Sorry if it disturbs your discussion, lately I often hear how almost every time I meet my friends talk about investing in Bitcoin in the DCA way, I am curious and finally know the general description of DCA, which is to allocate a certain amount of money to invest regularly as you said. Does DCA here have to be supported by stable finances? for example, having a steady income from work which can later be used to invest more regularly.
I say that because my friend's discussion with his financial condition was clearly inappropriate. I mean, their income is unstable but investing the DCA way.
What do you think the ideal DCA looks like? I really need advice because I have been studying Bitcoin for a long time, my income is quite stable for now. It would be very profitable if this financial allocation was invested in Bitcoin. As long as I know the risks, I believe Bitcoin will be useful in the future and institutional adoption is also currently increasing. As someone who is interested in investment strategies, you definitely need the right method.
This discussion always repeats itself because every time I read this thread from the previous few months there is always discussion about the ideal DCA (for some people) and there are already several people who have given their views. You just have to look and read a few pages behind whether some people's views will be the same. suitable or not for you to adapt as a strategy that you carry out in your DCA.
Meanwhile, when you look at financial conditions (income) that are not very stable, actually that might be a reason, but I think when someone is aware of the economy and their income then it is not a problem because of course we already have financial management and we cannot possibly do DCA with the same percentage. bigger than the income we earn and save in one month.
That's why many people always discuss investing according to what we can afford because when we DCA it's not just about buying once and then it's done, but we need to take into account whether the money we spend (for the DCA portion) can make it consistent in the future because this is important. so that we know how much we have to budget for purchases in DCA in a day/week/month.
DCA doesn't mean going all in at once and if anyone does that, that person is not DCA in the real sense but have just gambled, because when you talk about DCA approach, it has to do with a long term practice for small investors that want to DCA all the way up and down depending on the market conditions at that time, but more also if any one have big bag and want to buy all in at once, it then left for them but they may not be DCA in the real sense of it.
So the ideal DCA will be buying all the way at every market direction setting aside only 20%-39% of your total monthly income and holding bitcoin and a traded asset that allows you to take advantage of the market at any point, and This also applies to DCA on any coin.
The approach to proper DCA can not be single handly outlined since various market organs also have their own