newbie,it is advisable that they buy at the dip. I use both methods,


What is your own DCA strategy like? Investing based on value averaging? Dollar cost averaging? I think it's better to have some dollars awaiting your buying signal and buy the better dips.
I use DCA monthly and i buy at lump when i recieve a huge funds that i dont need for a long period of time.
copper member
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September 09, 2023, 07:57:37 AM
#13
Instead of just DCAing because you can afford that tinny amount every month well there is a risk you probably don't know about.

Assuming you plan to invest for 12 months by dollar cost averaging, and you keep buying 200$ worth of bitcoin every week or month, do you know that there will be times where the market will go up rather than down? DCAing at such times are increasing your risks.

The idea of DCA is to average your buy price since you will never know when will the price will dip that’s why user consistently purchases fixed amount of money on a certain date regularly. There’s a tendency that you keep wait and wait for a dip until it never happened since the price of Bitcoin is unpredictable.

Yes your idea is really good assuming that the asset show same pattern per year but Bitcoin is different because it can pump quickly while you are still waiting for the huge dump. DCA method is use to avoid FOMO buy while you already have the capital or if you have a regular income on a certain date.

Again, You are assuming a scenario that you are predicting a dip every month which is not the case.

Example: You can have a much better average price if you purchase on  16k, 18k, and 20k instead when the price dip from 25k to 19K which you will purchase according to the plan on avoiding green candle.
hero member
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September 09, 2023, 07:49:16 AM
#12
There is a saying that, stay away from the green candles, do not chase them.
DCA results won't be optimal this way, you may miss out on some purchases in the bullish market that you should have made.
DCA is actually one way to minimize skepticism from any market conditions including green candles because your purchases are always small amounts. If the market is in the green, hope that you have started DCA long before that.
DCA's most important suggestion is consistency.
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Activity: 658
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September 09, 2023, 07:46:32 AM
#11
Assuming you plan to invest for 12 months by dollar cost averaging, and you keep buying 200$ worth of bitcoin every week or month, do you know that there will be times where the market will go up rather than down? DCAing at such times are increasing your risks.
If I plan to accumulate  bitcoins for a year by using the DCA method, I will try to keep money for it weekly and make it more frequent like investing every week or every two weeks. I will also not want to make it a fixed amount that is small, I will invest the spare money I can get which is not always the same amount, sometimes it can be bigger, at other times smaller. Investing small amounts monthly for a year may not be enough, and is a waste of time, because in a year where you would have had more opportunities to invest, you restricted yourself to just twelve times for the entire year. If you invest huge amounts, then maybe the twelve times may work.
legendary
Activity: 1610
Merit: 2026
September 09, 2023, 07:46:25 AM
#10
I just convert in BTC every portion of money I receive in any fiat currency. I do it immediately when I get a fiat income. I don’t need any specific timeframe for this. As to me, holding a fiat currency means accepting high risk. Not only a risk of inflation, but also a risk of confiscation.
legendary
Activity: 2268
Merit: 1379
Fully Regulated Crypto Casino
September 09, 2023, 07:41:22 AM
#9
This is good actually, just set your schedule when to buy and don't hesitate, don't look at the price because that's your plan.
Your plan is to buy using the DCA strategy, so if you set it weekly, then buy weekly regardless of the price of Bitcoin. Especially if you do DCA on bear market, very worth it.
Yes. If someome gonna be worried about the price then there will be compromise on doing DCA. We cant always win the market so better to be safe when it comes to buying common shares. Fortunately we can feel it as were privilege to have some weekly btc coins from our signature fampaign regarding of the price of btc on the market.
legendary
Activity: 1050
Merit: 1100
September 09, 2023, 07:27:28 AM
#8
What is your own DCA strategy like? Investing based on value averaging? Dollar cost averaging? I think it's better to have some dollars awaiting your buying signal and buy the better dips.
Value average is a good strategy as the investor will set his target growth rate and constantly adjust contributions to suit the target. The ultimate goal is to buy more when the price is low and less when the price goes high. This strategy will be profitable if you can always predict the movement of the market accurately which is somehow impossible. Value average is not also convenient for new investors due to it's complexity.

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Monthly investment is the best frequency to some people, they advice to never delay any investment, are you one of those people? Regarding of the price action of that month?

Value average can lead to procrastination and delay in investment. Keeping money aside for investment and waiting for the right time to invest can be risky. You might be tempted to use the money for other things. It will be better to be consistent than to keep procrastinating until you miss an opportunity to buy. For me there is no best time to buy Bitcoin, I buy whenever I have the money.
hero member
Activity: 812
Merit: 560
September 09, 2023, 06:07:39 AM
#7
Instead of just DCAing because you can afford that tinny amount every month well there is a risk you probably don't know about.

DCA is a good means to buy and hodl bitcoin if one has the opportunity to do so, nevertheless, being the perfect means does not mean it also don't have a little risk involved in using the pattern, why i may not see it as a bad decision to use DCA method is because it provides you the time and every opportunity to invest at your very best convenience, it also ensure that risk of loosing much when you invested is reduced, it's our own part to decide how to make the best use of DCA in accumulating bitcoin to our advantage with any strategy we use.
hero member
Activity: 2366
Merit: 838
September 09, 2023, 05:51:12 AM
#6
Assuming you plan to invest for 12 months by dollar cost averaging, and you keep buying 200$ worth of bitcoin every week or month, do you know that there will be times where the market will go up rather than down? DCAing at such times are increasing your risks.
If after you did a DCA round, price goes up, it is good because you can sell it for profit.

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There is a saying that, stay away from the green candles, do not chase them.
I know you want to find better or best entries for your DCA but by being obsessive with finding good entries, you are becoming a speculator, trader, not an investor with DCA strategy.

When you try to do this, you will find bottoms by that you will miss bottoms.

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Monthly investment is the best frequency to some people, they advice to never delay any investment, are you one of those people? Regarding of the price action of that month?
You can DCA monthly or quarterly if you don't have big capital to do weekly DCA. Because if you use too small capitap for DCA, you will pay higher rate for withdrawal fee compares to total capital you buy at that time.

Buying on an exchange and leave your bitcoin there, wait for two or three months for one withdrawal is terrible practice.

Reminder: Do not keep your money in online account.
legendary
Activity: 3276
Merit: 2442
September 09, 2023, 05:25:18 AM
#5
DCA*-ing is not about timing the markets. You DCA when the markets go down or go up. The current market situation isn’t important to you. Anything you do other than buying monthly/weekly (with fixed amount btw) isn’t DCA-ing anymore. It may become a better or worse strategy than DCA’ing but it is not DCA’ing. If you buy more during the certain market periods then that means you are trying to time the markets and that certainly isn’t DCA’ing.

*DCA = Dollar Cost Averaging

sr. member
Activity: 574
Merit: 290
Bitcoin in Niger State💯
September 09, 2023, 05:19:22 AM
#4
Like I had mentioned somewhere else before, it is an individual-investor's kind of division making. Some times it also boils down to the investment funds you have on ground. Investors like you who just started last year are likely to go into the DCA than investors that begin since 2009, 2010, and so on. Because they have understudy the market volatility over time and overly familiar with the system. They tend to go with the Lump sum instead.

Anothrr reason could be the nature of trade you do outside the Bitcoin network. Maybe you are a serial entrepreneur who's trying new trades almost frequently and you need to access investments on monthly or quarterly bases. You're likely to be more interesting in ghe DCA. It could be more simplified through the use of Active and Passive investors for instance.

Everything lies on the choice and preferences of the investor whom must have made technical and financial investigations or survey on how the market flows. Or just simply by their level of tolerance to taking risks or even mere choice of decision.
legendary
Activity: 2506
Merit: 1394
September 09, 2023, 05:17:19 AM
#3
(...)
Assuming you plan to invest for 12 months by dollar cost averaging, and you keep buying 200$ worth of bitcoin every week or month, do you know that there will be times where the market will go up rather than down? DCAing at such times are increasing your risks.
This is good actually, just set your schedule when to buy and don't hesitate, don't look at the price because that's your plan.
Your plan is to buy using the DCA strategy, so if you set it weekly, then buy weekly regardless of the price of Bitcoin. Especially if you do DCA on bear market, very worth it.
hero member
Activity: 1316
Merit: 561
Leading Crypto Sports Betting & Casino Platform
September 09, 2023, 04:57:55 AM
#2
But, and this is the big but, it takes a level of market foresight that many people, even seasoned traders, dont always have.

If everyone could correctly predict each dip, the market would be a very different place, wouldnt it? Now, staying away from green candles makes sense in theory, but its not always easy to do.

DCAing is great because you set it and forget it. It helps people cope with the crypto market's dramatic swings. While I like your sharp market assessments, I disagree that DCAing during market upswings necessarily raises risk. Truth is more nuanced and involves numerous aspects. Every investor must decide how much risk they can bear and act accordingly.
sr. member
Activity: 686
Merit: 403
September 09, 2023, 04:20:04 AM
#1
Instead of just DCAing because you can afford that tinny amount every month well there is a risk you probably don't know about.

Assuming you plan to invest for 12 months by dollar cost averaging, and you keep buying 200$ worth of bitcoin every week or month, do you know that there will be times where the market will go up rather than down? DCAing at such times are increasing your risks.

There is a saying that, stay away from the green candles, do not chase them.

There is DCAing when the market is going Up and DCAing when the market is going down, well I have been investing since last year now and my DCA on Bitcoin only happens when there is a bigger dip and so far it's my best plan yet.

What is your own DCA strategy like? Investing based on value averaging? Dollar cost averaging? I think it's better to have some dollars awaiting your buying signal and buy the better dips.

Monthly investment is the best frequency to some people, they advice to never delay any investment, are you one of those people? Regarding of the price action of that month?
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