Good day my fellow-bitcoiners! Took some time to study
this topic about good advices given to novice investor into bitcoin field I came to conclusion that everyone gives advice to each and everyone to follow DCA strategy. Being not so advanced investor with less than 2 years term in the field I came to one strange experience that bothers me nevertheless. Whenever one is trying to follow DCA path it could affect potential investor into collision course with necessity to pay fee which is regulated by increased demand. To put it simple: with increase in bitcoin price the value of gas fee rises. Could it decline the profit in bitcoin investment to the extent when we are not able to pay the gas anymore? Let me explain it by my own experience on latest attempt to have business with CEX (I don't want to give it an add or spoil the impression so I will avoid to give the exact name for them). From the very beginning I knew absolutely nothing about how and what is bitcoin. So to give it a try I've put not more than 20USD into CEX and made several transactions with newly created account. That was the case when I saw the fee going up to 8-10$ to complete transactions by moving out assets or transferring them. So I had an idea that moving huge amount of assets on the blockchain could potentially solve the issue. As anyone could see there were quite big transactions made by US authorities recently. It even affected bitcoin rate for a short period and everyone has seen it at the market. Suppose I accumulate enough assets in bitcoin so that a need will occur to spend or transfer it for some reason will it be independent on the fee amount to save the earned or we have to feed miners with fee that will rise along with bitcoin value? More is the price - more fee you have to pay?
Two points that may help to answer your question:
- Gas is not the term used for Bitcoin. The concept is similar, though it's not the same. Bitcoin charges satoshi (sats) per byte for
network fees that are incurred on transactions. You do not need to pay a higher fee for the transaction to be confirmed, and the transaction will not be dropped if the fee is low. It will stay in the mempool until the network will confirm it.
- The fees will not nullify your Bitcoin unless you choose to pay a high network fee while network fees are high. This usually happens when the price spikes. So, the best way to mitigate this is to keep
a small portion (1/20 of your holdings) in a CEX or 10-20% in a P2P exchange so that you can still take advantage of high prices without having to pay for high network fees to move coins there during price peaks.
Bitcoin fees have never really effected anyone with more than 0.1 BTC, who are trying to sell during peaks. If you have a significant amount you should not need to worry. What you should worry about is keeping your coins secure in a self-custodial wallet.