Topic: Why DCA Strategy (Read 376 times)

DCA is more technical than it seems what if after a short term profit price continues to pump there will be a temptation to buy not minding if that will be the highest price will pump to. DCA is a strategy that is applied to keep buying at intervals, if we apply DCA for a short term gain then it will be a complete waste of investment because DCA requires buying small as soon as price dips

Dollar cost averaging is very important especially when you don't know the direction of the market whether the volatility is going up or is coming down. When you are totally blanked out at the market movements and you don't want to miss some opportunities and at the same time you don't want to lose big amount of money, you have no option than to use dollar cost averaging.

It is another proven strategy for long-term investors who has fixed weekly or monthly income. This is a perfect situation where dollar cost averaging works effectively. You wouldn't mind the market condition since you have a fixed amount of money you invest weekly or monthly.

In this case, it is necessary to correctly set the price zone, after reaching which you will start using the DCA strategy. If you started averaging your position from $50000, then you probably have no money left to continue shopping at the current price level.

Even if you do DCA then of course you would be finding the lowest price as possible which you could really that maximize profitability once the market tends to recover.Although this strategy isnt for all considering

that not all the times we do really have the funds or money for us to invest on the said situation or condition.You can DCA but of course if you do have the money to invest on.

Just like me on which i had put up all the funds i do have allocated for investment and suddenly i do find out an opportunity for me to get in? Then, there nothing i can do but to
see those opportunities to go by since i dont have the funds.

DCA gets popular when the price is plummeting because it is one of the best strategies to lower the price of our investment especially when we get in at a higher market price.  Usually, those who DCA keep on holding their previously bought coins and just accumulate when the price plummets.


Waiting for a longer time and knowing that doing that will yield a higher return is not unbearable to anyone.  Those who don't have patience are people who lack knowledge about the market and since they lack knowledge, they do not find any valid reason why they need to have patience. 

This is the right thing to do, another problem of the DCA strategy is that it is going to take a lot of time before you see positive results, and this is unbearable for the people of today that want everything to be handed to them right now, so DCA is not really a popular strategy with those which lack patience as they think it is too slow, but if you can keep buying a little bit of bitcoin every single month you will see that when the bull run finally comes you will have a decent stash and your profits will be very high.

I found out that in DCA, it's also possible to buy when the price is at the dip. This means that we can expect a short pump and we can sell our btc for short term gains but I think most of the time, DCA users don't mind if the price is high or low but what is important for them is to follow their buying schedule. They are in for long term anyway so they know that the price can always rise higher than on what they currently or previously see.

I believe that DCA got even more popular this year because people starting to get that the bear persists to continue so instead of their usual strategy which is to all in, they try this new start called DCA and slowly accumulate after each decline.

The hardest part when you do DCA is having the money or capital since we cant really be having that huge capital or money for you to make use even if you've been deciding to have that DCA or buying on those dip or

decline prices.Some had already make use all of their money which had invested on the higher price and when the market goes down and even if they wanted to invest but still there's no money that they had on their

pocket and this is why some do really consider on taking up some loan which is something not that suggestible or recommendable to do so because we cant really be sure on when the market
will really be making out some recovery and if you could repay those loans or borrowed money on time without relying into your crypto investment then it should be fine.

Honestly, the DCA strategy I never something difficult but it is the discipline that involves the routing that makes appear to be difficult, and the people who are hard to maintain discipline could always set a certain goal once the goal is achieved they can skip the DCA for some time and later proceed when they are set for another phase.

I've been doing DCA since May 2022 with Bitcoin. As long I can afford every month, I can DCA at least a percentage of my monthly earnings to Bitcoin in order to build and accumulate wealth.

I really don't mind about the price of Bitcoin right now because I am thinking long-term despite the uncertainties of the market these days. They say that the best time to accumulate is when things are going quiet, but that's not always the case. Even if so, I would still buy BTC with my extra "not beer" money.

In my estimation, DCA is a great strategy but works better for people who are inclined to buy high and then proceed to sell low. Also, when we talk about volatile markets and short-term investing, this is the most convenient strategy that I have found, I have been curious to know. Does anyone use a DCA calculator or just DCA randomly? For those who have used both methods, which did you like the most?

DCA(Dollar cost average) remains the best way to properly manage your risk while trading cryptocurrency and also becoming profitable too. This involves making a new entry at every new level a particular price is attained. This will help manage your risk of liquidation while trading futures too and also help you manage your loss while holding your spot bags.

I thought I have said on this thread how DCA may not be helpful after a massive long term bull market. Example are people that saw bitcoin to be profitable and started to DCA in 2020 when bitcoin increased above $30000. No matter how the DCA is, about the investment from that time to now, the person is losing by now. It can be unrealized loss, but it could be for a long time. If it is crypto, best to follow the trend. Like now, DCA is very good, but not during bulls time.


This is a very good idea, in a period like this, DCA is very good. We may not know the bottom, bitcoin may still fall below $19000 again, but $19000 is already low. DCA can be very effective and profitable this time, but investing at $19000 won't lead to loss after many months has passed.

Well since we don't know the bottom yet and some analysts said that we still didn't been at the bottom yet it's better to use the DCA strategy if we want to long term investments. the crypto market is still uncertain and very volatile right now because something affect the market from external

The DCA strategy is indeed often used for gradual purchases, that is, so that the price obtained is of various prices, and by using the DCA technique, of course, it will reduce the high risk in purchasing, and indeed very many use the DCA system, which is not just novice investors, who use the DCA system, but most of the big investors use the DCA system in their purchases.

And this is what makes this strategy so difficult to implement even if on the surface it seems like it is something easy to do, and what better example of this than exercise, whenever there is a new year people make purposes for the upcoming year and for many this includes visiting the gym regularly, and during the first month you will see the gym being completely packed with new people, but then as time passes you will see that out of all the new people only a handful still come to the gym after a few months since they lack the discipline to keep exercising, and the same applies to the DCA strategy.

We know that capital isnt infinite this is why making such action or step shouldnt really be done in haste or else you would definitely be still hanging on the upper portion if the market would comes even to its worst.

Yes, this had been pretty common if we do speak about DCA but not all would really be that confident on doing so.You do have the money but making such action will
always be raising up some questions.

I will try with the DCA strategy for a long time but this time I still haven't walked 1 year so it's still in the process stage to continue long term.

This method is quite simple and easy. I think that many investors do the same thing with DCA practices so that they can save on routine purchases. Let's assume that what they do monthly is clear to me a savings in Bitcoin hoarding which is often called DCA for long-term accumulation.

Weekly will be good enough to invest in DCA but it depends on investors to choose it myself weekly becomes an option in DCA investment with a nominal that is not large but every week that my BTC will continue to grow non-stop, of course I try not to stop in the middle of the road any condition including when the price has gone up eg $50k or more.

I just want this bear market for a long time, because I want to buy Bitcoin with more dollars (lol) but whatever it is I have to stay consistent in DCA practice.

The idea of DCA is to prevent investors from investing all their into the market (either crypto, bonds, or stock) and that's what the above was saying. He just trying to advise people not to always invest a certain amount all the time but if we look into what DCA really means it is simply an investment strategy of equal fiat amounts on an asset at a certain duration.
Having said that, what's important is the discipline that the DCA involves if people have the capacity to increase their weekly or monthly DCA amount they can.

No one will ask you to invest everything in bitcoin, of course it is risky. You don't have to sell your house, land, car, gold or other physical investment assets to invest in bitcoin because you can still invest as little as you want. The more you invest, the more bitcoin you will collect, and when the bull market starts, you will make a profit.

Bitcoin whales are called smart because they continue to buy and collect as many bitcoins as possible during a bear market, they will hold it for the long term and they will take huge profits when the market is bullish. It's just that, you may not be able to be like them but maybe you can always invest whatever your funds are capable of.

A lot of good reason has been said in this thread. As for me, DCA seems to work if you have limited earnings per week or month. Like people were earning paycheck to paycheck, rent, food,... take all of their earning money. So they can only afford DCA into something with a little amount of money at a time but in many instances over a long period of time. Sort of like saving where no matter how little it was per day, you still keep doing that.
I was in a signature campaign, earning $25 in BTC per week. I thought it was like I was DCA into BTC no matter how much little it was compared to the other bag. Sure, I can sell it and wait for maybe once BTC goes down further and buy back but the crypto market is very unpredictable. Who knows, maybe it'll go up right after I sold. So yeah, people who give up on speculation and switch to DCA for more ease of mind.

You had this comment straight to the point. Spot on! This is the issue often faced with DCA proponents or the intermittent "buy the dip kind of investors." I've been trapped in this too. At every point of sticking to DCA scheme of  purchase, one would think one should increase the purchase percentage because price is expected to revert at that point. It dips more. The truth is that no one can properly allocate their funds for purchases during a bear season and get such in perfect entries.

DCAing is good when you don't trade. It's just like depositing your money in BTC and leaving it there for some time. Having to just hold it for a long time means this money is just your extra which you don't see yourself withdrawing after just a week or a month. When the market had almost bottomed, this is actually a good time to do DCA. DCAing while the market had already gone up, will be a lot riskier.

I think it is highly inadvisable to invest all the money in bitcoins if they do not have sufficient reserves for their daily life. Investors know that prices will still fluctuate, meaning they will go down or up without anyone knowing for sure. So setting up an investment for an amount you can afford to lose has actually been suggested quite often and I don't think they should be so greedy for it.

Even if you and I are absolutely sure about the future of bitcoin, being a wise investor would be highly recommended. DCA and accumulation can actually be profitable, but cannot always be expected to be profitable as long as sufficient cash reserves are not held by the investor. Those who can become long-term holders are those who have enough funds out there and they don't even need to sell their bitcoin for immediate needs, so the idea of ​​DCA and consistent accumulation won't suit everyone either.

I have been doing DCA for a long time and in this regard I wanted to make two points.

The first is that DCA is the most feasible for most people, because few, especially retail investors, have a good lump sum to invest all at once. So, investing little by little as you save money is the most logical thing to do.

On the other hand, the DCA does not have to be exactly the same all the time. If you have $100 to invest per month, you don't have to limit yourself to that amount if at some point you have more money available, especially in bear markets like now which are better times to buy.

For people who don't know the idea of DCA would probably see it as a thing of curiosity, but once they have known the fundamentals of it, then they would understand why a lot of people start to use it for investing and continue to do it for a long time no matter what the cycle of the market is.

I think it's not just during the bear market but also the bullish one, depending on the duration of it. If you believe in what you are investing in, you should continue it and manage your risk.

It just helps you lower your entry price. It's one of the things that you could do to help manage your bankroll smartly, and it's been proven to 'work' most of the time since you're spreading out your buys over time that helps you collect more value in your stash too. It's what I did for the past few years and it helped me get as much bitcoin as I can over time without having to worry about the prices that much. Managed to came out on top a few times over with what I put in, and I'd do it again even if it takes years to take profits.

But keep in mind that the risk will still occur. because the market has high volatility, the loss of value will be experienced more quickly when the market is going down. This will also test how strong the resilience of your capital is. investment for long-term goals with a DCA strategy will also be maximized if it is balanced with the amount of reserve money and management that is carried out as I mentioned earlier.

Risk reduction that provides liquidity and flexibility to the portfolio will be more secure when the market is crashing. and keep in mind also that psychology will also play an important role, so never leave the initial strategy and change course. do it consistently and wait for the profits to arrive it will be good for the future.

Even if we  do speak about DCA, it wont really still guarantee out that it would turn out to be simple because emotions will really be your primary enemy on this one aside on finances.

You might have the money but you would really be bothered if you should really be buying or wait further?There's no such thing about easy even with DCA strategy.Aside from financial capability.

You cant really be always that confident on doing such action.Yes, this is really that sensible if you are really that going for long term but always be considerate
that you should really make yourself aware with the risk because not everything would turn out to be positive in the end years to come.

DCA doesn't lessen volatility impact completely. It can be useful for wide spread of multiple purchases but at the end it doesn't guarantee any short term security because volatility is a two way mechanism, it's either pumping or dumping and sometimes it moves faster than imagined.

Undoubtedly DCA is the best strategy for digital assets and investments but it also requires discipline because no strategy is 100% efficient. With every strategy lies hidden strategies. Knowing how to use DCA to one's advantage especially when the market moves in opposite direction is also a plus.

One very important key thing about DCAing in Bitcoin or crypto investment is that it will help you to get any crypto at good price without missing out the overall price movement of that particular crypto and too for someone that is new into crypto, dollar cost averaging is a powerful too for the investor to use as the new investor is yet to understand the fundamentals and technical analysis of a digital asset in order to know when buy or sell.

Ofcourse DCA is one of the best strategies out there. It is one of the simplest strategies which is consistent enough in giving profits.
Obviously we have to make sure we are doing the DCA properly not buying more around the same price.
Buying the dips and waiting for the price to go above your average price is when you know you have executed the strategy right.
The best thing about this strategy is that even an absolute beginner can do this without prior experience to trading.

And Dollar Cost Averaging (DCA) is one of the doings of a lot long term Bitcoin believers because if you are doing Dollar Cost Averaging (DCA) you will not enjoy profits in the short term as you cannot guarantee that for every buy you execute it will immediately pump.
So, you need to be patience too if you want to adapt Dollar Cost Averaging (DCA).

Just allocate depending on your budget, whether it's tight or not.

As long as you're doing the DCA based on how free you can do it and the most important matter of it is that you're consistently doing it because that's what it should be.

That's the good thing in DCA if you bought now and then suddenly price fell, you can even enjoy it more to buy at the dump.

I tend to agree with this, it's a kind of hoarding Bitcoin for the long term and this investment strategy is suitable for those who are afraid of always losing the value of the money invested and aim for profit in the long term purpose.

How many of us here experience this kind of experiment in a way of purchasing Bitcoin?
Instead of buying all at once, purchasing in a DCA way couldn't also hurt your pocket if the bear market will continue.  Additionally, the advantage of this could be a risk reduction which provides liquidity and flexibility in your portfolio and prevent bad timing when the market continue declining the price.

In practice, DCA also requires a large amount of capital if it wants to continue to do so, because at any price it will make a purchase. and the assets purchased are mostly for the long term. This strategy is indeed very effective to continue to collect assets for a certain period of time on a regular basis and it will be better when there is a bearish occurrence because there will be more assets owned but at a cheaper price.

In the DCA Average strategy, purchases will be known by making a portfolio of how many assets have been purchased. The DCA strategy is perfect for those who want to continue to collect bitcoins or other assets for the long term on a consistent basis.

The DCA strategy is a very simple practice for me to invest long term in Bitcoin. I always plan in a bear market because I take advantage of a good situation for this opportunity, regarding financial management it must be considered because I always spend money on investing in this DCA strategy every time. weekly with an allocation of $50/$100 depending on how I can make other money but I always try in this practice to always be effective in long-term Bitcoin accumulation, this is quite simple but it takes patience and also good money management.

This is the best strategy to work with long-term accumulation and there are too many reasons to do DCA, It reduces risk on investment, it is more efficient in terms of the average price achievement for the total holdings in the sideways-moving market. It boosts the profit more than the regular spot entries. Everyone can use it according to the plan there is no minimum valuation. Long term investment should be focused with the DCA is per my experience all in is gambling.

Yup it's always good strategy. For those who do not excatly understand the DCA and how it works then I am quoting some good points down here for the reference:



So in short one can workout the DCA strategy in the volatile market such as the crypto. For example, if John wants to keep hold of his assets in the Bitcoin and do not want to trade it or get carried away in the world of chaos and ups and downs then he could plan for DCA strategy.
In this John simply makes a planner and sets his end goal such as how much money he wants to put in the Bitcoin?
Let us say John plans to buy two times in a month on 5th and 25th of every month. However John will always do this irrespective of the price of bitcoin on those dates. Now let us price of bitcoin on 5th was 1000 bucks and on the 25th it was around 1200 bucks. This way he will repeat the cycle every month and might do it over 2 years.
Due to volatility it is possible that bitcoin may go all the way from 1000 bucks (Starting cost when John started) to let's say 35,000 bucks by two year ended. However for John the cost would be average of every month later averaged with two years average. The final result would be such that he will be in positive investment as compared to those who bought at 35,000 k or who bought at 1000 k but kept selling and buying all the time. :-)

Definitely helpful strategy in the volatile world of bitcoin or other coins if you are proper planner and consistent with it.

In order for the DCA strategy to be effective, it is necessary to properly allocate your funds for upcoming purchases, as well as correctly set the price at which you should start making such purchases. Otherwise, you will spend all your money, and the price will continue to decline and you will not be able to make next purchases.

DCA is very good, but in crypto, not good to use it after a massive bull market, because there can be bear market for months just like what happened this year.  Anyone that DCA at the beginning of this year till now will really be sad until next bull market. It is good not to just invest at all at times.


@teosanru. OP did not mention anything like trading, he talked only about investment and DCA means of investing in particular. Probably you misunderstood the OP because he created the thread on trading board but he did not  about trading at all.

If it's not going to be working one for an individual, what would be the best for them? I don't think that there's other strategy that fits everyone's taste.

DCA is one of the best of it and it's very effective at these times.

Yeah, not just to accumulation of crypto but also other investment vehicles.

I didn't mention"trading" at all.

^ The thing that I have known is that this is a very effective way of investing in potential crypto while there is a bearish market.
And that is definitely right, this investment method is like playing safe in the market, and if you don't know how to invest in the right position. Through this DCA way of investing you can manage your risk and possible minimal losses. This could be a good strategy if you are new in the market field.

Dollar-Cost Averaging (DCA) is an investment strategy that is considered by many as a good and simple strategy, and widely in use by investors. It entails investing a given amount of money in a particular security for a given period of time regardless of price. Why most investors consider this strategy is a thing of curiosity.

You may want to know, it helps you develop self discipline (esp as a newbie) while considering the market and your tolerance to risk. Emotion can play a substantial trick in disadvantaging investment decisions. DCA can counter this impact.

Another good thing is that it lessens the impact of volatility as the total investment sum is spread over multiple purchases of the security.  This strategy can be very effective if employed during bearish market.

Lastly, the strategy can be applied in any crypto investment, bonds, stocks or any commodities. It's a fine choice! However, you can always stick to what is best for you as an individual.