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

We need to have adequate knowledge in order to know how to use the DCA strategy because if you are familiar with this genuine strategy " Buy Low and Sell High", you are definitely in good approach.

Have to understand that not all things can be learned in just a single day but can take several days and market experience. We don't need to perfect and make no mistakes, it is impossible in a volatile market. Losing will just happen to anyone who sells their coins at a lower price than the price we bought them. DCA is not a wrong idea but what went wrong is when we are in the wrong timing (buying) because some people buy high and sell low due to FOMO and panic.

The ops may have misconceptions about what DCA mean and how to apply it, but from what I can understand from his statement what he is referring to as DCA is, buying the Dip and selling the top, although he will be using dollar to execute such trades but even at that we still have to understand the real terms behind DCA and how best we can apply it to better our overall experience.

Secondly also i suggests that the ops should spend sometime more in studying and learning newthings about what is DCA and how it works so that he can have a better informed background knowledge of the subject matters before writing a concept as he presented.

It is true that if we want to succeed in any task, it is best to acquire enough knowledge about that task. DCA method of investing is best for investing. However, if you acquire a little knowledge on investing and invest with the DCA method, you can be successful. Now if you want to profit from investing in Bitcoin with DCA method, then you need to continue investing with DCA method for long term. Now if you follow DCA method in short term then you will not be successful. If you can continue investing in DCA method for long period of 5-10 years then you will definitely be successful.

DCA is an ideal method for depositing bitcoins because it is relatively simple. You get the opportunity to deposit as per your ability on weekly or monthly basis. Here you can expect real profit only when you can continue DCA for long term and continuously. If it is short term you will not get your desired profit. I have not found any risk in depositing bitcoin through DCA.

I think you don't really understand what DCA approach is mate, because DCA actually saves you from such speculations, DCA is an investment approach whereby convinced that you're unto a good investment, you increase your portfolio on a planned periodic activity irrespective of the price hike, price fall or market speculations of such investment.  You tend to buy when the price is high, and also when its very low thereby striking an average value of your investments by combining both the purchases done on each trends and you'll see that you buy more on the lower trend which means gains for you over a longer period.

DCA is for everybody and it suits those who are investors and not just opportunists, you tend to grow your portfolio bearing in mind that the investment will appreciate and give you great ROI at the long run, its an advantage for those who wish to accumulate, but cannot do it using lump sum, they accumulate periodically until they have achieved the same quantity or even more that they would have bought using lump sum. That time you've achieved your investments target using a slow and steady process which is what DCA is all about

DCA is actually the best for newbies and those without expert knowledge to study the markets. For example in bitcoin investment, its only a professional with adequate knowledge of bit bitcoin history and price movement that would know exactly how to buy the dip. A beginner with limited knowledge would be lost and DCA would help him/her to buy both the dip and the pump thereby striking a balance between the two.

Let's have an example here
A salaried person embarks on the journey to accumulate bitcoin from the start of last year using DCA and wishes to invest $100 monthly and his colleague who wishes to save same amount and buy by the the end of last year, when the market price would be low.

Month            price.               Unit purchased
January.        $20,236.             0.004942
February.       $23,147.35         0.004320
March.           $28,478.48        0.003511
April.             $29,268.81        0.003417
May.              $27,219.66        0.003674
June              $30,477.25        0.003281
July               $29,230.11        0.003421
August           $25,931.47        0.003856
September     $26,967.92        0.003708
October          $29,755.90       0.003360
November      $37,712.75        0.002652
December       $42,265.19        0.002366

Total accumulations        0.042481‬

you can observe the various price fluctuations during the various months purchases and where he was able to buy the dips as well as the pumps and gradually, he was able to accumulate $1,795 worth of BTC instead of $1000 which his friend will likely purchase at the end of the year that is if the friend ended up buying with the price hike. He achieved his target DCA accumulation and recorded almost 80% gains without bothering about the price movements or being a professional. It will interest you that this same investment is now worth $2,703.

I guess you wanted the quick profit using the dca strategy to accumulate bitcoin. If no, I don't get why you'll speak such about dca strategy and sincerely speaking dca strategy is so common and favourable for investors who choose to invest in bitcoin, you don't necessary need to start with a wrong impression or else you'll paint every accumulation strategy as same. Dca strategy is used to accumulate monthly or weekly with any amount of your choice so long as you have the basic knowledge about bitcoin and dca. You have to bear some certain things knowing the kind of investment choice (bitcoin) with a volatile nature, planning is always needed alongside with your investment although I don't know what's triggering this thought but dca is one of the best and popular strategy for accumulating bitcoin

I can understand your view point given that, this post is just a week in and the price of Bitcoin have lately been heading towards the bears. I was frankly surprised how far it’s gone when I looked at the charts today but, that’s not all that is to say about the DCA strategy. If you tend to look at what the price of the coin is doing in the market before you take a buy, you’re not doing the dollar cost averaging no more.
You’re simply looking to buy low and sell high, opportunity cost and that’s not DCA.

DCA does more of looking at what funds you’ve got to invest and don’t care much about the price. Also, you don’t lose if you haven’t sold. That’s how hodling works! You only lose after you must have sold at a low after buying high.

That’s why, 1BTC = 1BTC. You’ve still got your Bitcoin and all you need to do is wait for the price to appreciate in a way that, it brings you into profit before you think of selling should you even sell at all.

You want quick profit and that's the problem, you don't even understand what DCA means because if you do you won't be expecting profits fast, you will even be hoping that this correction stays longer than most people wanted, so that you will have enough time to accumulate as many Bitcoin as possible.

There are many investors in crypto space today that aren't suppose to be here, crypto investments doesn't suit people like them, they are better off running a business that will bring them passive income everyday.

While people are feeling sad about a correction, it is a calling for me to start investing, I have been using DCA even when Bitcoin was trading for 70k but my DCA method increase in value once the bears attacked the market, which is the way it is supposed to be.

We definitely need experience to invest but there is no problem if you have little experience to invest in DCA method. Because the Dollar Cost Averaging method is a recommended and easy technique for beginners. People who invest using the dollar cost averaging method set a fixed average price, then buy at that price and plan to hold it for a long time by buying it regularly. As you said you lost every time you invested with the dollar cost averaging method maybe your investment was wrong. If you sell any coins you buy at a low price, you will lose money.

If someone is motivated to invest in Dollar Cost Averaging method, even if he has little knowledge about Bitcoin, he can spontaneously invest in Bitcoin. The advantage of investing in the dollar cost averaging method is that you buy whenever you get the chance and keep accumulating bitcoins regularly.

I am not an expert yet in bitcoin investment but from what i have read and understand so far DCA strategy is best suited for beginners and don’t require any special knowledge to adopt the strategy so once you understand how to implement the strategy then i don’t think there is any serious risk involved. DCA strategy entails investing certain amount at your own disposal and convenience at regular intervals from your earnings. This is the best strategy to accumulate bitcoin for beginners because it carries less risk and helps to control their investment policies of not investing more than what they can afford to lose and it is also a useful strategy for low income earners who cannot invest much in bitcoin at a go because they would be investing more than they can afford which is a bad discipline for bitcoin investment.

Maybe you are just not lucky and maybe you are not actually not DCAing and you’re not planning to hold for long that’s why you are so bothered about the dip. I don’t think DCA is about beating the price as you mentioned it’s all about investing for a long period regardless of the price. Bitcoin is bound to rise and fall in price due to it’s volatility so every investor should understand that and i think that’s the main purpose of DCA strategy, to take our eyes off bear periods and guarantee profits by holding for long periods.

I don’t know if you understand DCA properly but i am certain that you are probably mistaking it for some other strategy because the DCA i know is recommended for beginners and people without adequate knowledge price movements and market. I think you should probably refer back to your research and confirm properly because DCA is the easiest strategy for newbies since it doesn’t require any form of stress or understanding and also the risk involved is very minimal although holding for long can be more profitable.

There are three ways to accumulate bitcoin according to JayJuanGee bitcoin investment ideas which i came across few days back and they are DCA, Lump sum and buying the dip. I think reading the post itself would help you understand investment strategies better. Link is below
https://bitcointalksearch.org/topic/m.58719591

DCA means dollar cost average, u need to understand the concept before u start talking about incurring losses from the method, if u are doing DCA it means u are accumulating bitcoin gradually or periodically and as such u are not to accumulate a small and sell and be expecting a large amount of profit .DCA is periodic something and as a newbie since u u are new to crypto currency  it is advisable for u to use DCA method to accumulate a large amount of bitcoin in ur holding periodically also u may not have the capital to do lump sum .DCA method is for long term investment u buy and hold ,why buy a potential coin like bitcoin and u are in a rush to sell it off and to buy again, bitcoin is different from shitcoin.

We must have knowledge for everything but we have no idea about any subject. If we stay away from any subject thinking that it is new, then we can never do that subject. Each of us has knowledge and we must make proper use of that knowledge. In terms of investment, DCA investment method is a very effective method and those who have relatively little knowledge about investment but invest in this investment method are very successful. Since this investment method has the opportunity to invest in each step, an investor can invest at any stage of value, thereby reducing the amount of risk in his investment. It is different for those who have zero knowledge about investing but even those who have minimal knowledge about investing can use that knowledge and succeed in investing with DCA method.

It is unless as a newbie, you still don't know the best wallet to use and the best practices to keep your coins and key phrases safe, then that's when the DCA strategy is a no-no for you as a newbie.
Otherwise, despite the market situations, be it a dip or a pump in price or the trends that may be occasioned by whale movements and launch of new initiatives, the DCA strategy is still the most viable and profitable crypto investment strategy, mostly when ones income stream is on a steady basis and there's a good budget adherence discipline.

As far as I know, getting attached to DCA is the most effective way to accumulate bitcoin without taking so much risk. You are constantly buying at a minimal price regardless of the price of bitcoin, which enables you to store maximum amount of bitcoin by not spending your lump sum money but by consistently using your spare money to invest. With that, I have not seen any disadvantages with that even from a newbies point of view. But still, at least you should know the essence of DCA as well before you decide to practice it.

You don't need whatever knowledge that you're taking about to DCA, what you need is a steady income so you don't lose track of what you're doing. There's no way DCA is going to be the worst mistake a newbie will make. DCA is perfect for both newbies and experienced investors. You'll lose when you don't hodl your stand to keep DCAing but you decide to take profits when your Bitcoin investments is still prematured. Volatility of the market shouldn't affect your DCA strategy but you should increase your investment capital when the market is down, it's during this peridot that you should be investing more knowing that you'll be getting a discount price for your purchases.

It's called dollar cost averaging because you're averaging the price of the product that you're buying. You can't lose but always be in profit if you're DCA for a long duration and that should be the timeframe of your investment in Bitcoin and any other assets that you're buying. If you're thinking about the investment period being a short time then just buy the asset's at ones to avoid yourself all the stress of monitoring the market.

Let me tell you on a short note OP, DCA accumulating process is the best for Investors and I don't think if there's is an advanced knowledge needed for it. You only need to figure the current value of bitcoin and purchase when it seems lower than you formally withnessed or as your conscience may lead you via market suggestions or predictions.
You can as much purchase your bitcoin on a gradual process base on the volatility markets system at most when the value is depreciated but when you ignore to understand this market volatility then I'd say you haven't been on the right track of the DCA approach. Therein you actually need to understand rhe market volatile grades so you don't fall to buy more to your holding when the market is up high rather than when it's low in value.

Sometimes you newbies are the causes of your emotional regrets because you don't feel comfortable buying then the market is not cheering profits profits profits without knowing it's the most right time to buy, instead you bumps into the market when you hear others of making huge profits in the market in a main time and only then you're attracted to buy. Although it's not a bad time as well but be assured that bitcoin is most beneficial to the long time holders so whatever value of bitcoin in have accumulated, you're potential to make lucrative profits in as long you can hold for a long period of time.

Actually, it depends. I want to ask what you understand about DCA. The dollar cost average method asks you to invest a portion ever week without looking at the price and you should continue for a long time to have a good average buying price. But if you do it for let's say only ten weeks and expect a good result out of it, you didn't get it, buddy.

I consider my signature payments as DCA and it has paid out well. My average accumulating price was around 27K, which went up to 41K due to the recent spike. Yet I am in a good profit because I was doing it for a year. Now, if you start buying only since the last two months, you won't get the profit bro! You should learn more about it.

DCA is a good method for buying, holding to get profit but to get profit, it requires more than DCA.

Because it relates to capital management, financial life management of a person. Start with what is source of money used for the investment and what is financial reserve for life, for emergency and more. If a person has bad managements like borrow money to invest, invest all money in bitcoin, panic sell will come or forced sell will come when needs of money occurs.

With bad start like this, it will be very challenging to control emotion, psychology and actions.

DCA is not an investment strategy, it's a buying strategy. It says nothing about taking profits, so if you lose while investing with DCA, you most likely do some bad moves like panic selling, or selling in bear market.

DCA is not an efficient strategy though, it is being recommended for its psychological effects of doing small steps, which is easier for many people than investing big in one go and then worrying every time the price moves.

Are you by anyway trying to twist my brain or something else?
Because i still don't understand what you mean by newbies staying away from DCA does it mean that those who has been doing DCA all these while have been losing money or what, meanwhile we all know it to be the safest and easiest way to accumulate bitcoin when the market seems so hash on investors and to those who has missed their train to hold more bitcoin. Please DCA still remains the best for everyone, it just depends on the individuals who is doing DCA, but before you must need to make personal savings where you don't need to touch your bitcoin along your DCA process otherwise you could be tempted to start reducing your DCA level.

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.

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

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.

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.

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.

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.

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.

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.

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

• [ANN] JJG Sustainable Bitcoin Withdrawal Strategy
• https://bitcoindata.science/withdrawal-strategy

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.

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

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.

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.

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.

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.

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.


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.

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.

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.

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.

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.

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

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

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.

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.

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.