Topic: You will lose more if you DCA without knowledge - page 4. (Read 537 times)

Two things you need to explain:
1. What knowledge people need to have to not make mistake for using DCA strategy.
2. If DCA strategy is worst for newbies, what strategy that newbies need to use?

That's not DCA, it's timing the market.

Timing the market is better than DCA, but for newbies, it's not recommended because they're scared when they see the market isn't in their side.

Thats not true. If you are doing dca for like months now its impossible that you dont earn or increase your asset value since the market is up since then. 6months ago if you do dca you can see that its increasing linearly. Only if you dont consistent doing the dca or maybe you skip some of the days that is low or good entry. Dca can be worse if its downtrend but its not so I am clueless on why on esrth have you said its not effective.

All I see here is that you are confused and knows nothing about DCA I might be an expert to educate you on DCA as the best option of investment or strategy, but the fact still remain. Thesame that DCA is the best investment approach. If you are confused about the DCA approach you can visit the buy the dip and hodl thread to learn more from jayjuanGee and other knowledgeable member about what DCA really mean. Apart from goin to the thread I can tell you that DCA approach is the best approach In buying bitcoin. It gives you the previlege to accumulate as little as you can without pressure, you can decide to invest as little as 5 or $10 dollars per week for as long as 10 to 15years. Another thing I noticed about you , is that you are talking about profit making, you should bear it in mind that DCA is not trading where you make short time profit rather a long term investment bodget. And it is said that any money invested in bitcoin through DCA approach should be an Amount that you will not be needing anytime soon since it's a long term journey.

I don't think so.
With basic knowledge and a little understanding of Bitcoin and its fundamentals, you can apply this DCA method which is an ideal way to manage risk in investing Bitcoin.

I may advise newbies to understand first the risk of Bitcoin before investing, it's a dumb idea to invest without knowledge.

You hold an unpopular opinion about DCA and I think that is because you misunderstand the concept. DCA method is not for traders, it’s more suitable for long term hodlers. The purpose of this strategy is to accumulate as much bitcoins as possible without having to break the bank. You can’t go wrong with DCA, that’s why it is highly recommended for newbies. Since you believe DCA is a terrible strategy for beginners and has cost you money, I would like to know what is your strategy? How would you suggest beginners accumulate bitcoins?  

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.

Of course, loss If we are careless without paying attention to the purchase price, for example, we happen to buy using DCA at the peak price for The final result if averaged may be different and this also needs to be remembered in every purchase also subject to taker and maker fees if transacting on the exchange. Do the calculation in conditions where the price of BTC is already at a high price, not when market conditions are down, you continue to accumulate, yes, of course, you will be able to average losses, out of the results.

What thing is easy without proper understanding? Almost nothing. Dollar cost averaging has a couple of little technicalities to it which you have to have a Good grasp of like the knowledge required in simple stock trading. Things like this is the reason why you notice that a lot of people tend to prefer hodling Bitcoin to dollar cost averaging and other trading related stuff, simply because of the technicalities that come with it. Aside from DCA , Bitcoin too has its level of volatility which if you are a short term Hodler, you have to be able to manage as efficient as possible in order maximize your profits. Long term Bitcoin hodlers have not much to worry about when it comes to volatility since all they have to do is buy in the dip , hodl and sell at bull.
The fact is , to become a nice Bitcoin Hodler a the most important thing you have to do is to understand the security of your coins and how to protect important information like your keys and seed.

DCA is simple to do. People only need to have money, regular money from their income, to buy an asset through DCA.

First importance starts with what asset they choose to buy. If they choose Bitcoin, it's good start.
Second, they must know where to buy and where to store their bitcoins.

If they lose bitcoins, after purchases, it's bad. Choose a good wallet to store their bitcoins is a third important thing.
https://bitcoin.org/en/choose-your-wallet
https://www.lopp.net/bitcoin-information/recommended-wallets.html

I don't think so.

What is knowledge in your opinion, is needed for newbies?

Mate all this you are saying is just off sorry to say, Because DCA is the best strategy for newbies when it comes to Accumulating Bitcoin. Inorder word a newbie don't need to have any complex knowledge before considering using DCA strategy, once you have the basic knowledge of Bitcoin you are good to go . May be as time goes then you will have to learn how to balance your financial situation while you continue your DCAing like by having an emergency funds ( to coverup any expenses) and also to prevent yourself from digging into your Bitcoin holding ( expecially as a long-term investor) when Is still premature or haven't yield any profit at all .


that is what the all system of DCA for. Due to the fact that market is highly volatile and we can't actually time the market. So DCA normally help with that because is the act of purchasing Bitcoin at different price interval ( either when the price is high or low) in a fixed time. So DCA is one of the helpful strategy in accumulating bitcoin for both newbie and the experience. So I will advice you continue to focus on DCA purchasing because if you keep on waiting misleading yourself that you need more knowledge about Bitcoin before thinking of accumulating, you will only endup missing out big time so start accumulating now with DCA buying and engage with bitcoin long-term investment and you will see howfar your portfolio will grow with time.

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.

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.