Topic: You will lose more if you DCA without knowledge - page 2. (Read 537 times)

This is a very dump thread. I didn't expect to read this type of thread today. I mean if DCA is as difficult as you portray it, to the extent of advising newbies to stay away from it. Which is the safe means of investment to be followed?

All DCA needs is consistency and patience. You do not need to study the market price, read candle or do technical analysis. Just be steady with what you can afford to invest and smile on the long run. I don't believe there are alot of things to know about DCA. Unless you started at the apex of bull run and want to withdraw at the climax of bear market.

Are you against DCA method that everyone is happy with with as it is the suitable method for young investors to accumulate their Bitcoin and other coins.

DCA method is suitable for long term investors and not for short term investors because it gives long term investors chance of buying Bitcoin at very low and affordable and after all, if they want to sell, they will  get more profit than investing using DCA for short term investment.

Well you could say maybe the Op is actually trying to relate to other thing or maybe he is actually confuse on what he means by saying that DCA can be worse for newbie because I see no sense in what he is trying to portray because even if a newbie fails to follow up with the DCA strategy, there is only the fact and point that his investment wont be achieved because he might maybe temper with the holdings and anybody that can temper with their holdings can still do same with every other method and that includes the lum sum too so basically the DCA is still the most preferred for any newbie to go about with any investment in Bitcoin.

I don't know when you started using DCA methods; maybe it has not been a long time; maybe you have just purchased Bitcoin like three to four times when the price is always high; that is why whenever the price drops drastically, you are always  find yourself at lost. But if you have been buying Bitcoin on a weekly or monthly basis for a long time now, I don't think you will be at lost.Trying the DCA method doesn't just mean being at  profits at the time, but the truth about it is that when people who buy Bitcoin at once lose 5% of the capital you buying at a different price, maybe you will just lose like 3% of your capital.


Using the DCA method is not hard; it is easy to do. Just buy on a weekly or monthly basis, so I don't think you need deep knowledge of doing this. The only thing that newbies need to know about this is the types of wallets that are supposed to storing their bitcoin to avoid getting scammed easily, and the advisable wallets are non-custodial wallets. Using the DCA method did not require further research. Knowledge is very important in the cryptocurrency industry if someone truly wants to be successful, but I don't think much is attached to using the DCA method. It very simple to deal with.

I think you are not correct because it doesn't take any experience to deposit BTC in DCA. Here you can deposit any amount of money on a proper plan and weekly or monthly basis. But you have to have a real long-term DCA strategies income situation that will keep you stable even in times of crisis. Long-term I mean 5-10 years of running time is essential.

I still believe for one investor to follow DCA method, he should study first its advantages and some disadvantages so that he can weigh things more if that’s the best time to DCA or not. You cannot deal with DCA successfully if you know nothing about it. One should also be knowledgeable about it prior from doing it.

It’s also another story if you start DCA while bitcoin price is heading to its new ATH. That’s quite risky to take. Hence, start buying bitcoin when the price is bearish and continue it with DCA so that you can maximize your profits once you decide to sell at a bullish market.

Bitcoin will always the best to invest in at any time. Although it may has reach its ATH recently but I still believe good profit can still be made with time investing in it. We all know that bull run is at the corner, so even buying now using DCA for a while can still make you good profit. It's only altcoin that I can't really advice people to invest much on.

There’s no chances to make wrong move with DCA. In fact, if you want to feel that you’re not like spending like one time big time, DCA is the key. It will help you manage your finances so you won’t get to spend more than you can afford to lose, and it will certainly lessen your risk of losing since you are only buying whenever you have spare money regardless of the price of bitcoin.

DCA has always been an effective strategy in bitcoin investment accumulation. The only way it gets wrong is if you keep DCA when you are not completely ready to hold your investments like 5-10 years. So you are only using up all your funds through DCA yet you are not aware of its full usage and advantage. With that, it’s obvious your investment won’t still work in the long run. You might end up selling them shortly right after when you see the price has increased a little. And worst is if you end up selling them at a loss.

I agree with you, I don't think it's a good idea to start DCA when Bitcoin is already at its ATH, because it's highly volatile asset and after a +60% in 3 months like it made it can do -50% in the coming weeks. The price has already started to decrease by the way, and since many traders/investors haven't taken their profits yet, it's not surprising. They certainly don't want to be the last one to sell, at the bottom, so many of them don't wait the halving to have happened before selling IMO.

Sorry but this doesn't make much sense. We recently achieved new ATH and are not very far below it, so it's pretty much impossible to be at a loss with DCA strategy, unless you're talking about some super-short term from the recent ATH till now, in which case, you'd still be few % down at worst.

Care to elaborate more on how you managed to end up at a loss? I suspect you were not using a classic DCA approach.

I don't know how you have come up with this, but it is flat-out wrong, DCA is the best strategy for newbies and it helps to minimize the risk of trying to game the movement of market and also the risk of price volatility. There is no "special" knowledge needed to use DCA strategy and i cannot see any major risks for people who use it, i always advise newbies to use DCA strategy to purchase Bitcoin, instead of making lump sum purchases.

I bet to differ from all others who may have misconception about what form of DCA the ops refer to because for sure it is very important to note when the buy price and the sell price occurs, and not buying at high price and also taking the right steps to focus on Bitcoin accumulation instead of the dollar cost of Bitcoin at that point.


Let clear up some of this facts so as to remain at a basic ground that will clear off every misconceptions, while trying to understand the ops.

Actually this is one hard truth about DCA strategy while those who are knowledgeable may just hold their funds in other to pull a lump sum strategy when the price drops

Though still yet this only limit the gains they will make at time since in proper DCA strategy, high or Low the Investor continues to buy which cumulatively he/she will still be in gains with time after all we all can agree that bitcoin is the best store of value and so while those who are knowledgeable may gain higher those who are less knowledgeable will also gain and probably more if the price continue to raise since we can also say no body can actually predict bitcoin price movement, after all we didn't expect bitcoin to still be around $70k few days to halving or even expected a new ATH before halving

In fact, what do you expect from DCA? Do you hope that your Bitcoin portfolio value will continue to rise? DCA is a way or strategy for accumulating coins, for example Bitcoin, with several withdrawals at certain rates, with an averaging system. And so far, DCA has been very successful to implement, even for beginners. Because there is no need to worry about complex daily indicator analysis as is done when trading.

Well, on the other hand, the price of Bitcoin is volatile, it will never continue to rise. In fact, when the BTC price experiences a significant increase, there will definitely be a moment where a market correction occurs. So the price of Bitcoin will fall for a while. This will cause the value of Bitcoin in your portfolio to decrease. Of course. But that doesn't mean you experience a loss, as long as you don't sell your Bitcoin, you actually haven't experienced a loss. Your Bitcoin remains intact, only the value of the amount decreases when converted to stable coins or fiat.

And this is what often makes someone panic, namely the decrease in conversion to fiat. While as long as you are still holding, it won't be a problem. Because you can still get profits in the future, as long as you don't panic and sell the coins when the price is falling. But, if you always panic every time the price is going down or declining, whatever the strategy, this will not work because you will panic seriously and sell the coins immediately because of the panic situation.

The Op probably made mistake of his content of what he was about to say. Or he does not know what the uses of DCA. DCA is one the best method of acquiring bitcoin in the market and it is use for low income workers or side Hustlers. I also used that method to acquired my bitcoins for about 6 months. There was a time I was topping it every week and later I changed it to months. And that is how I was changing the investment input. And today I am okay now and I will buy more in the halving. So when I see the Op saying that he lost bitcoin because of DCA, I was wondering how?
And I think he has not gotten the full understanding of DCA.

I really don't understand where you applied your DCA method, whether it's via spot trading or via future trading, and to your awareness DCA strategy isn't something you do today and expect to have your Bitcoin portfolio start increasing in value immediately, this a wrong way of thinking that Dollar cost averaging works, it simply a way of Buying Bitcoin without having to dive into the market at once, this way you wouldn't be affected by the price volatility, and also it will help you buy both in discount prices eventually we have the price dip down a bit.

I think there is something wrong with the DCA strategy that OP has been practicing so far. I don't know why he makes a loss when using DCA as his strategy, while most others make a profit because the average price is lower. He needs to make adjustments because apart from strategy, the strength of the budget can also affect the level of profit obtained.

So that means; he must continue to do DCA with the same or higher budget than before, if he does it with a lower budget then of course the average price can be higher compared to those who use the same budget to buy DCA.

You didn't share with us the research knowledge you gathered for the best DCA strategy to adopt by newbies like me willing to invest in cryptocurrency. You should have, but it's okay.

Well, from my own research, DCA relieves market volatility by spreading out a certain amount of investments over a set amount of time, reducing the impact of market fluctuations on expected profits.
Also, when trying to DCA, the right time to invest is very important because it determines how effective the strategy is with producing the right profit/returns based on the risk taken.

In total, the way an investor wants to invest is crucial and very reliant on the investors risk appetite, the time horizon of the region the investor resides in and what the objective or goal for DCAing is.
 In summary it is best a newbie like us, start with small purchases at lower frequencies, at the right time with a very good goal in mind.

You said a lot and you didn't say anything, you just keep repeating volatility and newbies this and that, you should be specific with the mistake you made that led you to loss. Why would newbie should stay away, you haven't answered that yet when DCA is normal way of buying Bitcoin so that you can take advantage of it's swing prices so that by the time you finished buying, your average will not be loss in case the price fall later.

What I think you must have done is that you probably bought Bitcoin around $72k where you bought most of your dollars and when the price reduce, you didn't have money to buy more to average your buying and you are writing article to discourage other newbie to learn and read when it's pretty simple logic. If you have more money, buy more when the price retouch supports line especially on weekends, you should average when the market move up.