Post
Topic
Board Beginners & Help
Re: Compiling the worst advice to help newbies make money (= do the opposite)
by
o_e_l_e_o
on 20/01/2020, 17:50:33 UTC
It's great for eliminating biases, but it makes it incredibly easy to miss out on opportunities, especially on a market as volatile as Bitcoin's.
Sure, but as well as missing some opportunities, you also miss some big pull backs. That's the point - to smooth your entry price over time and bring it as close to the "average" as possible. If you have no desire to try to time the markets or read the charts, then it's a perfectly acceptable way for newbies to get involved in crypto.

The articles you have linked talk about DCA in the scenario of stocks and the S&P 500. These assets aren't as volatile as bitcoin, and the S&P 500 index (for example) has been on a pretty steady upward trajectory for the last 10 years. In these cases, I agree that DCA is probably a worse choice. In bitcoin, however, when the price can drop by $1000 in under an hour completely unexpectedly, then DCA helps to reduce that risk.

There's a DCA site for bitcoin as well here (https://dcabtc.com/) where you can play around with the numbers. Even if you had started DCAing in during the height of the bullrun back in December 2017, you would still be in profit today. Such is the point of DCA.