You will lose more if you DCA without knowledge - page 3.

bitmover

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Quote from: tranthidung on April 11, 2024, 05:26:45 AM

See the HOLD chart and make your investment plan for entries and exits (withdrawal strategy).

Are you ready for the Bitcoin bull market? What's your plan? Some ideas for you

I have been thinking a lot about thosee exit strategies, specially the one designed by JayJuanGee

However, I have been reluctant to sell my btc. I think I still need to accumulate more. This is the best asset around. Cannot be confiscated, protection against inflation...

I see sp500 very expensive... treasuries looks problematic with all this money printing and debit... bitcoin looks like an amazing opportunity

Zaguru12

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Quote from: Why2why on April 10, 2024, 06:36:44 PM

What I have noticed with my bitcoin holding is that, I have continued to lose more, each time i try to take advantage of the price to profits, in form of DCA approach.

This outcome lead me to make further research about the best way to build profits using DCA and I find out that, is a wrong thing to do as a newbies without adequate knowledge about the volatility of the bitcoin market, and also no matter how sweet the DCA approach have been for experience bitcoin investors, DCA can still be the worst for a newbies, so I say newbies should stay away from DCA until they have the knowledge of the risk and approach to DCA.

You didn’t state how you DCA, hope you’re not just buying when the price gets high and even at that you won’t still lose if you do not hold the coin for a very long term. DCA as the name implies gets you an average price which should be lower to your take profit target. Let’s look at it mathematically, if you buy one bitcoin at different prices like at $50k, $56k, $62k $67k and $71k. You He have the average of $61.2k so should you take profit at price higher than this then you would definitely be in profits.

Why you’re on loss now is probably because your average price is still lower than the take profit or the current price of market.

cryptoWODL

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Quote from: Why2why on April 10, 2024, 06:36:44 PM

What I have noticed with my bitcoin holding is that, I have continued to lose more, each time i try to take advantage of the price to profits, in form of DCA approach.

Thank you for reading.

I cannot accept your incoherent argument for investing in the dollar cost averaging method. Dollar Cost Averaging method is an easy and recommended strategy for beginners to invest in this method you can buy bitcoins at any price. If you use DCA when Bitcoin price is high and DCA when Bitcoin price is low, your dollar cost averaging will be the same. If you choose to invest in this method, you need to have the patience to continue it for a long time.

When you used the Dollar Cost Averaging method to invest in Bitcoin, the price of Bitcoin may have been high and when you sold your investment, the price of Bitcoin may have gone down due to which you lost your money there. Investors who invest using the Dollar Cost Averaging method continue to invest and continue to invest until they reach a certain destination. So OP if you also choose to invest in this method then you also keep the mindset of holding it for a long time. In order not to get impatient when the price of Bitcoin falls investing in this method is advised to be patient and hold for a long period of time as the price of Bitcoin will rise again if held for a long time.

Questat

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Quote from: Why2why on April 10, 2024, 06:36:44 PM

What I have noticed with my bitcoin holding is that, I have continued to lose more, each time i try to take advantage of the price to profits, in form of DCA approach.

There is nothing wrong with the DCA strategy but what went wrong is your timing. If you just buy Bitcoin during price corrections or during the bear season in general, you won't lose any amount but rather make a huge profit when you hold and wait for the bull season. But what I see in you OP, you buy Bitcoin at the pump and sell when it dumps. If that is your practice, you don't need to wonder why it happens to you.

I advise you to recall your buying and selling history and analyze it carefully. For sure you can find where you become wrong.
Because if the DCA strategy is wrong, then we all have suffered losses just like you OP but we're not and so we disagree.

Ruttoshi

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Quote from: Why2why on April 10, 2024, 06:36:44 PM

so I say newbies should stay away from DCA until they have the knowledge of the risk and approach to DCA.

DCA strategy in accumulating bitcoin does not have any risk if it is done properly. It is the best method that a beginner or low coiner can use to accumulate bitcoin without stress, because he assign a certain amount of money that he can use to buy bitcoin regularly either weekly or monthly. DCA strategy is used to grow your bitcoin investment portfolio bit by bit until you have reached 70% of your bitcoin target.

The only risk in using DCA is if you do not have an emergency funds for back up or your are DCAing over aggressively, that is when it is risky, because when an emergency arises, you will go and sell your bitcoin that you have being accumulating when it is not of your own will. Why I said that DCA is easy is because, those people that are used to saving some certain amount from their income in the bank or somewhere so that they can use it to achieve something great in future will be easy to DCA because they are used to saving. Instead of saving cash in the bank or somewhere just use that money to buy bitcoin regularly.

No knowledge is needed for DCA, only the basic knowledge of bitcoin. Bitcoin investment should be for a long term.

lovesmayfamilis

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He probably wanted to invest and sell after a fairly short time. Talking about regular investments with little opportunity to have extra money does not in any way relate to the concept of whether a person is experienced or not. Yes, you must have strong confidence and strong hands and not cry when the price drops. But comparing experience and poverty is not the same thing.

tabas

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Quote from: Why2why on April 10, 2024, 06:36:44 PM

What I have noticed with my bitcoin holding is that, I have continued to lose more, each time i try to take advantage of the price to profits, in form of DCA approach.

This outcome lead me to make further research about the best way to build profits using DCA and I find out that, is a wrong thing to do as a newbies without adequate knowledge about the volatility of the bitcoin market, and also no matter how sweet the DCA approach have been for experience bitcoin investors, DCA can still be the worst for a newbies, so I say newbies should stay away from DCA until they have the knowledge of the risk and approach to DCA.

Thank you for reading.

How it can be worst for the newbies when it's one of the best approach that don't force them to buy a whole Bitcoin and allows them to buy at any rate with any amount that's available to them? I don't think you know what you're saying about looking at your profits and you're DCAing. Don't you think that your Bitcoins won't be lessened when you take profits? of course, you're selling some bitcoins as you're saying you DCA in profits so its quantity is also becoming lesser and that's why your projected value in $ is also lesser because you've taken profits. In traditional setup, you've lessened your stock because you've sold them.

tranthidung

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Quote from: Outhue on April 11, 2024, 05:17:37 AM

Do not invest money you will need soon, have a lot of patience, with Bitcoin, you only lose if you sell your Bitcoin for a lesser price.

It is too much.

If a trader or investor buys low, sells high, it brings profit, not loss. You probably wanted to emphasize that a longer time of holding bitcoin, a better chance to get more profit, that is true. To say it is loss, like you said, it's too much and surely not correct.

HODL bitcoins, you can do it! Look at HODL camp map to build up strong hands

See the HOLD chart and make your investment plan for entries and exits (withdrawal strategy).

Are you ready for the Bitcoin bull market? What's your plan? Some ideas for you

Outhue

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You can't lose if you DCA, the Knowledge you need is to DCA instead of investing all money into Bitcoin at once.

Do not invest money you will need soon, have a lot of patience, with Bitcoin, you only lose if you sell your Bitcoin for a lesser price.

A DCA investor is ultimately a winner, all they need after is some patience to hold the asset, the advantage of DCA is that you will have some good buying period and some flat buying period.

Bitcoin price isn't going to be the same as now in the coming week, there will be times you will buy at 68,000 and there might come times when you will buy at 58,000, the difference is your money will grab you better satoshis sometimes than the other times.

Cryptoprincess101

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You sound just like a total newbie that you are and am not sure if you did your research correctly but I am not here to condemn you as you still have a lot to learn in the forum looking at your current rank it is clear you have no much knowledge about Bitcoin investment but what I will tell you is that the DCA is actually the most preferred choice of a newbie because it is what will help you in the accumulating process no matter the price of Bitcoin at that material time, then you can seek comprehensive knowledge while DCA but saying that DCA is not good for a beginner makes you a bit lost but with time you will adapt and learn alot

Kelward

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Quote from: Why2why on April 10, 2024, 06:36:44 PM

so I say newbies should stay away from DCA until they have the knowledge of the risk and approach to DCA.

Thank you for reading.

Just like every member that has made comment on this thread, I think that you have the wrong meaning of DCA method, because it's the best strategy for newbies without any crypto experience and knowledge, all they need do is just keep accumulating with certain percentage of their incomes at intervals, maybe weekly or monthly. The only time that DCA method might not be too profitable is during the peak of bull run, because price will be at ATH them, but ATH price won't matter to the investors that intends to keep doing their DCA on a longer time, because bear run will come and another bull run will still come and reach a higher ATH.

Die_empty

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Quote from: Why2why on April 10, 2024, 06:36:44 PM

What I have noticed with my bitcoin holding is that, I have continued to lose more, each time i try to take advantage of the price to profits, in form of DCA approach.

You only lose money when you sell your coin for less than the price you bought. Even if the price has depreciated if you keep hodling it might appreciate in the future. All you need to do it to monitor your investment and sell when you are in profit.

Quote

This outcome lead me to make further research about the best way to build profits using DCA and I find out that, is a wrong thing to do as a newbies without adequate knowledge about the volatility of the bitcoin market, and also no matter how sweet the DCA approach have been for experience bitcoin investors, DCA can still be the worst for a newbies, so I say newbies should stay away from DCA until they have the knowledge of the risk and approach to DCA.

Thank you for reading.

Before engaging in any investment strategy there is a need to do research. But DCA is one of the best Bitcoin Investment strategies that requires less knowledge and skills. But it requires persistence and patience because if you hastily sell your coin, it will lead to loss. You don't need to sell your investment during this bull run, you can extend your investment time to the next bull season if you know you have not made a profit.

Crypt0Gore

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Quote from: Why2why on April 10, 2024, 06:36:44 PM

What I have noticed with my bitcoin holding is that, I have continued to lose more, each time i try to take advantage of the price to profits, in form of DCA approach.

This outcome lead me to make further research about the best way to build profits using DCA and I find out that, is a wrong thing to do as a newbies without adequate knowledge about the volatility of the bitcoin market, and also no matter how sweet the DCA approach have been for experience bitcoin investors, DCA can still be the worst for a newbies, so I say newbies should stay away from DCA until they have the knowledge of the risk and approach to DCA.

Thank you for reading.

What you are looking for is a good entry point, unfortunate for you, this isn't a good time to expect such a thing.

The best entry point for Bitcoin was in 2022 and 2023, in these years Bitcoin bottomed at 15k and 17k, if you have bought Bitcoin then you would have been in good profits already.

You shouldn't worry yourself, DCA right now is not bad, make sure you keep on doing this and stop looking at your wallet everyday, because a time is coming where one BTC will be sold for 150k, buying right now isn't that bad.

aoluain

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I think too that the OP is a little lost in terms of DCA.

DCA stands for "Dollar Cost Average" - in order to create an average it takes time which
should also negate the "loss" factor the OP is talking about because in the long term
Bitcoin is on an upward trajectory.

Quote from: Wapfika on April 11, 2024, 03:09:18 AM

Quote from: Davidvictorson on April 10, 2024, 06:54:06 PM

Quote from: Why2why on April 10, 2024, 06:36:44 PM

.

I am a little lost.
Isn't DCA a strategy to conveniently build up your Bitcoin assets at specific times that you have set for yourself? And that it doesn't matter whether the we are in a bull or bear market when you do it ? In my estimation it isn't about building profits like you have written but about setting a personal Bitcoin holding target and reaching it. People have DCA-ed they way into the 1 Bitcoin club.

The only scenario which I think that DCA will result the same description as OP when he keep buying on fixed time frame while the price of Bitcoin is at peak since the price is too volatile that cause too frequent up and down.

Maybe he keeps buying at 70+K every week while the price go dip after he made the purchase for the week. He will not experience the benefits of his current DCA unless the price already breakout the current ATH to new ATH.

Patience is the key on DCA which the OP probably forgot or didn’t know.

The fact that the OP is a newbie he probably doesnt get that even buying at "highs" can
result in profits - over time.

Its difficult for a lot of us to time the market and buy at the very bottom of a market
movement and a lot of us are buying at prices upwards of $65K but again HODL'ing
is the key and goes hand in hand with DCA.

avp2306

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Quote from: Why2why on April 10, 2024, 06:36:44 PM

What I have noticed with my bitcoin holding is that, I have continued to lose more, each time i try to take advantage of the price to profits, in form of DCA approach.

This outcome lead me to make further research about the best way to build profits using DCA and I find out that, is a wrong thing to do as a newbies without adequate knowledge about the volatility of the bitcoin market, and also no matter how sweet the DCA approach have been for experience bitcoin investors, DCA can still be the worst for a newbies, so I say newbies should stay away from DCA until they have the knowledge of the risk and approach to DCA.

Thank you for reading.

If you are always looking for the its value everyday for sure you might get afraid especially if the market is dumping since you would able to see a price decrease of your holdings. But if you don't care about the current value and your main target is to accumulate since you are not aiming to trade your accumulated bitcoin in short time span for sure that you will never get affected any bearish condition that might occur and you will finds this that another opportunity to increase the volume of your bitcoin holdings.

That's why you really need to do a lot more research and hopefully you follow the correct guides on how to do exactly the DCA method so you will not expect anything beyond and can stick with you accumulation plans. My suggestion is just ignore the volatility of the market and focus on your hodl goals.

Wapfika

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Quote from: Davidvictorson on April 10, 2024, 06:54:06 PM

Quote from: Why2why on April 10, 2024, 06:36:44 PM

.

I am a little lost.
Isn't DCA a strategy to conveniently build up your Bitcoin assets at specific times that you have set for yourself? And that it doesn't matter whether the we are in a bull or bear market when you do it ? In my estimation it isn't about building profits like you have written but about setting a personal Bitcoin holding target and reaching it. People have DCA-ed they way into the 1 Bitcoin club.

The only scenario which I think that DCA will result the same description as OP when he keep buying on fixed time frame while the price of Bitcoin is at peak since the price is too volatile that cause too frequent up and down.

Maybe he keeps buying at 70+K every week while the price go dip after he made the purchase for the week. He will not experience the benefits of his current DCA unless the price already breakout the current ATH to new ATH.

Patience is the key on DCA which the OP probably forgot or didn’t know.

moneystery

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dca is the simplest method that can be done by beginners who are investing in bitcoin for the first time. they can buy bitcoin in small amounts but periodically until their goals are achieved. usually people who do dca plan to save their bitcoin until the price is very high and then they sell it. so this is a very simple but quite effective method for people who want to invest in bitcoin but have limited money.

and discussing the losses that holders can experience due to dca, it is possible that they carry out dca in a short period of time. perhaps they were too worried that the price of bitcoin would fall and sold it at a price below the average price they bought it at. if that's the case, it's not the fault of the method but the fault of the individual who sold their bitcoins below the price they were supposed to.

Catenaccio

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Quote from: mk4 on April 10, 2024, 10:18:45 PM

Well that's just plain out wrong lmao. DCA is exactly the strategy for those without much market knowledge because most people are better off just slowly buying instead of trying to time markets. What do you recommend, buying dips? lmao — one of the recipes for disaster.

DCA is for newbies, for people who don't have time to trade but it's helpful for everyone who want to simplify their actions in the market with a common ultimate goal is getting profit.

DCA will cause losing more money, it's not correct warning from OP.

Quote from: Pokapoka124 on April 10, 2024, 10:23:34 PM

You hold an unpopular opinion about DCA and I think that is because you misunderstand the concept.

It is not unpopular only, but it is not right understanding and interpretation about DCA.

Quote from: Hewlet on April 11, 2024, 12:49:29 AM

There is no point in time you accumulate Bitcoin using the DCA methord where you just get into profit and regardless of your level of knowledge, you don't just lose your bought Bitcoin

Any investment needs time to get profit and DCA as one of investment method needs time to show its effects on your portfolio.

Sebas.tian

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Yes, if you lack the knowledge in your cryptocurrency trading you will definitely embrace losses at the end, because digital investment require knowledge to know the actual period to purchase from the market and wait for another season where long term traders and short term traders use to trade to make income. Once you approach the knowledge and you know how to use the DCA in the market rightly, I think you have nothing to worry at the moment, because you will definitely achieve income from your investment because that is the best strategy many investors are using to increase their incomes which newbies can use it also to increase their income . We always see some challenges from newbies in this forum, because they don't want to learn from those that know more than them to improve but they will ignore such experts in the community.

Hewlet

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Quote from: Why2why on April 10, 2024, 06:36:44 PM

What I have noticed with my bitcoin holding is that, I have continued to lose more, each time i try to take advantage of the price to profits, in form of DCA approach.

This outcome lead me to make further research about the best way to build profits using DCA and I find out that, is a wrong thing to do as a newbies without adequate knowledge about the volatility of the bitcoin market, and also no matter how sweet the DCA approach have been for experience bitcoin investors, DCA can still be the worst for a newbies, so I say newbies should stay away from DCA until they have the knowledge of the risk and approach to DCA.

it's obvious you don't know what the DCA method is and you probably don't have any Bitcoin in your portfolio at all.

There is no point in time you accumulate Bitcoin using the DCA methord where you just get into profit and regardless of your level of knowledge, you don't just lose your bought Bitcoin because you used iether the DCA methord, the lump sum method or whichever methord you choose to work with. What you're actually doing is buying and holding on to your Bitcoin and if you've been doing so, it's strange to believe that you've been in loss except you're just making statement you know little or nothing about. What's mostly related to losing your funds as bitcoinner isn't buying using the DCA methord but trading your Bitcoin. Of all the people involved in the Bitcoin ecosystem, the only people that have probably become unprofitable and that had experienced some level of loss are traders and never individual that buy Bitcoin for the purpose of HODling.

Topic: You will lose more if you DCA without knowledge - page 3. (Read 537 times)