Post
Topic
Board Bitcoin Discussion
Re: DCA'ing isnt a bad strategy
by
Dr.Bitcoin_Strange
on 09/09/2023, 20:25:22 UTC
People are trying to figure out the best way to invest in cryptocurrency because it can be very unpredictable. If you're an investor looking to reduce your risk, you might consider a strategy called dollar-cost averaging (DCA).

Dollar cost averaging is a known strategy used by Bitcoiners while investing in Bitcoin. Talking about crypto means you're generally referring to DAC as a strategy that can be used to invest in all altcoins. I think you should be specific.

Quote
Dollar-cost averaging means putting the same amount of money into an investment over time.

DCA doesn't necessarily mean that you will only have to be investing specific amounts at your planned time, you can do it your way, depending on the cash flow, or you can equally have a shift in your allocation amount. Let's say your total earnings for the month of January were $3k, and you decided to invest $1k into Bitcoin. In the following month, if your total earnings were $5k, you could decide to invest $2k into Bitcoin. Also, let's say if you have a huge amount of money, like $50k, and you don't want to invest it all at once into Bitcoin, you could then decide to invest $1000 every week. In some weeks, you could decide to allocate more than the usual $1k or less.